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Search by Quote ID → Search by Date of BirthHow Does Rental Car Insurance Work?
Rental car insurance is there to make sure you’re not stuck paying out of pocket if something happens to a car you’re borrowing. With Mercury, you can add Rental Car Benefit coverage to your auto policy (as long as you already have collision or comprehensive coverage). This helps cover the cost of a rental while your car is being repaired after a covered accident.
Here’s how it works:
- You choose a daily limit—anywhere from $30 to $100—for up to 30 days.
- Mercury will cover the rental rate, mileage charges, and taxes up to that limit.
For example, if you have $30 per day in coverage and your car is in the shop for 10 days, Mercury would cover up to $300 for your rental.
Does My Auto Insurance Cover Rental Cars?
In many cases, yes, your personal auto insurance will cover a rental car the same way it covers your own vehicle. That means if you have liability, collision, and comprehensive coverage on your policy, those protections usually carry over when you rent a car in the U.S. or Canada. For Mercury customers, your coverage typically mirrors what you already have at home, as long as the rental is in these regions.
But there are some important exceptions:
- If you don’t have collision or comprehensive coverage, your policy probably won’t pay for damage to the rental itself. In that case, you might want to consider the rental company’s Collision Damage Waiver (CDW/LDW) or see if your credit card offers rental protection.
- Personal auto policies don’t always cover every rental-related expense. For example, “loss of use” fees (what the rental company charges while the car is out of service) or certain administrative costs may not be included.
When in doubt, contact your insurance agent to see what is and isn’t covered.
Why Should I Add Rental Car Coverage?
It’s bad enough when you get into a car accident, but it can be even more of an inconvenience if you’re left without a vehicle while your car is being repaired. The amount of time it takes to repair a vehicle after a collision varies depending on the extent of the damage. Rental car insurance coverage can really help. Here’s why:
Keeps You Moving After an Accident
If your vehicle’s in the shop after a collision or covered loss, having rental reimbursement means you won’t have to scramble for alternate transportation.
Budget-Friendly Peace of Mind
This coverage usually costs just a few extra dollars a month. That’s a fraction of what you’d spend renting a car on your own, which can run hundreds of dollars in just a week.
Avoids Out-of-Pocket Surprises
Without car insurance for rentals, you’re on the hook for the full cost of a rental. With it, your insurance can either pay the rental company directly or reimburse you quickly. This helps you avoid surprise bills and eases some of the stress when you’re already dealing with car repairs.
Who benefits most?
- Anyone who depends on their car daily
- Drivers with just one household vehicle
- People who don’t want surprise rental costs after an accident
Drivers save hundreds* when switching to Mercury Insurance.
*Individual savings may vary.
Frequently Asked Questions About Rental Coverage
Do I need to buy insurance from the rental company if I already have car insurance?
Not always. If your auto policy already includes liability, collision, and comprehensive coverage, it often applies to rentals too. Check your policy (and any credit card perks) before you say yes at the counter. You might already be covered.
Does full coverage auto insurance cover rental cars?
Usually, yes. Full coverage typically extends your liability, collision, and comprehensive protections to a rental car in the U.S. and Canada. Just double-check for any limits or exclusions, especially for fees unique to rentals.
How does liability insurance work for rental cars?
Liability coverage helps pay for injuries or property damage you cause to others while driving a rental. Your own policy’s liability limits generally follow you, but rental companies also include at least the state’s minimum coverage.
Does my car insurance cover a rental car if the other driver is at fault?
Yes. If the other driver is at fault, their insurance should cover your rental costs. If that payment is delayed or disputed, your own rental reimbursement coverage can step in so you’re not left stranded.
Will my insurance cover a rental car if I get into an accident?
If your policy includes collision and comprehensive coverage, it should cover damage to a rental car the same way it covers your own. However, you may still be responsible for your deductible and any costs above your policy limits.
Does Mercury offer rental car coverage?
Yes. Mercury offers a Rental Car Benefit add-on for vehicles with collision or comprehensive coverage. You can choose a daily limit (typically $30–$100) for up to 30 days after a covered accident.
How much is rental car insurance?
From your insurer, rental coverage is usually just a few dollars a month. If you buy it from the rental company instead, it can run $10–$30 a day, depending on the type of coverage.