First, let’s differentiate between insurance for a rental car (rental car insurance) and rental car coverage. While these terms sound similar, they’re actually very different.
What Is Rental Car Coverage?
Rental car coverage is optional coverage from your personal auto insurance policy that covers the cost of renting a car while your car is being repaired under a covered claim. This is different from the coverage for a car that you are renting and driving in a non-repair situation. Car insurance covers rental car reimbursement only if you add this supplemental coverage; minimum coverage doesn’t include rental car reimbursement in any state.
Rental car coverage is part of your regular insurance policy, if you opted into this supplemental coverage. It means that, if your car is being repaired under a covered claim, your insurer will pay for the cost of a rental car so you can still drive around. In other words, you won’t have to pay a company like Enterprise out of pocket in order to rent a car.
The other term is insurance for a rental car; i.e., what that Enterprise employee offers you when you rent a car. This is optional, separate insurance solely for your rental car, and it’s what this article is about, largely.