AAA Rental Car Insurance: What's Covered

Two things make AAA's rental coverage situation different from most insurers: coverage terms vary by AAA club region since AAA auto insurance is underwritten by CSAA Insurance Group and other regional underwriters, and AAA membership provides separate rental discounts at major chains regardless of which auto insurer the member carries. We've reviewed AAA's policy terms and pricing in our guide.

AAA auto policies extend collision, comprehensive, and liability to rental cars at the same limits as your own vehicle, but collision and comprehensive must be active on the policy. Liability-only policyholders have no physical damage protection for the rental. The deductible applies exactly as it would on your own vehicle, and filing a rental claim goes on the policy record. To activate the extension, decline counter CDW, be the renter of record and use a personal policy. Car insurance covers rental cars, and personal policies apply at the counter.

AAA membership provides rental car discounts at major rental chains, including Hertz, Enterprise, Avis and Budget, as a standalone membership benefit entirely separate from AAA auto insurance coverage. These discounts apply to the base rental rate and are available to any AAA member regardless of what auto insurance they carry. Current discount amounts vary by partner and AAA club region.

AAA members who also hold AAA auto insurance can use both benefits: the membership discount reduces the rental base rate, while the existing auto policy's collision and comprehensive coverage eliminates the need to purchase counter CDW. Members who hold AAA membership but carry a different insurer can still use the rental discounts, but should purchase CDW at the counter or verify their own insurer's rental coverage before declining it.

Full coverage through AAA still leaves five rental car exposures unaddressed. Know what your personal auto policy won't cover before you get to the rental counter, because those gaps cost money when a claim comes in.

• Liability-only policyholders have no physical damage protection. If the policy doesn't include collision and comprehensive, the full cost of repairing or replacing the rental vehicle falls on the renter.
• Loss-of-use fees aren't usually covered. Rental companies charge a daily fee for each day a damaged vehicle is out of service for repairs. AAA auto policies don't cover this charge, but coverage terms vary by AAA club region. Verify with your local AAA club whether any available endorsement addresses loss-of-use fees, as this has not been independently confirmed across all regional underwriters.
• Business use voids the personal policy extension. AAA personal auto policies do not extend to rentals used for business purposes. A separate commercial auto policy is required for business rental use.
• Coverage terms vary by AAA club region. AAA auto insurance is underwritten by CSAA Insurance Group and other regional underwriters. Available endorsements, rental reimbursement limits, and specific exclusions differ by region. Contact your local AAA club for the terms that apply to your policy.
• Rental discounts don't substitute for coverage. AAA membership rental discounts reduce the base rental rate only. They don't provide CDW protection or liability coverage for the rental vehicle.

Should you get rental car insurance? AAA members with only liability coverage should purchase counter CDW for any rental. The personal policy provides no physical damage protection for the rental vehicle. Members who carry a non-AAA insurer but hold AAA membership should confirm their other insurer's policy covers the rental before declining counter CDW.  

AAA policyholders with full coverage and a deductible under $500 can decline counter CDW for domestic rentals without taking on substantial risk. The combination of AAA membership rental discounts on the base rate and full coverage extension on the vehicle reduces total rental cost: the discount lowers the daily rate while the existing policy eliminates CDW costs.