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 coverage, personal effects coverage, accident coverage, and/or a loss damage waiver (more commonly known as LDW). If you have your own car and have the respective car 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 are the 4 aforementioned insurance options, which the rental service may offer you, and why they are likely not needed…

Liability insurance: The liability coverage on the car insurance policy that you already have protects you.

Loss Damage Waiver: The collision & comprehensive coverage, which you probably have on you auto, make the LDW unnecessary. Collision coverage pays for damages to the car regardless of who is at fault and comprehensive coverage pays for damage caused by things such as a thunderstorm or a collision with a deer.

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 100% safe, you should try calling your house and car insurance provider so that you are sure that they both will carryover their coverage to the rental car. You may get some form of coverage from your credit card if you use it to pay for the rental.

What if you are borrowing a 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 insurance?

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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