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Rental Cars: Your personal automobile policy may provide liability coverage for your personal use of a rental car when you are travelling away from home within the 48 contiguous United States.    If you have physical damage coverage on your auto policy, that coverage also extends to the rental car, subject to your deductible. Still, you should consider buying the physical damage coverage the rental car company offers, because they could hold you responsible for some costs that your auto policy does not cover, such as loss or rental income while the car you damaged is being fixed.

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