Does Liberty Mutual Offer Rental Car Insurance?

Last Updated on October 16, 2023

If you’re renting a car and have Liberty Mutual car insurance, then you may be covered.

When you rent a car, you get the same rental car insurance coverage as you have on your personal vehicle, including the same coverages and limits.

Keep reading to discover everything you need to know about Liberty Mutual rental car insurance and how it works.

Table of Contents:

• Yes, Liberty Mutual Provides Rental Car Insurance
• How Liberty Mutual Rental Car Insurance Works
• Liberty Mutual Rental Car Insurance Exclusions and Limits
• Should You Buy the Rental Company’s Insurance?
• Liberty Mutual Offers Rental Reimbursement Insurance

Yes, Liberty Mutual Provides Rental Car Insurance

Liberty Mutual extends your personal auto insurance policy to cover a standard rental vehicle.

If you’re renting a car, SUV, or ordinary truck, then your Liberty Mutual policy should extend to cover that vehicle.

The same coverages apply to your rental car as your personal vehicle. If you have minimum liability insurance on your personal vehicle, for example, then you only have minimum liability insurance on your rental vehicle. If you drive a 10-yeard old vehicle with just $5,000 of collision coverage, then you only have $5,000 of collision coverage on your rental vehicle.

Liberty Mutual does not cover non-standard rental vehicles, including RVs, moving trucks, and motorcycles. You may need to add coverage to your policy or buy coverage from the rental company to stay insured.

How Liberty Mutual Rental Car Insurance Works

Liberty Mutual’s rental car insurance works like your own insurance. If you get into an accident while driving your rental car, then you call Liberty Mutual to initiate the claim. Liberty Mutual processes the claim as they would process a personal claim. After an at-fault accident, you could pay higher rates on your Liberty Mutual policy.

Here’s how Liberty Mutual covers a standard rental car:

• When renting a vehicle, the rental car company may ask for the name of your insurance provider. If you have a valid Liberty Mutual policy, then that policy should extend to your rental car.
• When driving your rental car, Liberty Mutual provides the same insurance and coverage as you have on your personal policy. If you have full coverage car insurance, then your rental car has full coverage car insurance up to the same limits. If you have liability-only coverage, then your rental car only has liability coverage, which means it only covers damage you cause to other people and property, but not damage to the rental car itself.
• If you need to make an insurance claim, contact Liberty Mutual. Liberty Mutual processes the claim like they would process a claim on your personal vehicle. You pay a deductible, and Liberty Mutual covers all remaining costs of repairing or replacing the rental vehicle, up to the limits of your policy.
• If you were involved in an at-fault accident, then Liberty Mutual will raise your premiums after a rental car claim (unless you have accident forgiveness). You’ll pay higher insurance premiums for three to five years because Liberty Mutual considers you a higher-risk driver to insure.

Liberty Mutual Rental Car Insurance Exclusions and Limits

Liberty Mutual provides rental car insurance to most drivers in most situations. However, there are certain limits and exclusions to consider:

Only Covers Rentals in the United States and Canada: Generally, Liberty Mutual only extends rental car insurance to car rentals in the United States, United States territories, and Canada. If you’re renting a car in Mexico, then you may want to buy added coverage from the Mexican rental car company – or add Mexico coverage to your Liberty Mutual policy.

Does Not Cover Non-Standard Vehicle Rentals: A standard Liberty Mutual policy does not cover you when renting an RV, a moving truck, or a similar alternative vehicle.

You May Not Have Enough Insurance: If your Liberty Mutual policy has low limits, then your rental car may be under-insured. If you drive a 15-year old vehicle that’s only worth $4,000, for example, then your Liberty Mutual policy only covers up to $4,000 of collision and comprehensive coverage. Most rental cars are worth more than $4,000. If you crash your $20,000 rental car and it’s a total loss, for example, then Liberty Mutual will cover $4,000 of this cost (minus your deductible), and you could be liable for paying the remaining $16,000 out of pocket.

You May Not Have Sufficient Coverage: Some drivers have liability-only coverage, which means their Liberty Mutual policy only includes bodily injury and property damage liability coverage. This is fine on older vehicles. However, it’s not the right choice for rental vehicles. If you have a liability-only policy and rent a vehicle, then Liberty Mutual only covers damages you cause to other people and property. It does not cover the cost of repairing or replacing your rental vehicle. After an at-fault accident, you could be responsible for covering all damage to the vehicle out of pocket.

Check your Liberty Mutual policy to verify coverages and limits. Even if you have Liberty Mutual car insurance, you may wish to buy the CDW/LDW from the insurance policy – or adjust your Liberty Mutual policy before renting the vehicle.

Should You Buy the Rental Company’s Insurance?

At the desk, the rental car company asks if you want to buy a collision damage waiver (CDW) or loss damage waiver (LDW). These optional coverages may or may not be worth it, depending on your situation.

Here’s how the rental car company’s insurance works:

• All rental car companies offer a collision damage waiver (CDW), also known as a loss damage waiver (LDW).
• In exchange for a daily fee (typically $10 to $50), the rental car company waives your responsibility for any damage to the vehicle. You do not need to pay for repairs, cover the loss of the vehicle out of pocket, or even pay your deductible if you get into an accident with your rental car.
• It may be worth it to buy the LDW/CDW coverage if you don’t want to use your own Liberty Mutual insurance policy to cover the vehicle. Maybe your coverages are low, for example. Or, maybe you don’t want the stress of an accident appearing on your driver’s record and raising your premiums.
• It’s also worth it to buy the LDW/CDW if you don’t want to pay the deductible after a loss. A typical deductible is $250 to $1,000. When you buy the LDW/CDW, you do not need to pay the deductible.
• Rental car companies also offer additional coverages for added protection, including personal possession coverage and medical insurance coverage. If you already have homeowners or renters insurance, then it covers possessions in your rental vehicle, which means you can avoid personal possession coverage. If you already have health insurance, then you do not need to buy medical insurance from the rental car company.

Liberty Mutual Offers Rental Reimbursement Insurance

Liberty Mutual has a separate type of car insurance called rental reimbursement insurance. This coverage works differently than the rental car insurance above.

Liberty Mutual’s rental reimbursement coverage compensates you for the cost of renting a vehicle after a covered loss.

Here’s how Liberty Mutual’s rental reimbursement coverage works:

• You add rental reimbursement coverage to your Liberty Mutual policy. Typically, it costs $5 to $15 per month. It’s optional in all states. You must have full coverage car insurance to add rental reimbursement coverage to your policy.
• If your personal vehicle is involved in an accident or any type of loss, then Liberty Mutual activates your rental reimbursement coverage.
• You rent a car and pay for the rental car upfront. Then, Liberty Mutual reimburses you for the cost of renting that vehicle.
• Rental reimbursement coverage has a maximum daily limit that varies between policies. You can’t rent a Lamborghini and expect it to be covered, for example, but Liberty Mutual should cover $50 to $100 per day in rental car costs, depending on your area and the value of your personal vehicle.

Final Word on Liberty Mutual Rental Car Insurance

Liberty Mutual, like most insurers, extends your personal policy to cover any vehicles you rent.

If you’re renting a car and have Liberty Mutual insurance, then your policy applies to your rental car. That means your rental car has all of the same coverages and limits as your personal vehicle.

Liberty Mutual will cover the cost of renting a car if you have rental reimbursement coverage, assuming your personal vehicle was involved in a covered loss.

Check your policy or contact Liberty Mutual today to verify your rental car coverage.