Non-Owned Auto Liability Insurance

It is common knowledge and by law that we need to purchase auto insurance in order for us to drive our own car. But, what happens when you are not the owner of the car, maybe you are driving a rental car, do you know if we need to buy a new auto insurance policy for the rental car as well?

The answer is yes or no. Yes, it is necessary to have auto insurance coverage whenever you drive a car, so, if you drive your own car, you need to have an auto insurance policy that covered it. But, when it comes to rent car, you might not need to buy an additional auto insurance. Why?

It is because depending on your purpose of renting car, whether it is used for business or pleasure, your own car insurance policy may be enough to cover for the rental car. If your comprehensive and collision insurance deductibles apply to a rental car, then you will be covered on your personal auto insurance policy. So, if it is sufficient to cover, then you won't need to buy an additional rental car insurance. Double confirm with your auto insurance company on this matter if you are not sure.

And of course, if you don't have a car insurance policy or if your car insurance is not enough to cover the rental car, then, you definitely need to purchase a non owner auto insurance policy to cover the car rental.

There are two different types of rental car insurance available when it comes to renting car: rental car counter insurance and non-owned auto liability insurance. The difference between the two are you need to purchase rental car insurance everytimes you rent a car whereas a non-owned auto liability insurance will be a yearly policy, meaning, you buy it for one whole year. So, if you buy a non-owned auto liability insurance, then you won't need to purchase rental car insurance everytimes you rent the car. If you are renting car frequently, buying a non-owned auto liability insurance would be cheaper compare to paying rental car insurance whenever you rent the car.

The coverage provides by a non-owned auto insurance policy covered you when there is damage to someone’ else car, passengers or to people walking in the street who have been injured as a result of the accident. The other benefits from this policy is under-insured and uninsured coverage and medical expenses occurring to you or the car passengers.

Please take note that non-owned auto liability insurance does not provide collision coverage and you will need to purchase it from the car rental company when you rent the car. Collision coverage is what you use to pay for damages occurring to your car in the event of an accident with another car, object or if the car rolls over in such an event.

However, if you are paying your rental cost using credit card, then you might want to take advantage of the free collision coverage provided by credit card company. Most credit card company provide this coverage free of charge if you charge the rental cost to the card. So, check out your credit card company to confirm that they do provide this coverage free of charge before you make the rental charge.