If you are looking for a short term car insurance policy theres a good chance that you may not even need it…

Is temporary auto insurance necessary if you are getting a rental car?

The rental company will likely offer you liability coverage, personal effects coverage, accident coverage, and/or a loss damage waiver. As long as you are using the rental car for recreational use (not business use) you own car insurance will cover the each of these offered insurances.

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: 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.

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 coverage 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 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’re 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 insurance?

Lack of liability coverage is the main thing, which can hurt you, if you are borrowing somebody’s car. If the lenders liability coverage is not enough (say it is $4,000 short of paying for the damages), you are responsible for the difference in an accident in which you are found to be guilty. You don’t have to worry about this happening if you get a nonowners policy, which provides liability coverage for those who borrow others cars. And, as always, if you are the innocent party in an accident, the guilty one will pay for the repairs (this isn’t the case in every state as some are no-fault states).

If you borrow somebody’s auto, who is going to pay for damage done to the lenders car? If the owner of the car has collision and/or comprehensive insurance, they will pay. You may pay if you have these two insurances.

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