What Auto Owners Car Insurance Actually Covers When You Rent a Car

Auto Owners covers rental cars only if you have collision or comprehensive coverage on your own vehicle

Auto Owners does not automatically cover rental cars under any policy. Whether your rental is covered depends entirely on what coverage you already have. If you carry collision or comprehensive coverage on your own car, Auto Owners will extend that same coverage to a rental vehicle you use temporarily — but only while your own car is being repaired after a covered loss. If you have only liability coverage, rental cars are not covered at all.

The coverage works this way: when your car is damaged and in the shop, Auto Owners will pay for damage to a rental car the same way it would pay for damage to your own vehicle, up to the same deductible. You do not need to buy separate rental coverage through the rental company if you already have collision or comprehensive. However, you do need to notify Auto Owners that you are renting, and you need to understand what the rental company's own coverage does and does not include.

Key Takeaways

• Auto Owners rental coverage applies only if you have collision or comprehensive coverage on your own vehicle, and only while your car is being repaired.
• Your Auto Owners deductible applies to the rental car, so if you have a $500 deductible, you pay $500 toward rental damage just as you would for your own car.
• Rental companies offer their own damage waivers at checkout, which you may not need if Auto Owners is already covering you — but you should understand what each covers before declining.
• Auto Owners rental coverage does not include personal belongings left in the rental car, fuel, or traffic violations and parking tickets you incur while driving it.
• You must tell Auto Owners you are renting a car and provide the rental company's name and the dates you need coverage.

When Auto Owners rental coverage actually applies

Auto Owners rental coverage is triggered only in a specific situation: your own vehicle has been damaged in a way that your collision or comprehensive coverage would pay for, and it is in the shop being repaired. The moment your car is fixed and you stop renting, the coverage ends. This is not coverage you can use to rent a car for a vacation or a business trip — it exists only to bridge the gap while your own vehicle is unavailable.

The rental car must also be a passenger vehicle of similar size and type to your own. Auto Owners will not cover a moving truck, a luxury car you upgraded to, or a vehicle you rented for commercial purposes. The rental must be a reasonable substitute for the car you normally drive.

How your deductible works with a rental car

When you rent a car under Auto Owners coverage, your own policy's deductible applies to any damage the rental sustains. If you have a $500 collision deductible and the rental is damaged, you pay $500 and Auto Owners pays the rest of the repair bill (up to the rental company's actual repair costs). If you have a $1,000 deductible, you pay $1,000.

This is important because rental companies often push their own damage waiver at the counter — a product that typically costs $15 to $30 per day and eliminates your out-of-pocket cost if the rental is damaged. If you already have Auto Owners coverage with a low deductible, you may not need the rental company's waiver. If your deductible is high, the waiver might be worth the daily cost. The math depends on your specific deductible and how many days you will have the rental.

What Auto Owners rental coverage does not include

Auto Owners covers only physical damage to the rental car itself — the body, glass, interior, and mechanical parts. It does not cover personal belongings you leave in the rental, such as a laptop, phone, or luggage. If those items are stolen or damaged, you would file a claim under your homeowners or renters insurance, not your auto policy.

The coverage also does not pay for fuel, tolls, parking tickets, traffic violations, or late fees. If you return the rental with an empty tank, you pay the rental company's fuel surcharge. If you get a speeding ticket while driving the rental, you pay it — Auto Owners does not cover traffic citations. Rental companies may also charge you for damage you did not cause, such as a ding in the door that was already there; if you dispute the charge, you will need to work directly with the rental company, not through Auto Owners.

How to use Auto Owners rental coverage

When your car is damaged and you know you will need a rental, contact Auto Owners before you rent. Tell them the rental company's name, the dates you need the car, and the reason for the rental (your car is in the shop). Auto Owners will confirm that your collision or comprehensive coverage applies and will provide you with a confirmation number or letter to show the rental company.

At the rental counter, tell the agent that you have your own collision coverage and do not need the rental company's damage waiver. Show them the confirmation from Auto Owners. The rental company will note this in your contract. If the rental is damaged, you report it to both the rental company and Auto Owners, just as you would report damage to your own car. The rental company will send you a bill for repairs, and you will file a claim with Auto Owners.

Rental coverage from the rental company versus Auto Owners

Rental companies offer two main products at checkout: a damage waiver (sometimes called a loss damage waiver or LDW) and liability coverage. The damage waiver eliminates your responsibility for damage to the rental car. Liability coverage protects you if you damage someone else's property or injure someone while driving the rental.

If you have Auto Owners collision coverage, you already have liability coverage through that policy, so you do not need the rental company's liability product. The question is whether you need their damage waiver. If your Auto Owners deductible is $500 and the waiver costs $20 per day, the waiver makes sense only if you expect to keep the rental for more than 25 days. For a typical repair (a few days to a week), your Auto Owners coverage is usually the cheaper option.

One exception: some rental companies exclude certain types of damage from their waivers — such as damage from off-road driving or towing — but still charge you if that damage occurs. If you are unsure whether your rental activity is covered, buying the waiver removes the risk. For a standard repair rental, Auto Owners is usually sufficient.

What happens if you do not have collision or comprehensive coverage

If your Auto Owners policy includes only liability coverage, you have no rental car coverage through Auto Owners. You must buy the rental company's damage waiver if you want protection against damage to the rental. This is one reason why collision and comprehensive coverage are valuable even if your car is older — they provide this rental protection automatically, and they protect you in other situations (theft, weather, vandalism) that liability alone does not cover.

If you are renting a car and you do not have collision or comprehensive coverage, the safest choice is to purchase the rental company's damage waiver. The cost is higher than using your own coverage, but it is the only protection available to you.

Frequently Asked Questions

Does Auto Owners cover rental cars if my car is just in the shop for maintenance?

No. Auto Owners rental coverage applies only when your car is being repaired after a covered loss — an accident, theft, weather damage, or vandalism. Routine maintenance does not trigger rental coverage. If you need a car while yours is in the shop for an oil change or inspection, you would need to buy the rental company's coverage.

What if the rental car is damaged and I did not cause it?

You still report the damage to both the rental company and Auto Owners. Your deductible still applies. If you believe the damage was pre-existing and the rental company is wrongly charging you, you will need to dispute it directly with the rental company — Auto Owners will not intervene in a disagreement about whether damage was your fault.

Can I use Auto Owners rental coverage for a long-term rental while my car is being repaired?

Yes, as long as your car is genuinely in the shop. There is no stated limit on how long the rental can last. However, if the repair takes longer than expected and the rental company charges you extra, Auto Owners will only pay for the rental period that corresponds to your car's repair time. You would be responsible for any additional days beyond that.

Does the rental company need to know I have Auto Owners coverage?

Yes. Tell the rental agent that you have your own collision coverage and provide the confirmation from Auto Owners. This prevents the rental company from charging you for their damage waiver and ensures they know how to process a claim if the car is damaged.

What if I rent a car in another state — does Auto Owners still cover it?

Yes. Auto Owners coverage follows you across state lines. The same rules explore: you must have collision or comprehensive coverage, your car must be in the shop, and your deductible applies to any damage. Notify Auto Owners before you rent, just as you would for an in-state rental.