Insurance for Rental Cars
Do I Really Need it?

Insurance for rental cars - Does my insurance transfer to a rental car? As an insurance agent, I get this question almost everyday. And the answer is.........well....that depends.

Insurance varies from state to state and so does the personal auto insurance policy. I will be discussing the North Carolina insurance policy as that is my primary state of license. So, check with your agent or read your policy if you are unsure.

Back to the question at hand: Insurance for rental cars - Does my insurance transfer to a rental car?

Yes, it does - partially. The liability portion of the policy will transfer and if the policy has comprehensive & collision, the policy allows you to transfer coverage to a rental car or other substitute transportation.

Keep in mind that not all vehicles transfer. Any vehicle with a gross vehicle weight greater than 10,000 pounds is excluded in your policy, this would include moving trucks.

Vehicles used for business or farming would also be excluded.

The biggest gap in coverage is for loss of use. If you are involved in an accident in the rental car, the rental company can hold you liable for the ‘loss of use’ of the vehicle.

Loss of use is the time that the rental car company cannot rent the vehicle while it is being repaired. If this happens, your insurance policy DOES NOT cover the ‘loss of use'.

The loss of use can sometimes be very expensive, but some companies do offer this coverage as an endorsement.

In order for loss of use to be covered, the policy must have the endorsement NC 03 30. Not all companies offer this coverage in North Carolina.

Below is a list of our companies that do offer the loss of use endorsement. Rate is $4/year.


Companies that DO NOT offer loss of use:

National General

When in doubt, Brown-Phillips Insurance always recommends getting the damage waiver protection that the rental car company offers to be fully protected. 

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