Non-Owned Auto Liability Insurance

Everyone know the importance of purchasing an auto insurance policy for our own car, but, when it comes to renting a car, do you know whether there is a need to purchase any insurance policy for protection? Well, the answer is yes. It is necessary to have insurance coverage whenever you drive a car, regardless it is your own vehicle or a rental car.

In the case of renting car, depending on whether it is used for business or pleasure purpose, your own car insurance policy may or may not 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. If you are not sure, it would be good to check and confirm it with your insurance company.

In the scenario where your car insurance is not sufficient to cover the rental car or if you don't have any valid auto insurance policy, then, there is no option left: you would need to purchase an auto insurance policy to cover the car rental.

When you look at purchasing rental car insurance, there are two types available: rental car counter insurance and non-owned auto liability insurance. The difference between the two types of insurance is that rental car insurance needs to be purchase everytimes you rent a car whereas a non-owned auto liability insurance will be a yearly policy, meaning, you buy for one whole year. So, if you rent car frequently, it will be much cheaper if you purchase a non-owned auto liability insurance compared to buying rental car insurance whenever you rent a car.

A non-owned auto insurance policy provide coverage 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.

Take note that there is one downside of a non-owned auto liability insurance: it does not provide collision coverage. 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.

So, when you rent a car, you will need to make sure that you purchase a collision coverage from the rental company. However, if you are paying the car rental cost by credit card, you might want to check with your credit card company to see if they provides this coverage free of charge. Most of the credit card company do provide the collision coverage when you pay for the rented car using their card.