It is inevitable. At some point in your life, you will need to rent a car. Whether you are going on vacation and need to get around, or your car is in the shop for repairs, you need reliable transportation. Of course, as law-abiding citizens, you want to know where the registration is located should you get pulled over or stopped at a routine road check. Knowing where the insurance information is for the vehicle can mean the difference between the officer letting you go and a hefty ticket.

The fact is, a rental vehicle is subject to slightly different laws than your personal vehicle. Depending on your state, you can show proof of rental to appease an officer asking for the registration and insurance information. The real question is: what does the insurance cover for a rental vehicle and can you purchase additional, non-owner insurance for added coverage?

The Rental Company’s Insurance Coverage

When you rent a vehicle, your vehicle insurance can be utilized to cover you for your rental vehicle as well. However, you will be subject to your deductibles and the penalties associated with claims filed against your personal auto insurance if you were to get into an accident or have any other issues with your vehicle. Therefore, you can often purchase insurance from the rental agency that leaves your auto insurance out of the mix if an incident should occur.

The problem arises when you do not have automobile insurance and rent a vehicle. This lack of insurance can happen if you live in an area where you find owning a car is an expense you would rather not endure. It also occurs when you see that you are home more than you are traveling, and you wish to forgo the expense of a car that you rarely use. In either of these instances, you will be required to purchase non-owner’s insurance from the rental company or your policy from an independent company to cover you in the event of an incident.

For people who may only rent a vehicle occasionally, perhaps only once or twice a year, purchasing a policy from the rental company may be a good option. While it may be costly, you are not renting vehicles often enough to need to carry coverage continuously throughout the year, thereby saving you money in the long run. However, for those of you who rent vehicles regularly, you may want to consider purchasing your non-owner insurance policy.

 

Non-Owner’s Insurance

If you are renting a car on a regular basis, the cost of the rental company’s insurance can be detrimental to your wallet. An alternative is to carry non-owner’s insurance. Non-owner’s insurance is a policy you can buy from an independent insurance agency to help you if you are in an accident in a vehicle that you do not own, such as a rental vehicle.

The coverage provided by a non-owner’s policy includes bodily injury and property damage liability limits. You can also choose to include uninsured motorist and medical payment coverage for an additional premium. The cost, since it is an ongoing coverage that is sold through an independent insurance company, is less expensive than the policy offered by the rental company. Moreover, it gives you more coverage and provides you with a bit more comfort when you are behind the wheel. 

 

Final Thoughts

As a reminder, non-owner’s insurance coverage is necessary if you do not have a personal automobile insurance policy to cover a car you regularly drive. If you are a driver of a vehicle you own or lease, you could already have automobile insurance that will take effect when you are driving a rental vehicle. Always check with your insurance agent to see if this coverage exists on your current policy before you decline the coverage from the rental facility or purchase a standalone non-owner’s policy.

In the end, a rental company will offer a variance of a non-owner’s insurance policies to cover your liability concerns if you are in an accident in your rental car. However, this type of coverage can be quite costly, especially if you are a frequent renter. For anyone who is a frequent renter, it may be advantageous to carry your own non-owner’s insurance policy to save money and provide some protection under any driving circumstance.

To learn more about a non-owner’s insurance policy, contact our team at protectiveagency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.