Whether you are covered by your insurance policy when driving a rental car depends on the protocol of the insurance company, and the state in which you live. Depending on these factors, you may have sufficient coverage under your own car insurance policy to operate a rented car legally and without risk. If not, most rental companies do offer additional coverage, the cost of which varies by state, to offer protection should you be involved in an accident.

Many car insurance policies offer full coverage of their clients’ use of rental cars; others offer a degree of coverage, and some provide none. These wide variances between insurance policies make it vital for to you carefully review both the rental agreement and your car insurance policy in order to make an informed decision on how much extra coverage (if any) you may need to purchase from the rental company.

To do this, your car insurance policy should be checked thoroughly for its specific terms and conditions regarding rentals. If you have done this and are still unsure, speak to your insurance agent or company directly and they will gladly help.

If, after thoroughly reviewing both your policy and rental agreement, you decide to proceed under your own auto insurance policy, it is important to note the process that takes place in the event of an accident. If you are involved in an accident in a rental car, the rental company will work with your insurance company in order to reach an agreement. In most cases, if you have done the proper research and documentation, your insurance company will cover the damages. You may have to pay your deductible to the rental company and, in some cases, may face penalties from your insurance group for any claim filed by a rental company against you.