If you are searching for a temporary auto insurance policy there is a very good possibility that you do not need it…
Is temporary auto insurance necessary if you are getting a rental car?
The rental service will offer you some combination of liability insurance, personal effects insurance, accident coverage, and/or a loss damage waiver (more commonly known as LDW). If you have your own auto and have the respective auto insurance, you are most likely covered for each of these 4 insurances. As such, getting even one of them is likely a waste of money. You just have to make sure that you are using the car for recreational and not business use.
Below you’ll see a list of the aforementioned 4 insurance options and the reasons why they are probably not needed…
Liability coverage: The liability insurance on your own policy will protect you.
Loss Damage Waiver (LDW): Collision & comprehensive insurance (if you have them on your car), makes this coverage superfluous. Your collision insurance pays for damages to your car regardless of who is at fault in an accident. Comprehensive insurance protects you from damage or loss caused by everything from the weather to burglary.
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.
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 already have your own auto insurance, you don’t have to worry. Also, the car insurance of the lender will transfer over to you. What if you want to borrow someones car and don’t have your own coverage?
If you don’t have you own auto insurance coverage and want to borrow someone else’s car, liability coverage may come back to haunt you. Although the lenders liability will transfer over to you, if it is not enough to pay for damages, which you are responsible, you have to pay the difference. If you don’t have a car you can make sure this doesn’t happen by getting a nonowners policy. Of course, if you’re not guilty in an accident, the other persons liability coverage will pay for the damages (although this may not be 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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