Renting a car when you don't own a car and therefore have no personal car insurance.

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Jags4186
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Renting a car when you don't own a car and therefore have no personal car insurance.

Post by Jags4186 » Sun Mar 27, 2016 11:41 am

I have been thinking about this for a while now. Say you do not own a car and therefore don't have car insurance. You routinely however rent a car. Now most of us know we get rental car insurance through our credit card (secondary on most, primary on some premium credit cards). If you don't have personal insurance, your credit card secondary insurance becomes primary.

Question is, all of the rental insurances I've seen offered are for damage to the vehicle. What about liability coverage? I can imagine an awful circumstance where you get into an accident and kill somebody--great the vehicle damage is covered but now you're on the hook for $1,000,000 wrongful death suit. In this circumstance, is this why you would carry umbrella coverage?

dailybagel
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by dailybagel » Sun Mar 27, 2016 12:19 pm

I recently faced this issue. I purchased liability-only insurance at the rental car counter. It complimented the collision coverage provided by my credit card.

It cost $11 per day, which is probably double or triple what an annual liability policy would cost (on a per-day basis). BUT, the insurance was purchase-able in daily units, and is "guaranteed issue", i.e. is available without a driving record check. I believe that "full coverage" (liability plus collision) was $27 or $32 per day.

mervinj7
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by mervinj7 » Sun Mar 27, 2016 12:23 pm

Many insurance companies offer non-owner liability insurance. If you rent often enough, it may be a reasonable option for you.

Ex: https://www.geico.com/information/about ... r-rentals/

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celia
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by celia » Mon Mar 28, 2016 12:35 am

Have you ever considered renting a zipcar? They are often used for a few hours or days and are sometimes found on college campuses. Insurance is include in the rental (liability and property). See the FAQs at the bottom of http://www.zipcar.com
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PowDay
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by PowDay » Mon Mar 28, 2016 7:42 am

mervinj7 wrote:Many insurance companies offer non-owner liability insurance. If you rent often enough, it may be a reasonable option for you.

Ex: https://www.geico.com/information/about ... r-rentals/

If you rent a few times a year, I would suggest this as well. When I was car less I was paying roughly $30 a month for it.

The other benefit is that with a non-owners policy you are protected in any incident with a vehicle, even as a pedestrian or cyclist.

Think about what would happen if you got hit by an uninsured motorist while crossing the street.

truenorth418
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by truenorth418 » Mon Mar 28, 2016 7:48 am

I just sold my car. I subsequently purchased "named non owner" coverage (from Geico). This covers liability if ever I drive someone else's car and whenever I rent a car, which I plan to do from time to time. They also presented it as a prerequisite for my umbrella policy. It costs about 30% of my previous policy when I owned my car.

furwut
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by furwut » Mon Mar 28, 2016 10:25 am

I agree with the others and recommend looking at a non-owner's insurance policy.

Many car sharing memberships only come with the state mandated minimum insurance. Sometimes its hard to even find out. Once I had to send an email and wait days for a response to determine what insurance was included. Likewise insurance purchased at a rental counter may have weird exclusions written into the contract - who is going to read every paragraph while standing there?. Credit card insurance can change its terms at any time without notice.

So to ensure your are adequately covered I'd purchase the non-owners policy ahead of time.

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sddiehard
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by sddiehard » Mon Mar 28, 2016 1:05 pm

My son uses a program through his American Express card that automatically will add auto insurance when renting a car. He has been using a Costco AmEx and when it ends, will get a new AmEx card solely for this benefit. Don't have more details, but may want to check further.

Paul

remomnyc
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Re: Renting a car when you don't own a car and therefore have no personal car insurance.

Post by remomnyc » Tue Mar 29, 2016 11:24 am

We have umbrella liability through Metlife, which requires us to purchase liability coverage when we rent cars. Liability for car rental runs $10 to $20/day, depending on where we are. We get CDL coverage from our credit car. Looked into named non-owner policies, but since we only rent 5-10 days/year, it didn't make sense.

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