(Updated on October 28, 2019)
There are two possible situations where you’ll need rental cars in the United States. The first situation is if your current vehicle is in need of repair, being repaired, or has been in a recent accident.
The second situation is if you’re flying somewhere and need to rent a car at your airport destination. In either case, you’ll want the best car insurance possible for your car rental.
This can get tricky because a lot of rental car companies will push you into purchasing the most expensive insurance packages. A car that is $20 to $40 per day to rent may end up costing another $20 per day if you purchase the wrong insurance.
The rule of thumb is to never purchase insurance from a car rental agency. They usually provide their own insurance policies which are designed to make themselves the most money possible. These are not traditional auto insurance companies which offer discount opportunities to drivers.
That is why you should look to traditional insurance companies when it comes to insuring your rental cars or check to see if your credit card company offers complimentary rental car insurance as a benefit.
Top 4 Rental Car Insurance Companies
What you may not realize is that your current auto insurance policy likely offers coverage for car rentals. Not only will the insurance pay for your daily car rental in some cases, but they’ll provide the insurance coverage for it as well. It all depends on the specifics of the policy that you have with them.
Below are the 4 best car insurance companies for rental cars in the United States. If you don’t already have an insurance policy with one of these companies, you should consider getting one if you plan to rent a car soon.
If you rent a car through the Hertz car rental agency, you could be entitled to a 25% discount if you’re already an Allstate customer. Allstate and Hertz have a special partnership which allows Allstate members to receive this amazing benefit.
Also, if your Allstate insurance plan has liability coverage, comprehensive coverage, and/or collision coverage, then you might possibly be able to extend this coverage to your rental car too. But you cannot rent a luxury car, though. It must be a standard vehicle to satisfy your basic driving needs.
Most private car insurance policies through Geico will cover some of the costs of renting a vehicle. More importantly, the driver can extend the limits of their private car insurance coverage over to their rental car.
Look to rent a car through the Alamo car rental agency because they have a good relationship with Geico. Check the specifics of your Geico policy to find out how much it is to rent a vehicle per day with their coverage.
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3) State Farm
If your primary vehicle is getting fixed in the auto shop because of damages or other faulty issues, then your State Farm policy will assist you in the cost of renting another vehicle until your primary vehicle is repaired.
This is done through a rental reimbursement agreement which is found on most of State Farm’s policies. Consider renting your vehicle through Hertz because they may offer you lower rental rates if you’re a State Farm customer.
Esurance does offer rental reimbursement too. However, it is an optional feature which you must choose when you sign up for your insurance policy with them.
It will raise the price of your monthly premium, but it’ll be worth it if you ever get into an accident and need to rent a car. The only stipulation is that your primary car must have become incapacitated due to vandalism, an accident, or theft.
Then you will get help paying for your rental car costs. But if your car simply fails because of mechanical issues, then that won’t get you any rental coverage.