Discover does not offer rental car coverage as a standalone product, but you may have rental reimbursement through a Discover auto policy if you carry comprehensive or collision coverage
Discover Financial Services stopped selling auto insurance policies in 2020, so you cannot buy a Discover car insurance plan today. If you already held a Discover auto policy before that date, your coverage terms depend on when you purchased it and what you selected at the time.
If you are looking for rental car coverage now, you need to check your current auto insurance policy — whether that is through State Farm, Geico, Progressive, or another carrier — because rental reimbursement is an add-on that varies by insurer and by the coverage level you chose.
Key Takeaways
- Discover stopped selling auto insurance in 2020, so new customers cannot buy Discover car insurance today.
- Rental car coverage is not automatic on any auto policy; you must add it as a separate endorsement, and the cost and limits vary by insurer.
- If you held a Discover auto policy before 2020, contact Discover directly to learn what rental coverage was included in your specific plan.
- Your credit card may offer rental car coverage as a cardholder benefit, which is separate from your auto insurance policy.
What happened to Discover auto insurance
Discover exited the auto insurance market in 2020 and transferred existing policies to other carriers. Customers with active Discover auto policies at that time were moved to new insurers, and their coverage changed based on the transfer agreement.
If you believe you still have a Discover auto policy, the first step is to check your current insurance documents or log into your account. You may find that your policy is now underwritten by a different company, even though you may still pay Discover or a related entity.
How rental car coverage works on auto insurance policies
Rental reimbursement is an optional add-on to a comprehensive or collision coverage plan. When your car is damaged or stolen and is being repaired, this coverage pays for a rental car while yours is in the shop — typically up to a daily limit like $30 or $50 per day, with a total limit like $900 or $1,500.
You do not automatically have this coverage just because you have comprehensive or collision insurance. You must request it when you buy or renew your policy, and you will pay an extra premium for it. The daily limit, total limit, and cost differ between insurers and sometimes between different coverage tiers at the same company.
To use the coverage, you usually call your insurer after the damage occurs, and they either pay the rental company directly or reimburse you after you submit a receipt. Some policies require you to use a specific rental company or limit you to economy vehicles.
Checking your current auto insurance for rental coverage
Your policy documents list all your coverages and their limits. Look for a section called "Rental Reimbursement," "Rental Car Coverage," or "Transportation Expenses." If you cannot find it in your paperwork, log into your insurer's website or call your agent and ask directly whether rental reimbursement is included.
If you do not have rental coverage and want to add it, contact your insurer to request an endorsement. They will quote you the cost and explain the daily and total limits available. Adding it typically takes a few days and costs between $5 and $15 per month, depending on the limits you choose.
Rental car coverage through credit cards
Many credit cards, including some Discover cards, offer rental car coverage as a cardholder benefit. This is separate from your auto insurance and typically covers damage to the rental car if you charge the rental to that card. The coverage is usually secondary, meaning your auto insurance pays first if you have it.
Check your Discover card's benefits guide or call the number on the back of your card to learn what rental coverage is included. Coverage limits, exclusions, and the process for filing a claim vary by card type and issuer.
What to do if you had a Discover auto policy
If you held Discover auto insurance before 2020 and are unsure what happened to your policy, contact Discover directly at the phone number on your old documents or visit their website. They can tell you which carrier now holds your policy and provide details about your current coverage, including whether rental reimbursement was part of your plan.
If your policy was transferred to another insurer, that new company's customer service team can also answer questions about your coverage. Request a copy of your full policy documents if you do not have them; this will show every coverage you have and every limit.
Alternatives if you need rental car coverage
If your auto insurance does not include rental reimbursement and you do not want to add it, you have other options. Some credit cards cover rental damage if you charge the rental to that card. Car rental companies also sell damage waivers at the counter, though these are usually more expensive than adding coverage to your auto policy.
If you rent a car frequently, adding rental reimbursement to your auto policy is usually the cheapest long-term option. If you rent rarely, paying out of pocket or using a credit card benefit may make more sense.
Frequently Asked Questions
Can I still buy Discover auto insurance?
No. Discover stopped selling auto insurance policies in 2020 and does not offer new policies today. If you need auto insurance, you must purchase it from another carrier like State Farm, Geico, Progressive, or a regional insurer.
Does my Discover credit card cover rental cars?
Some Discover credit cards include rental car coverage as a cardholder benefit, but not all. Check your card's benefits guide or call the number on the back of your card to confirm what coverage you have and what you need to do to use it.
What if my rental car is damaged and I do not have rental coverage?
You will pay for the damage yourself or through the rental company's damage waiver. If the damage was caused by another driver, that driver's liability insurance may cover it. Otherwise, you can file a claim with your own comprehensive or collision coverage if you have it, though you will owe your deductible.
How much does rental car coverage cost?
The cost varies by insurer and by the daily and total limits you choose. Most insurers charge between $5 and $15 per month for rental reimbursement. Contact your current auto insurance company for a quote on adding it to your policy.
Is rental car coverage the same as a damage waiver from the rental company?
No. Rental reimbursement from your auto insurance pays for the cost of renting a car while yours is being repaired. A damage waiver from the rental company covers physical damage to the rental car itself. You may need both if you want full protection.