While understanding auto insurance, you must ensure to get all details of your coverage. If you are a rental car owner, knowing about auto insurance becomes critical. USAA is a leading auto insurance provider offering comprehensive policies. Many rental vehicle owners have the question, does USAA cover rental cars on their minds?
If you rent a car in the US, Mexico, or Canada, USAA will cover your insurance throughout the period you rent. The limits and coverages are the same that you apply to your personal car. In the following sections, you will uncover more details about USAA rental car insurance.
Does USAA Cover Rental Cars
Yes, USAA offers coverage for rental cars. This limit is not very different from the one for the primary car when you rent in the US. If you encounter an accident in a rental vehicle, it is necessary to give the deductible on your auto insurance policy. The insurance will handle the rest of up to the limit of the policy.
USAA covers a rental vehicle only if it has been damaged in an accident and your claim has been approved. Also, you must have rental reimbursement coverage. This coverage is an add-on and costs below $10 monthly with USAA.
POINT TO NOTE: The official USAA website has an important statement about rental car coverage. Suppose your auto policy is based in certain places, and you rent and operate your vehicle in these places. In this case, the rental is covered for the liability of physical damage you have received on your specific USAA auto policy. These places include the following:
- The US
- United States Virgin Islands
- Puerto Rico
- Guam
Another situation is if your USAA auto policy is based in the countries mentioned above, but you operate the vehicle in an international location. In this case, the USAA policy for liability and damage will not cover your rental. For example, if the auto policy gives coverage while you use your rental in Canada, your rental agency should give proof of liability coverage.
Also, the USAA auto policy can offer limited coverage for damage or loss occurring at a certain distance from the US-Mexico border. It will not provide the legal insurance needed to travel to Mexico.
USAA Rental Car Reimbursement – Key Details to Know
Here are some important things to note about the rental car reimbursement offered by the USAA.
- The coverage limit offered by the USAA relies on the rental car. This is for a period of a month or 30 days. The cost is $900 for a single claim.
- You will not get reimbursement for car expenditures occurring during leisure trips. It will also not reimburse you for the expenses related to car maintenance.
- The rental reimbursement policy of USAA does not cover expenses related to mileage, gas, and security deposits for your rental car.
- USAA gets directly billed when you rent the vehicle from Budget, Hertz, Enterprise, or Avis. In case of renting a car from any other place, you’ll need to pay from your wallet. But USAA will provide you with reimbursement.
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The Working of the USAA Rental Car Insurance
Here is a thorough breakdown of the different steps involved in USAA rental car insurance.
- You rent a car for people with an active USAA policy. The coverage will be the same as your personal car.
- When involved in a rental car accident or if your car goes missing, make a claim via the USAA.
- It covers your claims via your comprehensive or collision coverage according to the kind of accident. Every full-coverage car insurance policy from USAA comprises comprehensive and collision coverage.
- In case you damage another person’s property or physically harm them, the damages will be covered by USAA via liability insurance.
- The USAA policy has two types of insurance, such as property harm and bodily injury liability insurance for these scenarios.
- If you are held responsible for the accident, you are likely to pay a greater insurance premium. This will only change if you possess accident forgiveness.
Are Rental Cars Covered by USAA Credit Card?
The different branded credit cards by USAA give varying levels of insurance coverage. If you have the Visa and American Express cards of USAA, the benefits incorporate rental car insurance.
Those paying for their rental vehicles with a USAA credit card get secondary coverage for physical damage. Such people will also get coverage for car theft that goes up to $50000.
Secondary coverage implies that the credit card will cover those charges that are not covered by your auto insurance policy.
POINT TO NOTE: If you have secondary coverage because of a USAA credit card, it does not mean that you don’t have to file a claim with your main insurer. It also implies that you will need to give the deductible and that your vehicle insurance premiums may increase.
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Filing a claim via a USAA credit card
If you are filing a claim via a USAA credit card, do so within two months or 60 days of the event. Note that issues like reckless driving or driving while impaired, are serious ones. They void the coverage.
Apart from this, the car must be rented in your own name. It should be in your name for not over 31 consecutive days. You will pay the complete rental amount with your card. It can include the USAA reward points.
Do not think that the amount can be split using another credit card. The rental car counter may offer your CDW/LDW. You must decline them.
POINT TO NOTE: USAA imparts coverage for loss of use fees apart from vandalism or vehicle theft. This fee is for when your car is not functional or out of service. It covers towing costs, but there is a cap.
The vehicles that the USAA credit card does not cover include trucks, vans, motorbikes, RVs, luxury vehicles, SUVs, and pickups.
Summing up
Hopefully, you are now familiar with USAA coverage for rental cars. Note that you still need to give the deductible on your insurance policy from your pocket. Only the rest of the part is covered by the insurance.
Faqs –
How many days does USAA cover rental cars?
USAA covers rental cars for up to 31 days all over the world. If you use a USAA credit card to pay for a rental car, you’ll get auto rental coverage for physical theft and damage.
Does my USAA auto insurance cover me in a rental car?
Yes, the USAA auto insurance policy protects you while renting a car.
What is the USAA code for a budget rental car?
Y126501 is the USAA code for a budget rental car. This code is used to get maximum benefits. At the time of rental, you’re asked to provide your USAA affiliation card to secure your rates.
Does USAA have permissive use?
Many big auto insurance companies allow for permissive use, including USAA. Before using it, you must always confirm your policy details.
