Property damage to a rental car is paid under which type of automobile coverage?

The correct response indicates that property damage to a rental car is typically covered under the insured's property damage coverage. When an individual rents a vehicle, their personal auto insurance policy often extends to cover damages they cause to the rental car, as long as the policyholder has property damage liability coverage. This coverage provides financial protection for any damages resulting from an accident that the insured is responsible for while operating the rental vehicle.

In this scenario, it’s important to note that many personal auto insurance policies include liability coverage that is not limited to the insured's own vehicle, but also applies to rental vehicles, as long as the rental is used for personal purposes and within the constraints of the rental agreement.

The other options reflect different aspects of auto insurance but do not accurately represent how rental car damages are typically handled. For example, while the rental company's coverage may provide protection, the primary responsibility usually falls on the insured's policy if they have the necessary coverage. Similarly, physical damage coverage generally pertains to insurance for damages to the insured's own vehicles rather than liability for damage to a rental vehicle. Endorsements enhance coverage but are not the standard method for addressing this type of damage without an existing auto liability policy in place.