Renting a car at Orlando International Airport or anywhere else in Florida often comes with a moment of confusion at the rental counter. The agent offers you coverage and you are not sure whether your existing auto insurance already covers you. The answer depends on what type of policy you carry, what your specific coverages include, and how you are using the rental vehicle. This article explains exactly how rental car coverage works under Florida auto insurance policies.

In most cases, your personal auto insurance policy extends to rental cars when you are renting for personal use within the United States. Here is how each component of your policy typically applies to a rental vehicle:

If your Florida auto insurance policy includes Bodily Injury Liability (BIL) or Property Damage Liability (PDL), these coverages typically extend to a rental car. This means if you cause an accident while driving the rental, your liability coverage will apply up to your policy limits. Florida’s minimum PDL of $10,000 may not be sufficient for a serious accident, which is why many drivers carry higher liability limits. 

If you carry collision coverage on your personal auto policy, it generally extends to a rental car for damage caused by an accident. Your deductible applies the same way it would on your own vehicle. This means if the rental car is damaged in a collision, your collision coverage will pay for repairs minus your deductible.

Comprehensive coverage on your personal policy typically extends to a rental as well, covering theft, vandalism, weather damage, and other non-collision events. Given Florida’s weather and the high rate of vehicle theft in some parts of the state, comprehensive coverage is particularly valuable.

Your Florida PIP coverage follows you as a person, not your specific vehicle. This means your PIP benefits apply if you are injured while driving a rental car, just as they would in your personal vehicle. The same 14-day rule applies: seek medical treatment within 14 days of an accident to preserve your right to PIP benefits.

There are several important situations where your existing Florida auto insurance may not cover a rental vehicle:

Personal auto insurance policies typically exclude coverage when a vehicle is being used for business purposes. If you are renting a car while traveling for work, your personal policy may not apply. You should check with your employer’s commercial auto policy or purchase rental coverage in this situation.

Most Florida auto insurance policies do not extend coverage to rental vehicles outside the United States. If you are renting a car in another country, you will typically need to purchase coverage through the rental company or a travel insurance policy.

Even if your collision or comprehensive coverage pays for physical damage to a rental car, the rental company may charge you for loss of use — the revenue they lose while the vehicle is being repaired. They may also charge administrative fees and diminished value. Standard personal auto policies often do not cover these charges, which can be substantial.

If you carry only the Florida minimum of PIP and PDL, you have no collision or comprehensive coverage on your own vehicle, and this gap extends to rental cars as well. Any physical damage to the rental car would come out of your pocket unless you purchase the rental company’s coverage.

If you carry a full coverage auto insurance policy including collision, comprehensive, and liability, the rental company’s Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is generally redundant for personal travel within the US. However, it may be worth purchasing if: 

• You carry only minimum coverage and have no collision or comprehensive 

• You want to avoid filing a claim on your personal policy to protect your record 

• The rental company charges higher-than-expected administrative or loss of use fees 

• You are renting for business purposes and your personal policy excludes business use

Rental reimbursement is a separate optional add-on to your Florida auto insurance policy. It does not cover damages to a rental car. Instead, it pays for the cost of renting a vehicle while your own car is being repaired following a covered claim. If your car is in the shop after an accident and you need transportation, rental reimbursement coverage pays the daily rental cost up to your policy’s limit.

SunKey Insurance can review your current policy to confirm exactly what rental-related coverage you have and whether adding rental reimbursement makes sense for your situation. Call 877-786-5391 or visit sunkeyinsurance.com.