Does your car insurance cover rentals overseas?

Most personal auto insurance policies written in the U.S. do not provide coverage for driving a rental car outside of the United States, its territories, or Canada. That means, while driving abroad, you will have:

• No liability coverage
• No collision coverage
• No comprehensive coverage
• No roadside assistance

Some policies may offer very limited protection in certain countries, but this is the exception, not the rule. Always check with your insurer well before you go on your trip.

• Canada: Most U.S. policies extend coverage on your insured vehicle into Canada (for short-term personal travel), but you should still notify your insurer before crossing the border.
• Mexico: U.S. coverage does not apply in Mexico. You’ll need to purchase Mexico-specific auto insurance from an insurer.

Many international rental companies offer several types of coverage while driving abroad, such as:

• Collision Damage Waiver (CDW): Waives your responsibility for damage to the rental car.
• Loss Damage Waiver (LDW): Similar to CDW but may also include theft protection.
• Supplemental Liability Insurance (SLI): Provides coverage for damage or injury you cause to others.
• Personal Accident Insurance (PAI): Covers medical expenses for you and passengers.

In some countries, CDW and liability insurance are legally required and included by default, but coverage limits may be low (and should be reviewed).

Many travel-focused or premium credit cards offer rental car insurance, often globally. However, you should keep in mind that:

• Some offer primary coverage (you don’t need to involve your personal insurer), while others are secondary (they only cover what your insurer doesn’t).
• Coverage may exclude specific countries (e.g., Ireland, Israel, Jamaica, etc.).
• Rental periods typically must be under 15–30 days.
• Coverage often excludes luxury, antique, exotic, and large vehicles.

Important: You typically must use the card to pay for the rental and decline the rental agency’s coverage to activate this benefit. Be sure to check with your credit card provider to understand how it works before doing this.

Every country has its own rules. For example:

• Italy and Ireland: Often require CDW, even if you have credit card coverage.
• Australia: Allows you to use your own insurance, but it must be documented.
• United Kingdom: Often includes minimum liability, but coverage may be too low to be adequate.

Always check in advance what’s legally required in the country you’re traveling to and what’s included from the rental car company.

If you're involved in an accident:

1. Call local emergency services (if needed).
2. Contact the rental company immediately.
3. Document the scene (photos, names, license plates, police reports).
4. Notify your credit card company or insurer, if using their coverage.

Be prepared for delays in claims processing and potential out-of-pocket charges while the incident is investigated.

Be sure to ask these questions before you rent a car and drive abroad:

• Is my U.S. insurance policy valid in this country?
• What coverage is included in the rental rate?
• What am I responsible for in case of an accident?
• Is liability coverage included or separate?
• Do I need an International Driving Permit (IDP)?

Before you pick up your rental abroad, confirm your coverage. Whether it’s through a credit card, travel insurance, or the car rental company itself. The right plan can save you from a financial headache.