Does Your Auto Insurance Cover Rental Cars and Out‑of‑State Travel? 

Whether you are heading to the mountains or driving up the coast, it is important to know how your auto insurance follows you across state lines.

Will My Policy Cover Out-of-State Travel?

Your policy generally will follow you across state lines. If you carry liability, collision or comprehensive coverage at home, those can apply when you travel to another state.

However, some states may require higher liability minimums than others. When you drive in a state with stricter requirements, your policy typically adjusts automatically to meet those minimums. Still, merely satisfying these laws won’t necessarily be sufficient. If you are involved in a particularly serious accident, you face losses beyond what your policy can pay out.

Does My Policy Cover Rental Cars?

Your personal auto policy often extends to rental cars, but the extent of that coverage depends on what you currently carry. For example, your liability, collision, comprehensive and medical payments coverage may extend to the rental vehicle. If your vehicle is disabled by a covered incident while you’re on an out-of-state road trip, your policy may also reimburse you for the costs of renting a car while yours is out of commission.

When to Consider the Rental Company’s Waiver

There are specific fees that rental companies may charge if you damage one of their vehicles that a standard policy might not cover. These include loss of use fees, which can compensate the rental company for the time their car is in the shop, and fees for the vehicle’s diminished value. How these fees may be applied can vary, but we can help you understand the details and decide if the rental company’s collision damage waiver is a wise addition for your trip.

Prepare for Your Trip

Our agents can help you review your coverage before you hit the road. If you have questions about your policy or need to update your coverage before your summer vacation, get in touch with us today.

 

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.