For drivers in Rosemount, Eagan, Apple Valley, and the South Metro heading out this summer
Summer is here, and if you’re like a lot of Minnesota families, that means road trips, weekend getaways, and maybe a flight somewhere warm with a rental car waiting at the other end. But before you pull out of the lot, it’s worth knowing exactly what your auto insurance actually covers — and where you might be left exposed.
The short answer: it depends
Your personal auto insurance policy often extends to rental cars — but not always, and not always completely. Here’s what typically carries over:
- Liability coverage usually transfers to a rental, meaning if you cause an accident, your policy helps cover damage to the other driver and their vehicle
- Collision and comprehensive also typically extend to rentals if you carry them on your own policy — so if you’re liability-only back home in Rosemount, you won’t have collision or comp coverage on that rental in Chicago or Denver either
The key word throughout all of this is typically. Every policy is different, and the details matter.
What your policy probably won’t cover
Even if your auto insurance extends to a rental, there are common gaps that catch people off guard:
Loss of Damage Waiver (LDW) costs — Rental companies charge a daily fee for what they call a “loss damage waiver.” Your personal policy may cover the actual damage to the car, but it usually won’t reimburse you for the LDW fee itself.
Loss of use charges — If you damage the rental and it’s out of service for repairs, the rental company can bill you for every day that car isn’t earning them money. Many personal auto policies don’t cover this.
Administrative fees — Rental companies often tack on fees when they file a claim. Again, not always covered by your personal policy.
Business travel — Using a rental for work purposes? Your personal auto policy likely excludes that entirely.
What about credit cards?
Many travel credit cards offer rental car coverage as a perk — but read the fine print carefully. Most card coverage is secondary, meaning it only kicks in after your personal auto insurance pays first. Coverage limits, excluded vehicle types (large SUVs, luxury cars, trucks), and international restrictions vary widely by card.
If you’re relying on your credit card as a backup, call the number on the back before your trip and confirm exactly what’s covered for your specific rental.
So should you buy the rental company’s coverage?
Not necessarily — but it’s not always a bad idea either. Here’s a quick way to decide:
- Skip it if you carry full coverage on your personal policy and your credit card offers solid secondary coverage
- Consider it if you’re liability-only, traveling internationally, renting a larger or specialty vehicle, or simply want zero hassle if something goes wrong
- Buy it if you’re on a business trip, your personal policy excludes rentals, or you just want complete peace of mind on vacation
The rental counter is not the place to figure this out. Make the call before you leave.
Heading out this summer from the Twin Cities?
Before your next trip, take five minutes to call your Rosemount insurance agent and ask two simple questions: Does my policy extend to rental cars? And are there any gaps I should know about? At Sentinel Assurance Group, we’re happy to walk through your coverage so you can hit the road — or the airport — with confidence.
Serving drivers in Rosemount, Eagan, Apple Valley, Lakeville, Farmington, and the greater South Metro area.