If you are on the look for an auto insurance policy for a short period of time, there is a big likelihood that you don't even need to buy it...
Is temporary auto 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 is a list of the 4 insurance types that the rental car service may offer you and why you probably don't need them...
Liability insurance: The liability coverage on the auto insurance policy that you already have protects you.
Loss Damage Waiver: The collision & comprehensive coverage, which you probably have on you car, make the LDW unnecessary. Collision coverage pays for damages to the car regardless of who is at fault and comprehensive coverage pays for damage caused by things such as a thunderstorm or a collision with a deer.
Accident coverage or personal accident insurance: If you have one of these (Medical Payment Coverage, Personal Injury Protection, or health insurance), you do not need this extra coverage.
Personal effects coverage: Rental car companies offer this type of coverage for stolen items. However, it is very likely that your homeowners or renters insurance already covers items that are stolen not just inside the house, but outside of it as well.
To be on the safe side, it is best to call both you car and house insurer to make sure that both policies carry over. Or, you can just read your policy. Its likely that you'll get some type of insurance from your credit card company as well.
What if you are borrowing a car?
If you have your own car and thus have the respective car insurance, you needn't worry. Furthermore, the lenders policy (as long as they give you permission to drive the car) transfers over to you. But what if you're borrowing somebody's car and don't have your own car insurance?
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.
Is temporary auto 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 is a list of the 4 insurance types that the rental car service may offer you and why you probably don't need them...
Liability insurance: The liability coverage on the auto insurance policy that you already have protects you.
Loss Damage Waiver: The collision & comprehensive coverage, which you probably have on you car, make the LDW unnecessary. Collision coverage pays for damages to the car regardless of who is at fault and comprehensive coverage pays for damage caused by things such as a thunderstorm or a collision with a deer.
Accident coverage or personal accident insurance: If you have one of these (Medical Payment Coverage, Personal Injury Protection, or health insurance), you do not need this extra coverage.
Personal effects coverage: Rental car companies offer this type of coverage for stolen items. However, it is very likely that your homeowners or renters insurance already covers items that are stolen not just inside the house, but outside of it as well.
To be on the safe side, it is best to call both you car and house insurer to make sure that both policies carry over. Or, you can just read your policy. Its likely that you'll get some type of insurance from your credit card company as well.
What if you are borrowing a car?
If you have your own car and thus have the respective car insurance, you needn't worry. Furthermore, the lenders policy (as long as they give you permission to drive the car) transfers over to you. But what if you're borrowing somebody's car and don't have your own car insurance?
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.
