When accepting this tip, customers should consider that auto insurance coverage varies widely, and they should check their policies to confirm coverage. If a driver has only the state minimum, a rental car may not be covered. However, most full-coverage policies also cover rental vehicles. Generally, the coverage on a vehicle extends to a rental vehicle because the rental is regarded as a replacement car under the terms of the policy. If there’s an accident involving the rental vehicle, the driver’s insurance rates will rise if they have to make a claim.