Specifically, most travel insurance policies read like the following with regards to car rental coverage:
The insurer will pay the lesser of:
(a) the cost of repairs and rental charges imposed by
the rental company while the car is being
(b) the Actual Cash Value of the car
Up to the maximum limit shown on the insurance policy’s schedule subject to the policy’s deductible.
The exclusions in a travel insurance policy typically list personal possessions as not being covered with the (often optional) rental car coverage.
If your rental car is broken into in a ‘smash and dash’, you’ll be responsible for the loss of anything stored inside it. This is true as well for anything destroyed in a collision. Read the full details on car rental collision coverage and who offers this with their travel insurance plans.