On the surface, this question has a simple answer: Yes, the rental-car companies in Las Vegas (and everywhere else in the country) cover valet parking, as long as you buy insurance and damage waivers from them.
That, of course, is where it gets complicated (and a bit mind-numbing from all the insurance terminology and legalese). Still, it’s an important issue, especially in Las Vegas, where most people fly in and many rent cars, and keeping in mind that if you don’t buy rental-car insurance/waivers from them, the rental-car companies don’t cover diddly squat, which includes valet parking.
According to a study of 632 consumers conducted in September 2007 by the National Association of Insurance Commissioners, 42% were "either thoroughly confused or had only a rough idea about insurance [in general]" and 34% paid for rental-car insurance "to make sure they were covered."
If you're one of those 34%, you might be paying for coverage you already have. If you're one of the 66%, you might have less coverage than you think.
Rental-car companies offer four insurance/insurance-like products to their customers. The Loss Damage Waiver (LDW), technically, isn’t insurance (it’s not bought from or underwritten by an insurance company; instead, it’s sold directly through the rental-car company). Rather than "insure" a renter, LDWs "waive" renters' financial responsibility if their rental car is damaged or stolen. Waivers also cover "loss of use" (the time a damaged car is out of service), along with towing and administrative fees. (LDWs are generally voided if speeding, DUI, or driving on unpaved roads is involved.)
By law, car-rental companies must also offer the state-required amount of liability insurance. Generally, that’s not a lot, so you don’t get much protection.
Personal accident insurance covers you and your passengers for medical and ambulance bills for injuries caused in a car crash.
And personal effects coverage provides insurance protection for the theft of items in your car.
As for your personal policy, other than rare exceptions, all personal auto-insurance policies’ collision insurance protects against damage to a rental vehicle. Likewise, your personal comprehensive coverage likely applies to rental cars and covers fire, theft, vandalism, or animal collisions. If you cause an accident, your liability insurance will pay for any damages you cause to another car, plus medical expenses, up to the limits of your policy.
Note, however, that many auto-insurance policies stipulate that all this personal coverage is "excess" to any other coverage. This means that if you buy "primary" insurance from the rental-car company, the rental-company’s insurance kicks in first in the event of damage to or theft of the rental car. Thus, you avoid paying your personal policy’s deductible amount out of pocket; you also avoid seeing your insurance rates increase.
Also, only liability insurance is mandatory for policies covering many cars on the road today. If you’ve opted out of comprehensive and/or collision on your own car as a way to cut your insurance costs, you won’t be covered if your rental car is stolen or damaged in an accident. In addition, you need to check whether your insurance company pays for administrative fees, loss of use, or towing charges. (Some companies offer a rider to cover these costs, which makes it less expensive than purchasing coverage through the rental-car company.)
Meanwhile, the major credit card you use to pay the car-rental fee often provides some coverage. However, credit cards usually cover only damage to or loss of the rented vehicle. They don’t insure other cars, personal belongings, or the property of others. There may or may not be personal liability coverage for bodily injury or death. Some credit card companies cover towing, but many don’t insure for diminished value or administrative fees.
