Does Mercury Insurance Cover Rental Cars?

Renting a car can provide convenient transportation when traveling or give you mobility if your own vehicle is in the shop. But having the right insurance is crucial to protect yourself financially if an accident or damage occurs. So does Mercury Insurance offer rental car coverage?

Below is an overview of how rental cars can be covered through Mercury auto policies:

Mercury’s Rental Car Coverage Options

Mercury offers a few different ways to cover rental vehicles:

Rental Car Benefit – This is an optional add-on coverage you can purchase to provide reimbursement for rental costs if your insured vehicle is in the repair shop due to a covered loss.

Collision and Comprehensive – Your regular policy collision and comprehensive coverage will extend to rental cars in most cases. This covers damage to the rental.

Liability Coverage – Your auto policy’s liability coverage for injury and property damage you cause others will apply to rental cars.

Rideshare Coverage – If you rent a car to drive for Uber/Lyft, Mercury’s rideshare coverage will extend to rental vehicles used for this purpose.

Mexico Insurance – Mercury’s Mexico Tourist auto insurance policy can be purchased to cover rental vehicles driven into Mexico.

Rental Car Benefit Coverage Details

Mercury’s Rental Car Benefit option provides reimbursement for rental costs if you need a rental while your insured vehicle is being repaired for collision or comprehensive damage. Here are key details about this coverage add-on:

• Covers up to $30-$100 per day for rental fees, taxes, and mileage charges

• Applies for up to 30 days of rental costs

• Only covers rental vehicles in your selected per-day benefit amount

• You must carry collision or comprehensive coverage on your vehicle to qualify

• Deductible does not apply to the Rental Benefit coverage

Without this added coverage, you would need to pay rental costs entirely out of pocket if your car is in the shop after an accident. This protects against that expense.

When Regular Policies Extend to Rentals

In many cases, your existing Mercury auto policy will provide coverage for rental vehicles without needing to purchase extra insurance. Here’s how it works:

Collision Coverage – If you have collision insurance on your car, this will extend to a rental vehicle to cover its damage in an accident you cause. You simply pay your regular collision deductible.

Comprehensive Coverage – Likewise, if you carry comprehensive coverage on your own car, vandalism, theft, or other comprehensive losses to a rental vehicle will be covered. Your regular comp deductible applies.

Liability Coverage – Your policy’s liability limits for bodily injury and property damage apply to rental cars. So if you damage another vehicle, the rental company’s vehicle, or injure others in an accident with the rental, you have coverage through your policy’s liability.

Rideshare Coverage – If you rent a car to drive for a TNC like Uber or Lyft, Mercury’s rideshare coverage will extend to that rental vehicle just as if it were your owned car being used for rideshare driving.

Mexico Insurance – Rental vehicles driven into Mexico would be covered under Mercury’s Mexico Tourist auto policy. This provides protection required by Mexican law.

So in many situations, your existing Mercury policy will automatically provide coverage for a rental car without needing to buy extra insurance. But the Rental Car Benefit add-on provides extra peace of mind for your own rental expenses.

Should You Purchase the Rental Company’s Insurance?

When renting a car, you’ll often be presented with various insurance options like collision damage waiver, liability insurance, supplemental liability, etc. In many cases, these are unnecessary extras when your own policy provides coverage. But you should consider a few factors:

• If you don’t carry collision/comprehensive on your own car, rental company coverage may be wise for damage protection.

• Review your own policy limits. If your limits seem insufficient, added liability through the rental company may be prudent.

• Rental insurance can avoid claims on your policy and potential premium increases.

• Rental car coverage may have a lower or no deductible compared to your own policy.

• International rentals may require purchase of insurance through the rental company.

Discuss your situation with your Mercury agent to determine if you need additional insurance from the rental provider or if your Mercury policy offers sufficient coverage.

Coordination of Benefits With Your Own Insurance

When your Mercury policy provides coverage for a rental vehicle, your policy would pay out first should a claim occur. The rental company’s insurance would cover any expenses not paid out under your policy’s limits. This is called coordination of benefits.

So you first file a claim with Mercury and receive payouts per your coverage limits. If additional costs remain beyond that amount, the rental company’s insurance would then pay toward those leftover expenses. This provides an extra layer of coverage when needed.

Key Steps When Renting a Car

Follow these tips when renting a vehicle to ensure you have proper coverage:

• Discuss your rental plans with your Mercury agent beforehand to understand your existing coverage.

• Review rental terms thoroughly to see what insurance options are available and recommended.

• Inspect the vehicle carefully at pickup and note any prior damage on the rental agreement.

• Avoid purchasing unnecessary extras if your Mercury policy provides sufficient coverage.

• If unsure, contacting your agent from the rental counter can provide guidance on insurance needs.

• Save rental agreements, inspection docs, receipts, etc. in case a claim arises later.

Why Mercury for Rental Car Coverage?

Choosing Mercury Insurance provides you with excellent protection for rental vehicles:

Reputable company – Mercury is rated A+ by AM Best and has been in business since 1961. Customers can trust them to pay claims.

Flexible coverage – Mercury auto policies can easily extend to rental cars or add Rental Benefit for extra protection.

Policy discounts – Mercury offers multi-car, multi-policy, good driver, and auto/home bundling discounts.

Superior claims service – Mercury has knowledgeable claims reps to walk you through the process if a rental car claim occurs.

Accessible agents – Mercury’s local agents provide guidance to ensure you have the rental car coverage you need.

The Bottom Line

Does Mercury Insurance cover rental cars? Yes, through the Rental Car Benefit add-on or via extensions of your regular auto policy’s collision, comprehensive, and liability coverages. Discuss options with your agent to make sure you have the right protections. Mercury makes it easy to have peace of mind with rental vehicles.