November 29, 2022
Does Geico Auto Insurance Cover Rental Cars

Does Geico Auto Insurance Cover Rental Cars

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Does Geico Auto Insurance Cover Rental Cars? At the rental car counter, you quickly start pondering how much insurance cover you need. If you have Geico auto insurance for your primary vehicle, the good news is that you are covered for rental cars. The big caveat is that you are only covered up to the limits of your personal vehicle’s motor policy.

Your Geico car insurance extends your rental vehicle to the same coverage limit as your primary vehicle. That means if you drive a brand new luxury sedan and rent a compact car, you’re good to go. But what if you drive a 15-year-old stunner and want to rent a big vehicle with lots of bells and whistles? That’s where it gets tricky.

Does Geico Auto Insurance Cover Rental Cars?

It can be both a blessing and a curse that your Geico car insurance is the same for your primary and rental vehicles. If you own an old club, you may not have adequate insurance coverage for a rental car that is likely newer and more valuable. Geico recommends checking that you have adequate coverage before renting a car.

Did you forget your homework before renting the car? To be on the safe side, opt for the over-the-counter Collision Damage Waiver (CDW) — or better yet, save some cash by getting cheap third-party insurance before you leave the rental lot.

In the event of a rental car accident, you will receive the deductible from your car insurance policy and your insurance will cover the remainder up to the limit of your policy. Anything over this limit can be protected by your credit card, but again, it’s best to check your card’s coverage specifically for rental cars. Always know before you go.

6 reasons to take out rental car insurance

Even if you have some coverage, there are times when it’s still better to get additional rental car insurance. Among them:

  1. You don’t want to pay the deductible in the event of an accident. If your car insurance deductible is high, so will your rental car. It can give you the peace of mind of simply purchasing rental car insurance and knowing that you won’t have to pay more than that amount to get on the hook.
  2. You do not want to make any claims from your insurance. Maybe you recently had a claim and don’t want your premium to skyrocket. Two claims in one year can significantly increase your insurance premiums, so exercise caution and get insurance.
  3. Your reporting is erratic. If your Geico car insurance isn’t complete, you may want to purchase the CDW. Maybe you have tight health insurance and want to get accident insurance. If you don’t have liability insurance, you may want to buy one.
  4. Your coverage limits are low. If you are driving in an unfamiliar area or under inclement weather and are concerned about possible damage to the vehicle, you should consider increasing your coverage level or purchasing additional coverage from the rental company or a third party.
  5. You rent an expensive vehicle. Remember that your Geico car insurance only covers you up to the limit of your own vehicle’s policy. You might want to increase coverage for your fun weekend rental in a Corvette. Always check your coverage limits.
  6. You rent in another country. With Geico, you’re covered for car rentals in the US and Canada. If you are traveling outside of these two countries, you will need to take out additional insurance. (Mexican rentals require additional insurance anyway.)
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Is liability coverage sufficient for renting a car?

According to GEICO, policyholders should consider purchasing additional coverage for their rental car if they only have a liability policy. The main reason is that liability insurance only covers the damage you cause to other people and their vehicles. So if you have an accident and it’s your fault, your liability insurance won’t help you pay for the damage to the rental car.

The best protection against accidental damage is comprehensive insurance. Car accident insurance covers your vehicle if you are involved in a car accident, even if you are at fault. However, collision coverage has limits and you must pay a deductible before your insurance begins.

How much is the coverage of a rental car?

Different car rental companies charge different amounts for coverage. The table below shows the average amounts for car rental insurance from other companies.

Average Cost of Rental Car Insurance with Different Rental Companies

 Loss Damage WaiverLiability CoveragePersonal Accident and Personal Effects CoverageTotal Cost for Rental Car Insurance Per Day
Enterprise$30$17$13$60
Budget$9$15$7$31
Hertz$27$19$7$53
Alamo$25$13$6$44

As you can see, Enterprise’s rates are significantly higher than other companies, and Budget is the cheapest auto insurance option. However, if other companies offer better rental rates, the price of insurance may not matter too much.

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Regardless of which company you choose for your rental car, car insurance rates are much higher than standard insurance rates for the same coverage.

Can I get a GEICO car rental discount?

There are no GEICO discounts on rental cars, but you can get a rental refund from GEICO, which can help you save money on car rental if you ever need a rental car while your vehicle is being repaired.

At GEICO, rental cars are covered under the company’s rental refund program, but this coverage only helps if you need a rental car because your car needs repairs. Keep in mind that rental fees won’t help you afford a rental car if you’re vacationing in another state.

To get a rental refund with GEICO, you can contact your local GEICO agency to see how much coverage would cost in terms of monthly rates.

Do I have to take out fully comprehensive insurance for my vehicle?

If it works with your budget, consider purchasing comprehensive insurance for your vehicle. Comprehensive insurance offers you financial protection in the event of an accident, car damage, hail, or other storm damage to your car, and much more.

The table below shows the average comprehensive third-party liability and auto insurance rates in each state along with GEICO’s rates.

GEICO Full Coverage Auto Insurance Rates by State

StateAverage by StateGeico Annual Premium
Alaska$3,421.51$2,879.96
Alabama$3,566.96$2,866.60
Arkansas$4,124.98$3,484.63
Arizona$3,770.97$2,264.71
California$3,688.93$2,885.65
Colorado$3,876.39$3,091.69
Connecticut$4,618.92$3,073.66
District of Columbia$4,439.24$3,692.81
Delaware$5,986.32$3,727.29
Florida$4,680.46$3,783.63
Georgia$4,966.83$2,977.20
Hawaii$2,555.64$3,358.86
Iowa$2,981.28$2,296.16
Idaho$2,979.09$2,770.68
Illinois$3,305.48$2,779.16
Indiana$3,414.97$2,261.07
Kansas$3,279.62$3,220.65
Kentucky$5,195.40$4,633.59
Louisiana$5,711.34$6,154.60
Maine$2,953.28$2,823.05
Maryland$4,582.70$3,832.63
Massachusetts$2,678.85$1,510.17
Michigan$10,498.64$6,430.11
Minnesota$4,403.25$3,498.54
Missouri$3,328.93$2,885.33
Mississippi$3,664.57$4,087.21
Montana$3,220.84$3,602.35
North Carolina$3,393.11$2,936.69
North Dakota$4,165.84$2,668.24
Nebraska$3,283.68$3,837.49
New Hampshire$3,151.77$1,615.02
New Jersey$5,515.21$2,754.94
New Mexico$3,463.64$4,458.30
Nevada$4,861.70$3,662.09
New York$4,289.88$2,428.24
Ohio$2,709.71$1,867.19
Oklahoma$4,142.33$3,437.34
Oregon$3,467.77$3,220.12
Pennsylvania$4,034.50$2,605.22
Rhode Island$5,003.36$5,602.63
South Carolina$3,781.14$3,178.01
South Dakota$3,982.27$2,940.29
Tennessee$3,660.89$3,283.42
Texas$4,043.28$3,263.28
Utah$3,611.89$2,965.57
Virginia$2,357.87$2,061.53
Vermont$3,234.13$2,195.71
Washington$3,059.32$2,568.65
West Virginia$2,595.36$2,120.80
Wisconsin$3,606.06$3,926.20
Wyoming$3,200.08$3,496.56
Median$3,660.89$3,073.66

GEICO full coverage rates are lower than the average cost of coverage in each state. Still, a collision damage waiver can cost hundreds or even thousands more than liability insurance alone.

Choosing Collision Damage Waiver extends your Collision Damage Waiver coverage to your rental vehicle and can help you avoid paying up to $60 per day for rental car insurance.

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Should I switch to GEICO for auto insurance?

With GEICO, rental car protection is included in your insurance. But that’s also the case with many other auto insurers, and that shouldn’t be the only reason why you choose GEICO for your auto insurance.

You should shop around and compare auto insurance rates to know if GEICO is your best insurance option.

You can go to one of the many GEICO locations near you or get a free quote from the company online. Compare the cost of coverage at GEICO to the cost of car insurance from multiple providers to make sure you’re not overpaying for car insurance.

Does Geico Auto Insurance Cover Rental Cars Frequently Asked Questions

Want to learn more about rental car coverage? Let’s take a look at some answers to frequently asked questions for more information.

Do I need car insurance to rent a car?

No, you won’t do that. In addition to rental car insurance from the rental company, you also need a driver’s license.

Do credit card companies offer rental insurance?

It depends on the credit card network. Visa and Mastercard are two credit networks that offer car rental insurance to their customers.

Is car insurance higher for a rental car?

Yes of course. Auto insurance costs an average of $94 per month. Rental car insurance now costs between $5 and $60 a day.

The car insurance model for rental cars is designed for short-term use and private car insurance is cheaper.

Does travel insurance cover rental cars?

It depends on your travel insurance. Travel insurance with rental car collision and collision damage waiver provide insurance for the rental. However, high expenses can still arise.

How much is the rental car fee per month?

The fee for a rental car ranges from $2 to $15 per month, but you can pay more in your country. Auto insurance companies are known to charge more expensive rates for different states.

How can I save money with GEICO car insurance?

If you’re concerned about the cost of GEICO auto insurance, check out available discounts. GEICO is known for its customer insurance plans, but did you know you can save money by bundling GEICO home insurance with auto insurance?

By adding other insurance products to your insurance bill, you can save at least 10% on GEICO auto insurance. Drivers renting an apartment should also consider GEICO renters insurance. You can use renters insurance to protect personal items that are stolen from your home or vehicle.

But the quickest way to get cheap GEICO insurance is with a clean driver’s license and excellent credit. You can save up to 35% if both factors are part of your car insurance.

Can the rental car fee cover the rental cost of the car insurance?

Yes, it’s possible. GEICO Rental Insurance does not cover refunds. However, you can add a rental car fee to your policy to recover the money you spent on a rental car.

Since car insurance has a refund, you can have it refunded.

Car Rental Refund Insurance is an option that offers a refund from the car insurance company after you pay for the rental while your vehicle is being repaired.

Does Geico Auto Insurance Cover Rental Cars: What matters

While GEICO doesn’t offer specific car insurance for rental cars, GEICO does give you a few choices. When you have auto insurance with GEICO, your coverage extends to your rental vehicle. However, if you do not have full insurance coverage for your vehicle, you may need to purchase rental car insurance through the rental company.

If your budget allows, you should purchase both collision and collision insurance for your vehicle to ensure it is protected in virtually all conditions.