If you are looking for a short term car insurance policy theres a good chance that you may not even need it…
Is car insurance for a temporary period of time required when renting an automobile?
The rental car service will offer you either a loss damage waiver (LDW), personal effects coverage, liability insurance, or accident coverage. If you already have you own car insurance, you likely don’t need any of these additional insurances. Just make sure to use the rental car for recreational use and not business use.
Below is a list of the 4 insurance types that the rental car company may offer you and why you probably don’t need them…
Liability coverage: The liability insurance on your own policy will protect you.
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.
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: This type of coverage protects from the loss of personal items or baggage. If you have homeowners or renters insurance, you likely do not need this insurance as both types of home insurance also cover belonging outside of your house.
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’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 insurance 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).
If you borrow a car, who pays for damages done to the car itself? The collision and/or comprehensive coverage of the owner will pay if you are guilty, the other party will pay if they are guilty, and your coverage may pay if you have your own full coverage (comprehensive & collision).
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