Last Updated on September 16, 2022 by Kristin
Need a car for a month or more? If you usually decline the insurance offered at the rental car counter, it’s important to know how long your auto insurance or credit card will cover collision insurance on a long-term car rental.
Auto insurance companies and credit card companies impose limits, but the specifics vary. To play it safe, always check with your provider for reservations lasting longer than two weeks.
Will Your Auto Insurance Cover a Long-Term Car Rental?
Don’t know if your auto insurance policy will keep you covered for a long trip? It’s best to call the insurance company directly. Alternatively, look up your policy online if relying on your auto insurance to cover a long-term car rental.
Most major auto insurers cover rental cars for up to 30 days. The timeframe can vary and policies are not always straightforward. For example, Geico generally covers private passenger vehicles rented for 30 days or less. Meanwhile, Allstate auto policy covers a two-week car rental, and longer-term rentals are evaluated on a claim-by-claim basis.
Need a long-term car rental because your personal vehicle was in an accident? The rental car cost may be covered if you opted to purchase rental reimbursement insurance. Insurance companies typically offer this to cover expenses while policyholders shop for a new car or wait for repairs. This rental reimbursement coverage provides a per-day limit for a specified time, such as $30 per day for 30 days. Bonus: if the insurance company is paying for the rental, they’ll likely cover it, no matter how long you have the car. (But, as always, check with your insurance company.)
PRO TIP: Want to be sure your personal auto insurance covers your entire long-term car rental? Split your rental into two consecutive transactions under 30 days apiece. If you need a car for 45 days, for example, make two separate rental car bookings. The first rental would take you through the first 30 days and the second would cover the last 15 days. Should you get in an accident with either rental car, your personal auto insurance coverage would remain valid since each rental period would be less than 30 days.
Will Your Credit Card Cover a Long-Term Car Rental?
But what if you don’t own a car? Your credit card likely provides coverage for rental cars, but the terms vary from card to card so it’s always best to check your own card’s policy before making a reservation.
A WalletHub study found that about 38 percent of credit cards cover domestic rentals for 15 days and international rentals for 31 days. Just over half of credit cards (52.3 percent) cover both domestic and international car rentals for at least 30 days, while about nine percent cover rentals for just 15 days.
Some Visa cards, but not all, provide coverage for damage, vandalism and theft of a rental vehicle for up to 15 days. International rentals (with the exceptions of Jamaica, Israel and Ireland) are often covered for up to 31 days. Some premium cards, such as Chase Sapphire Reserve, cover car rentals for up to 31 days.
MasterCard policies vary but most card issuers cover rental cars for up to 31 days. For example, the HSBC Premier World Mastercard provides coverage for that period of time.
American Express sets out a blanket 30-day coverage period for car rentals across its cards. However, cardholders can extend that period to 42 days if they pay for the Premium Car Rental Protection, which is a flat $24.95 per rental, not per day, making it decidedly cheaper than what you might pay for over-the-counter insurance at the rental car agency.