if you have full-coverage insurance. That said, if you only have liability insurance but don't have comprehensive or collision coverage on your policy, you’ll be liable for any damage done to the rental car.

So, is

rental car insurance

actually “a waste of money?” Well, that depends on what kind of GEICO auto insurance you carry. Before you buy any rental car insurance, be sure to check your

car insurance

policy to see if you’re covered for rental cars. Here’s what GEICO policyholders need to know about buying rental car coverage.

MORE:

How to lower your GEICO car insurance costs

Does GEICO offer rental car insurance?

Yes, but depending on your GEICO car insurance, you may need to buy any extra coverage specifically for a rental car.

Standard

full coverage insurance

from GEICO should cover you when driving a rental car. That said, you should always check with your GEICO representative to ensure your coverage extends to a rental car. If so, you can decline the coverage options that your rental car company is offering you.

If you don’t have a GEICO full coverage policy, you’ll need to consider buying the extra coverage from your rental car company.

Liability insurance

only covers other drivers’

bodily injury costs

and

property damage bills

when you cause an accident, so it won’t extend to the physical damage of a rental car.

MORE: How to avoid being unfairly charged for rental car damage

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GEICO rental reimbursement

GEICO policyholders can also get

rental reimbursement coverage

, which is different from rental car insurance. Rental car reimbursement covers the cost of a rental car if your vehicle is inoperable due to a covered accident.

GEICO partners with Enterprise to offer this coverage, but there are per-day and per-claim limitations to GEICO’s rental car reimbursement coverage. Check your

insurance declaration page

for all the details on what is covered under your car insurance policy.

MORE:

Does GEICO sell non-owner car insurance?

Is it worth it to get insurance on a rental car?

It depends—if you have full coverage from GEICO, you likely will not need to buy extra coverage when renting a car. Also, if you’re paying for your rental with a credit card, check to see if rental car coverage is included from your credit card company—many offer this worthwhile incentive!

You’ll likely need to buy additional rental car coverage under the following circumstances:

You have no car insurance whatsoever.

You only carry liability coverage.

Your collision and comprehensive coverages both have high deductibles.

GEICO tells you that your policy does not cover rental cars.

You’re renting a vehicle for business purposes, or renting a commercial vehicle.

Your regular policy doesn’t offer add-ons that you can get with rental coverage, including medical payments coverage (MedPay), roadside assistance, personal injury protection, or travel expenses coverage.

Depending on your circumstances, your rental agency may offer you a collision damage waiver (CDW) or a loss damage waiver (LDW). A collision damage waiver covers any damage sustained in a collision, while a loss damage waiver lowers any financial responsibility if your rental car is damaged or stolen.

Unfortunately, these are usually overpriced—but you’ll likely need them if you don’t carry comprehensive or collision coverage on your policy. Why? Because paying for overpriced waivers will pale in comparison to paying out of pocket for damages to your rental car if you skip the coverage altogether.

MORE:

How to cancel GEICO car insurance

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