Does My Kentucky Auto Policy Cover a Rental Car?

Yes — in most cases, your Kentucky auto insurance policy extends to a rental car you’re driving for personal use. Your liability, comprehensive, and collision coverages typically follow you into the rental car. What’s often NOT covered: the rental company’s loss of use fees, administrative fees, and diminished value charges — which is why the rental counter still pushes their coverage.

What Your Kentucky Auto Policy Actually Extends

Kentucky personal auto policies extend to rental cars under the ‘temporary substitute’ or ‘non-owned auto’ provisions:

• Liability — pays for injuries and damage you cause to others (mandatory under KY law)
• Collision — pays for damage to the rental if you have collision on your own policy
• Comprehensive — pays for theft, fire, hail, deer on the rental if you have comp on your own policy
• PIP / medical payments — pays your injuries in the rental
• Uninsured motorist — covers you if hit by an uninsured driver while in the rental

What Your Policy Usually DOES NOT Cover

Rental companies collect additional fees after a claim that your standard auto policy often won’t reimburse:

• Loss of Use — the rental company’s lost income while the car is being repaired (often $30-$100/day for weeks)
• Diminished Value — the reduced resale value of the repaired vehicle
• Administrative Fees — inspection and claim processing fees the rental adds
• Towing and Storage — sometimes not covered fully

Should You Buy the Rental Counter’s Coverage?

Loss Damage Waiver (LDW) at the counter is expensive ($20-$40/day) but covers the gaps above and eliminates the deductible on your own policy. Alternatives:

• Premium credit card benefits (Chase Sapphire, Amex Platinum, others) — many include primary rental coverage as a card perk
• Standalone rental car policy from insurers like American Modern (a few dollars a day)
• Ask Boswell to add a rental car endorsement to your existing policy if you rent frequently

Business Use, International, and Truck Rentals

Coverage gets messier for:

• Business rental (rented under a business name or used for work) — personal policy may not extend
• International rentals — personal policies typically exclude coverage outside US/Canada/Mexico
• Trucks over 3/4 ton or moving trucks — often excluded
• Long rentals (30+ days) — often lose ‘temporary’ status and become excluded

Written by Blake Boswell, owner of the Boswell Insurance Agency, Murray, KY.