Usually, no. Your personal car insurance policy generally covers the vehicle listed in your policy, not a rental car. When you hire a car, the protection available depends on the rental company’s insurance, any damage waiver you choose and the terms of your rental agreement.
Before driving away, check what is covered, how much excess you may need to pay and whether there are any exclusions.
Does my personal car insurance cover a rental car?
Your personal motor insurance is usually tied to the specific vehicle insured under your policy. This means you generally cannot use your own car insurance to cover damage to a rental car.
For example, if you have comprehensive insurance for your own car and accidentally damage a rental car, your personal policy would not normally pay for the rental car’s repairs.
Instead, you will need to check the insurance and protection provided by the rental company. Some companies include basic cover in the rental price, while others offer additional protection at an extra cost.
What insurance comes with a rental car?
Rental companies may provide different types of protection. The names and coverage can vary, so always refer to the rental agreement.
Type of protection
What it generally covers
Third-party liability
Claims for injury or damage to another person’s property, subject to the policy limits
Collision Damage Waiver (CDW)
Reduces your financial responsibility for damage to the rental car, usually subject to an excess
Theft Protection (TP)
Reduces your financial responsibility if the rental car is stolen, subject to the agreement
Super Collision Damage Waiver (SCDW)
May reduce the excess payable for damage, depending on the rental company’s terms
A CDW or SCDW is not necessarily the same as comprehensive car insurance. It may only reduce the amount you have to pay for certain types of damage. Some parts of the vehicle or situations may still be excluded.
What happens if I damage a rental car?
If the rental car is damaged while you are using it, the amount you need to pay depends on the protection you purchased and the rental agreement.
For example, if your agreement states an excess of RM2,000, you may have to pay up to that amount for an eligible claim. However, the actual amount can depend on the repair cost, type of damage and applicable terms.
Some damage may not be covered by the waiver. Common exclusions can include:
Tyres, wheels and rims
Windscreens and windows
Undercarriage or roof damage
Lost keys or damaged accessories
Damage caused by an unauthorised driver
Accidents involving alcohol or drug use
You may also face additional charges, such as administrative fees, towing costs or loss-of-use charges. These depend on the rental company’s agreement.
If an accident happens, contact the rental company as soon as possible. Follow its reporting procedure, take photos of the damage and make a police report if required by the agreement.
Can travel insurance cover rental car damage?
Some travel insurance policies include a rental car excess benefit. This may reimburse you for the excess you have to pay after the rental car is damaged or stolen.
However, this benefit does not automatically cover every rental car expense. For example, the policy may require you to:
Rent the vehicle from a licensed rental company.
Be named as an authorised driver in the rental agreement.
Have the required motor insurance for the rental vehicle.
Follow the rental agreement and policy conditions.
Provide supporting documents, such as a police report and proof of payment.
Some policies only provide this benefit for overseas trips or exclude domestic rentals. Check the policy wording and benefit limit before relying on it.
What should I check before renting a car?
Before collecting the vehicle, review the rental agreement and confirm these details:
What to check
Why it matters
Included insurance
Understand what protection is already part of the rental price
CDW, SCDW and TP
Check whether these are included or cost extra
Excess amount
Know how much you may have to pay after an incident
Exclusions
Find out which parts of the vehicle or situations are not covered
Authorised drivers
Make sure everyone who will drive is listed in the agreement
Additional charges
Check for towing, administration or loss-of-use fees
It is also a good idea to photograph the car before leaving the rental company’s premises. Record any existing scratches, dents or other damage and make sure the rental company acknowledges them.
Check your rental car protection before driving
Your personal car insurance generally does not extend to a rental car. Before you drive, understand the rental company’s insurance, excess, exclusions and reporting requirements. A quick review of the agreement can help you avoid unexpected costs if something goes wrong.
Can I use my own car insurance when driving a rental car?
Generally, no. Your personal car insurance normally covers the vehicle stated in your policy. Check with your insurer if you are unsure about any additional protection.
Is CDW compulsory when renting a car?
It depends on the rental company and the package you choose. Some companies include CDW in the rental price, while others offer different protection options. Check the agreement before booking.
Do I still have to pay if an accident is not my fault?
You may still be required to pay an excess under the rental agreement, depending on its terms and the circumstances of the accident. Check how the rental company handles claims involving another driver.
Does travel insurance cover the full cost of rental car damage?
Not necessarily. Some travel insurance policies only reimburse the rental car excess, up to a stated limit. They may not cover every repair cost or excluded item.
Nabil Farhan· · 4 min read
