Renting a car, check with your existing policy first

rental car


Will you be renting a car soon? Going on vacation or even a business trip… many times people like yourself rent a car. It is important to know how you can save a few dollars when renting a car. In a future video / blog we will cover how the basic insurance works when renting or borrowing a car. This blog post / video is focusing on how to save a few dollars in the process.

The basic of auto insurance, is that your current policy will extend to the rental car. If you have full coverage, aka Comprehensive AND Collision, it will extend to the rental car. (Assuming you are in the U.S – please check with your insurance agent in regards to Canada and Mexico, or travelling overseas.) By using your auto insurance you can save by not having to pay the $15-$20/day common pricing that the rental car agencies charge.

I recommend calling your agent before you leave for your trip and making a few adjustments to your current policy:

  1. Ensure you have Comprehensive and Collision on your primary vehicle
  2. If you own more than one car, and none of them will be driven while on vacation, leave your primary car on the policy as active and mark your other vehicles as storage. This will remove some coverage’s and save you money. (Ensure that when you return from vacation you mark these cars as active again. Our agency can even set it to automatically go active again on a specific date you give us.)
  3. Lower your deductibles to $100 on Comprehensive and Collision for your primary vehicle. There will be an increase in cost, but if you only use these decutibles while on your trip and raise them again after you return, it will be a very nominal amount. The purpose of this – if something does happen while in the rental car you will only have a $100 deductible saving you hundreds or more from your typical deductible.
  4. Ensure you have towing and roadside assistance on your auto insurance. Typically this carries over to rental cars, again verify with your agent before assuming. In our case it covers your rental car. Again, potentially saving you hundreds if your rental breaks down while you are out of town.


Make sure to review your auto insurance policy before you leave town and rent a car. It is important to understand what is and is not covered when renting a vehicle. There are some restrictions as well…. those vary by carrier.

Stay tuned for a future video/blog post covering specifically how the carriers look at primary versus secondary insurance, affecting rates, claims, and eligible vehicles to ensure your primary auto insurance extends to the rental.


Be safe, drive carefully, and Have a Great Trip!


Video Transcript for the Hearing Impaired (Closed Captioning is embedded in the video):

Hey guys! I am in beautiful, sunny, Destin Florida right now on vacation which made me think it’s a great time to make a little video here to help educate you on how you can save money on your car insurance when you rent a car. How that works. Stick around for the details.

Hey guys, welcome back! Ronald Hyre here, Farmers Insurance – Hyre Insurance Agency. Like I said, I am in Destin Florida. This is actually a Thank You to my clients; I won a trip, that’s why I’m here. I’m here with my family, we’re almost done we’re having a great time. Finally sunny – had a couple days of rain.

Anyway Rental Car Insurance – how’s it work what’s happening. You currently have, hopefully, full coverage on your vehicle if you’re renting a car. That coverage extends to your rental car, so comp and collision. If you have multiple cars – quick tip there – mark the other cars as storage while you’re gone as long as they’re not going to be driven of course. But your primary vehicle you want to leave as full coverage because that is going to extend to your rental car. So that’s how you save a few bucks.

The other way is to lower those deductibles. Because if you’re in a collision in that rental car you have to pay your deductible. So I would suggest lowering your deductibles to Farmers lowest of $100 per comp and collision. That will technically increase your rates, however will only be for that week or two that you’re on vacation. It’s not going to be indefinite you can change them back when you’re back from vacation. Now how’s that save money? Well you don’t have to pay the $10-$15 a day, some $20 a day, that the rental car companies charge for their insurance for their vehicles. So it’s a great way to save.

You can utilize your existing insurance and tweak some coverage’s and hope you have a great time on vacation.

Guys have fun. Be Safe. Drive Carefully.

Have a great day everyone!


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