In this blog, the Poole Law Group answers questions about rental car insurance, personal injury protection (PIP) insurance, state requirements for auto insurance coverage, and more.

After an accident involving a rental car, one of the first questions one asks is whether or not their personal auto insurance covers rental vehicles. The simplest way to avoid this stressful situation is by ensuring that you have enough insurance coverage while renting a vehicle. Not only is this an important factor in protecting yourself if you get into an accident, it also offers peace of mind.

Our Maryland car accident lawyer offers this blog as a comprehensive guide to help you understand your coverage and address related concerns.

For specific information related to your personal injury case, please call our Hagerstown, MD or Frederick, MD personal injury lawyers at 301-790-3600.

Does My Insurance Cover Rental Cars? Advice from a Frederick, MD Personal Injury Attorney

In many cases, yes, your personal auto insurance policy will extend to rental vehicles. If you have comprehensive, collision, and liability coverage, your insurance may cover damages or injuries up to the limits of your policy. However, some circumstances may complicate your insurance policy coverage; a few of these situations are discussed below.

Luxury Cars

If you are renting a luxury car, ATV, or other unconventional type of vehicle, you may need to purchase additional insurance from the rental company. Generally, this can be done over the counter when you first get your vehicle. You can often call the rental car company to add supplemental coverage at any time during your rental. Luxury vehicles, recreational sports vehicles and vehicles that introduce an element of risk will generally require additional insurance.

Business Rental Cars

If you’re renting a car for business purposes—for example, on a business trip—your personal policy may not apply. Check the rental agency’s business auto policy to see if it covers damages resulting from the use of a rental car during company business. Generous business auto policies will not only cover injuries and property damage to the rental car, but also loss of business and time off of work.

If you need more insurance during a business trip, you may be able to buy additional insurance through the car rental company or through the credit card company used to make the rental purchase.

Rental Reimbursement

If your car is being repaired after an accident, rental reimbursement coverage will pay for a rental car. Without this additional insurance add-on, you’ll likely have to pay out-of-pocket. Check your auto insurance policy to determine if this coverage applies. Also, be sure to note if your car insurance will cover the cost of the rental itself; insurance policies only cover rental car costs after you have submitted a qualifying claim.

Do you carry Frederick, MD auto insurance? Policies in Frederick, MD, often follow these general principles, but you may need to check with your local agent for specifics. Call the Poole Law Group at 301-790-3600 for a free claim consultation.

FAQs About Personal Injury Protection (PIP) in Maryland

What is PIP Insurance?

Personal Injury Protection (PIP), also known as "no-fault insurance," is one of several sources of payment for car accident injuries. This type of personal injury insurance pays for medical expenses, lost wages, and other damages after an accident, regardless of fault. It can be applied to medical costs and lost wages for both driver and passenger(s), family members who live with the insured, anyone consensually using the insured's vehicle, and pedestrians injured by the insured's vehicle.

Is PIP required in Maryland?

In Maryland, PIP insurance is not required. (PIP insurance is an optional add-on in most states and mandatory in others.)

While personal injury protection (PIP) is not mandatory in Maryland, state law requires all insurance companies to offer up to the coverage limit of $2,500 in PIP to cover medical expenses, lost wages and funeral expenses after a car accident. (Note that PIP insurance does not cover property damage or non-economic losses like pain and suffering claims.)

Do I need PIP if I have health insurance or Medicare?

Even with health insurance and/or Medicare, PIP can provide additional benefits if you get injured in an auto accident. In contrast to private insurance and Medicare, PIP is a type of coverage that includes passengers or lost wages in the event of an auto accident. While it may be redundant in some cases, PIP covers a wider range of expenses stemming from car accidents.

Is comprehensive and collision coverage the same as PIP?

No — and in fact, these are three separate types of insurance.

Comprehensive insurance covers damage to your car from non-collision incidents like theft, vandalism and natural disaster events; collision insurance covers damage to your vehicle regardless of fault, while liability insurance covers damage or injuries caused to others in an accident. Full coverage may require all three types of insurance as well as bodily injury liability insurance, which calculates pain and suffering as part of total damages.

Does PIP cover medical treatment if I am hit by an uninsured driver?

Yes, PIP covers medical expenses and lost wages arising from accidents involving uninsured drivers. Note that PIP is different from comprehensive and collision insurance, and that neither of these types of coverage includes non-economic damages like pain and suffering.

Does PIP cover pain and suffering?

No, PIP does not cover non-economic damages like pain and suffering. Pain and suffering are typically covered through bodily injury liability insurance against another driver’s insurance, and only in cases where the other driver is at fault. Ask your Frederick, MD personal injury attorney about the “multiplier method,” and how it may apply in your personal injury case.

Why is the other insurance company calling me?

After an accident, the other party’s insurer may contact you for details about the incident or to offer a settlement. Be cautious and consult with an attorney before accepting any offers. If you don’t know who your insurance adjuster is, contact your insurer’s claims department for clarification. Having clear communication with your adjuster ensures smoother claim processing.

If you feel the settlement offer for your totaled car is too low, gather evidence of its market value (e.g., repair receipts or comparable listings) and negotiate with the insurer.

For residents in Frederick, MD—or anywhere else—consulting with a personal injury attorney can shed light on the types of insurance coverage applicable to your case. We highly recommend reviewing your insurance policy today to better understand your benefits and potential coverage gaps.

Does My Auto Insurance Cover Rental Cars?