Auto Insurance Medical Coverage: Does It Extend To Rental Cars?

Does auto insurance cover medical expenses in a rental car?

If you already have auto insurance, it will likely cover medical expenses incurred in a rental car accident, but only up to your policy's limits. Personal injury protection (PIP) and medical payments (MedPay) coverage in your auto insurance policy can help cover medical expenses for you and your passengers if you get injured while driving a rental car. However, it's important to note that auto insurance typically covers only personal, non-business use of rental cars.

Personal injury protection and medical payments coverage

Personal Injury Protection (PIP) and Medical Payments Coverage (MedPay) are two types of insurance coverage that take care of medical expenses following a car accident. They also cover the medical expenses of your passengers. PIP is a type of no-fault insurance that is mandatory in some states and optional in others. MedPay, on the other hand, is an optional supplement to car insurance policies.

Personal Injury Protection (PIP)

PIP provides coverage for medical costs, lost income, childcare, household expenses, survivors' loss, and funeral expenses. It is important to note that PIP does not compensate for pain and suffering. The availability and specifics of PIP coverage vary from state to state. In some states, it is obligatory, while in others, it is offered as an optional coverage. PIP costs can range from $2,500 to unlimited medical expenses and permanent injury benefits of $250,000.

Medical Payments Coverage (MedPay)

MedPay covers 'reasonable and necessary' medical expenses incurred by an insured person after a car accident, regardless of who caused the accident. It typically has a payout limit ranging from $5,000 to $10,000. MedPay can serve as primary medical insurance in some cases, while in others, it acts as a supplement to existing health insurance coverage. It also covers a wider range of individuals, including passengers in your vehicle and public bus riders who are injured in an accident.

Key Differences

While both PIP and MedPay cover medical expenses, PIP provides more comprehensive coverage, including lost wages and other accident-related costs. MedPay, on the other hand, is an optional add-on with more limited coverage. PIP does not have subrogation rights, meaning the insurance company cannot seek reimbursement from the responsible party, whereas MedPay does. MedPay is typically cheaper than PIP.

Credit card rental insurance

When it comes to credit card rental insurance, it's important to know what coverage you have and when it applies. Most major credit card networks, including Visa, Mastercard, and American Express, offer some form of rental car coverage, but the specific benefits can vary by card issuer. To find out the details of your coverage, you can call the phone number on the back of your card or refer to the guide to benefits provided by your card issuer.

• Eligibility requirements: To be eligible for credit card rental insurance, you typically must use the credit card to pay for the rental car in full and decline the rental company's collision damage waiver (CDW) or loss damage waiver (LDW). The driver at the time of any accident must be listed on the rental agreement.
• Coverage limits and exclusions: Credit card rental insurance usually covers collision damage waivers or loss damage waivers, but it may not include liability concerns, personal injury protection, or coverage for personal belongings. Additionally, certain types of vehicles, such as luxury or exotic cars, may be excluded from coverage. It's important to carefully review the terms and conditions of your credit card rental insurance to understand any limitations or exclusions.
• International rentals: Credit card rental insurance may or may not apply to international rentals, depending on the card issuer and the country of rental. Be sure to check the coverage details before renting a car abroad.
• Claim procedures: In the event of an accident or damage to the rental car, you will need to follow the claim procedures specified by your credit card company. This may include submitting various documents, such as a copy of the accident report, the rental agreement, repair estimates, photographs, and a police report.
• Primary vs. secondary coverage: Most credit cards offer secondary coverage, which means it kicks in after your personal auto insurance policy pays out. However, some premium credit cards offer primary rental car coverage, allowing you to file a claim directly with the credit card company.
• Chase Sapphire Preferred® Card: This card offers primary rental car coverage for domestic and international rentals, covering damage or theft up to the vehicle's actual cash value.
• Capital One Venture X Rewards Credit Card: This card includes primary rental car coverage and covers damage or theft up to the vehicle's actual cash value. It excludes rentals in Jamaica, Northern Ireland, the Republic of Ireland, and Israel.
• Bilt World Elite Mastercard® Credit Card: This card offers primary rental car insurance with no specified coverage limits or excluded countries.
• American Express cards: While American Express cards typically offer secondary rental car coverage, you can enroll in their Premium Car Rental Protection program for primary coverage. This program offers enhanced coverage for a flat daily rate, charged automatically to your card when you rent a car with your American Express card.

Non-owned auto coverage

For example, if an employee drives their own vehicle for work and gets into an accident, the non-owned auto coverage can help pay for damages to the other person's vehicle and medical costs if the employee is sued for medical costs later. Additionally, non-owned auto coverage can also cover legal expenses if the business is sued for negligence.

Personal health insurance

There are several types of personal health insurance plans, each offering different levels of coverage and benefits. For example, bronze health insurance plans feature low monthly payments but have higher deductibles, making them ideal for those with minimal healthcare needs. On the other hand, gold health insurance plans have higher monthly payments but lower deductibles, making them suitable for individuals or families with regular and ongoing healthcare requirements.

It is important to carefully review the terms and conditions of personal health insurance plans to understand what is covered, what deductibles or copays may apply, and whether there are any exclusions or limitations. Additionally, individuals should consider their own healthcare needs and budget when selecting a plan to ensure they have adequate coverage.

Personal auto insurance

It's important to note that personal auto insurance typically only covers personal use of rental cars, not business use. So, if you're renting a car for work purposes, your personal auto insurance may not apply. Additionally, personal auto insurance usually only covers rental cars in the US and Canada, so if you're travelling abroad, you might need additional coverage.

Before renting a car, it's a good idea to review your personal auto insurance policy to understand what is and isn't covered. For example, personal auto insurance typically won't cover the rental company's "loss of use" fee, which is the charge for lost income while the rental car is being repaired.

If you don't have personal auto insurance, or if there are gaps in your coverage, you can purchase rental car insurance from the rental car company or a third-party provider. This will ensure you're adequately covered in case of any incidents or accidents during your rental period.

Frequently asked questions