Short Term Car Insurance

If you are looking for short term car insurance policies, there’s a very good chance that you may not even need it…

Do you need short term car insurance quotes if you are renting out a car?

The rental company will likely offer you either liability coverage, accident coverage, personal effects coverage, and/or a loss damage waiver. For each of these offered coverages, if you have the respective car of auto insurance coverage, you do not need the insurance that the rental company offers to you, as long as you are using the rental car for routine or recreational use, not for business use. Below is a list of the offered insurance that car rental companies will offer you and the respective insurance that you already have, making the car rental insurance options unnecessary…

Liability coverage-Your own liability insurance with your car insurance company can pay for this.

Loss Damage Waiver (LDW)-If you have collision and comprehensive insurance, you do not need this coverage. Collision insurance covers damage to every car your drive, regardless of whether you are found to be at fault (guilty) in an accident. Comprehensive coverage covers any non-collision damage to any car you drive. In other words, it pays for damage or less from things such as the weather, wildlife, or theft. Depending on the rental company, the LDW may only cover damages in which you are not found to be at fault.

Accident coverage/personal accident insurance-If you have either Personal Injury Protection (PIP), Medical Payments Coverage, or health insurance this coverage may not be necessary.

Personal effects coverage-Your homeowners insurance or your renters insurance covers your personal belongings not just in your house, but in your car as well, as long is it is locked and closed. I have a detailed overview of home insurance in Baton Rouge Home Insurance.

To be 100% sure that coverage you get from your auto insurer and home insurer carry over to a rental car, call each company. Also, it’s a good idea to call your credit card company as they might insure you for damage done to the rental vehicle, as long as you pay for the rental car from their card. You might very well not have to pay for any short term rental car insurance.

Other things to consider if you’re renting a car…

What if you don’t own a car? Perhaps you live in New York City or simply don’t have one for whatever reason. If you don’t own any type of car insurance, there is no carry-over coverage for each of the four policies. However, if you frequently rent cars or borrow cars, you can purchase a nonowners auto insurance policy from car insurance companies, which would cover you for liability damage, which would include bodily injury liability and property damage liability. Keep in mind that liability coverage does not pay for your expenses, but for others if you are found to be at-fault in an accident. Bodily injury liability would cover medical expenses, wage lost, and/or pain and suffering. Property damage liability pays for damage done to other cars as well as fixed property such as fences or buildings. If you are renting a car and have a nonowners policy, the liability coverage which the rental place would offer you is superfluous. However, nonowners liability coverage does not cover damage to the rental car. Unless your credit card has some type of insurance coverage for rental car damage, you’ll likely need to purchase the LDW that the car rental place offers.

What if you borrow a car, do you need a car insurance short term policy?

If you are borrowing a car, a nonowners policy covers you for any bodily injury or property damage which you are liable for. Although the person who owns the borrowed car has liability coverage (it is illegal not to have it), which transfers over to any other driver of their car with their consent, it may be not enough to cover damages which you may cause. For example, say you borrow your friend’s car and they only have $15,000 in property damage liability. You stop too late at a stop sign and hit someone else’s expensive Range Rover. The total damages to the Range Rover are $25,000. Because your friend’s policy only goes up to $15,000, you are responsible for the extra $10,000. If you have a nonowners policy which covers property damage for up to $50,000 (the recommended amount), there is no need to worry about such things. Of course, the owner of the borrowed car may have enough liability coverage to pay for all the damage that you cause. Regardless, if you plan on borrowing cars from different people, a nonowners policy is recommended.

If you have nonowners car insurance and you cause damages to others (bodily injury or property), you needn’t worry about damages for which you are liable. But what about damage done to the car itself? If the owner gave you permission to use their car, their collision and/or comprehensive insurance would cover it. If they don’t have collision and/or comprehensive insurance and you damage their car, they’re out of luck. However, if you have your own car insurance, it might pay for the borrowed car’s damages. Who pays for your bodily injuries in the unfortunate event of an accident? If the owner of the borrowed vehicle has Personal Injury Protection (PIP), you have your own PIP, or you have your own health insurance.

If you think you need short term car insurance for yourself when you are renting, please do your homework. Rental companies want your money and the insurance options that they offer you can add up quickly.

If you are frequently borrow cars, consider getting nonowners car insurance.

Whatever you do, do not think that a solution to getting a short term car insurance policy is none at all. Although car insurance is expensive, the risks of driving without coverage far outweigh your auto insurance premium.

Other helpful car insurance hubs:

Auto Insurance Discounters: You Are Your Own Discounters!

Inexpensive Car Insurance: Some Tips

Location specific car insurance hubs:

Mesa Auto Insurance
Baton Rouge Car Insurance
Bakersfield Auto Insurance
Baton Rouge Car Insurance
Grand Rapids Car Insurance: Grand Rapids Car Insurance Quotes Requirements
Fort Worth Car Insurance
Clearwater Car Insurance: Car Insurance in Clearwater FL Regulations

And, of course, I have this Short Term Car Insurance Guide!