Short Term Auto Insurance
If you are searching for a temporary auto insurance policy there is a very good possibility that you do not need it…
Is temporary car insurance necessary if you are getting a rental car?
The rental company will likely offer you liability coverage, personal effects coverage, accident coverage, and/or a loss damage waiver. As long as you are using the rental car for recreational use (not business use) you own car insurance will cover the each of these offered insurances.
Below you’ll see a list of the aforementioned 4 insurance types and the reasons why they are probably not needed…
Liability coverage: The liability insurance that you already have pays for any damages, which you are found to be liable for.
Loss Damage Waiver or LDW: If you have both collision & comprehensive insurance, you don’t need a loss damage waiver. Your collision insurance covers damage done to your car even if you are found to be guilty in an accident. Comprehensive coverage covers damage done to your car from things such as wildlife and weather. Furthermore, some LDWs, which you can purchase, only cover damage done to the car if you are found to be innocent.
Personal accident insurance or accident coverage: If you already have either Personal Injury Protection, Medical Payments Coverage, or health insurance, you can skip on this additional insurance.
Personal effects coverage: This type of insurance protects from the loss of personal items or baggage. If you have homeowners or renters insurance, you likely do not need this coverage as both types of home insurance also cover belonging outside of your house.
If you want to be 100% sure that your homeowners, renters, and/or car insurances carry over, call them or read the policies for yourself. If you pay for the rental using a credit card, the card company may automatically give you some coverage, so its worth calling them as well.
What if you’re not renting, but borrowing somebody’s car?
If you have your own car insurance, you needn’t worry. Your own auto insurance transfers over. Additionally, the lenders car insurance policy will transfer to you. But what happens if you want to borrow a car and don’t have auto coverage for yourself?
If you want to borrow somebody’s car and do not have you car insurance, the main thing, which can hurt you, is lack of liability coverage. Yes, the lenders liability protection will cover you when you borrow their car. But if their liability coverage is not enough, you are liable for any amount, which is not covered by the lenders liability insurance. You can easily prevent this from happening by purchasing a cheap nonowners policy. As always, if you are innocent in an accident, the other person will pay for the cost to repair the lenders vehicle (although this isn’t the case in some states).
But whose going to pay for damages done to the car that was given to you? The owner of the car will pay if they have comprehensive and/or collision coverage. Or you may pay if you have these two coverages.
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