Your primary coverage will generally extend to a rental vehicle, but it is always better to call your car insurance provider and your credit card company to check the terms of your policy. If you cause an accident while driving a rental car, your liability insurance pays up to your policy limits for the damages to other cars or property, while collision coverage pays for any damages to the rental vehicle. If you have comprehensive coverage, non-accident related issues like vandalism and theft will also be paid for by the insurance company.