Do I Need to Buy Rental Car Insurance in Michigan?

Michigan Rental Car Insurance

Renting a car is common for those on vacation or simply in need of a temporary replacement vehicle. However, understanding rental car insurance options can be confusing.

In Michigan, your personal auto insurance policy likely extends liability coverage and even physical damage to a rental car that is being used in place of a vehicle you insure, but it’s crucial to review your policy or consult your agent to be educated on any possible gaps in protection. Most auto insurance policies have exceptions or limitations when it comes to covering a replacement vehicle. 

Things to keep in mind when renting a car with a Michigan auto insurance policy:

Your limit of liability follows you, so if you only have $50,000 of personal bodily injury on your auto policy, that will be the same on the rental.

Your deductibles and all surcharges for at-fault accidents and claims will follow you both to the rental car and then back onto your policy if your insurance has to pay a claim. 

If your vehicle doesn’t have collision coverage, the rental car will not either unless you purchase it from the rental company.

Some credit cards cover physical damage to rental cars, but they have limitations and exclusions. Limitations and exclusions are based on vehicle size, usage, territory, and value of the vehicle being rented.

Most auto policies will not cover loss of use or diminished value of the rental car if you damage it. Some insurance companies have endorsements that you can add to your policy and some do not. To have peace of mind when using a rental car, make sure to contact your agent before doing so.