Rental Vehicle Coverage

NOTE: The following information applies to New York residents only.

When You Rent A Car

Car rental agreements vary from one car rental company to another. However, all car rental companies must maintain the minimum coverages required by law. 

Car rental companies may sell a Collision Damage Waiver (CDW), also known as "Optional Vehicle Protection" (OVP). For rentals of 30 consecutive days or less, car rental companies in New York State can sell CDW, or, if not purchased, charge a renter for the total value of a stolen (lost) or damaged rental vehicle. The daily cost of the CDW may be as high as $12, depending on the value of the vehicle.

If you are currently insured under a New York auto insurance policy and you rent a car for 30 days or less anywhere in the United States, its territories and possessions, or Canada, you do not need to buy a CDW/OVP from the car rental company regardless of whether you have collision or comprehensive coverage on your own car. At present such coverage is currently provided without any extra charge. 

Many credit card companies also provide some form of "collision damage coverage" to their cardholders for vehicles they rent with that card. This is separate from any other coverage and usually covers losses only in excess of amounts collectible under other existing coverages. It should be noted that credit card companies do not extend this coverage to all vehicles. You may wish to check with your credit card company to verify exactly what protection it provides and what types of vehicles are covered. Coverage under these agreements is regulated under the New York State Insurance Law and must be underwritten by a licensed New York State insurer.

In addition, some car rental companies offer higher liability limits than the required 25/50/10 at an additional cost.  If you already have a policy with higher liability limits, it will provide the coverage while renting a car. 

Some rental car companies are also licensed to sell additional accident and health coverage (beyond required No-Fault benefits) and coverage for personal items stolen from the vehicle. These coverages are also regulated under the New York State Insurance Law and must be underwritten by a licensed New York State insurer.

The rental vehicle company must tell renters about both credit card insurance and motor vehicle insurance policies under which the renter may already have rental vehicle coverage.

Please note that peer -to-peer car sharing companies, such as Turo and Getaround, are not rental car companies and are subject to other laws.  These companies must maintain a group insurance policy that provides liability insurance for a vehicle owner and vehicle driver while the vehicle is being used and operated through the peer-to-peer car sharing programs.  These companies also may sell OVP like rental car companies.