The names are close; the coverage is not. Here is the difference.
Rental reimbursement, in one line
Rental reimbursement pays for a loaner while your vehicle is being repaired after a covered claim. It is covered fully in rental reimbursement coverage. It has nothing to do with a car you rent on a trip.
Rental car coverage, in one line
Rental car coverage is the question of whether your auto policy protects a car you rent yourself, for a vacation or a business trip.
Does your liability extend?
For a temporary personal rental, your liability coverage often extends to the rental car, so you carry your own bodily injury and property damage limits with you. If you only carry the state minimum, that is what you bring to the rental too.
Does comp and collision extend?
If you carry comprehensive and collision on your own car, it often extends to a temporary rental, minus your deductible. If you carry liability only, your policy will not pay for damage to the rental, which is where the counter coverage or a credit card benefit matters.
Credit card coverage and loss-of-use charges
Credit card rental coverage is common but often secondary and limited, and may exclude certain countries or vehicle types. Rental companies can also charge for loss of use and diminished value, which your auto policy may or may not pay. For trips outside the country, especially Mexico, your U.S. policy may not follow you at all.
Before you rent
Know your own limits and deductibles, check whether you carry comp and collision, read your credit card’s terms, and consider the counter coverage if your own policy would leave a gap. A two-minute check beats a five-figure surprise.
Continue the series
You are reading part 14 of How to Compare Auto Insurance Quotes Without Getting Burned.
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