Can I rent a car without having insurance?

Are you wondering “Do I need insurance to rent a car? Rental cars automatically are insured by the company for the minimum liability requirements of the state. So, when you rent a car, it is insured and you won’t get into legal trouble if you don’t have a policy of your own.

Supplemental insurance rates are negotiable and something that should be considered because the state minimum requirements don’t provide adequate protection should you cause a major accident. If you do not own your own vehicle, and you are tempted not to take on the costs of buying specialized insurance, read this guide to insuring rental cars for all of the pertinent information that you need to know.

Can you rent a car without insurance?

Do you need insurance to rent a car? You can rent a car without auto insurance. When you rent a car, the minimum liability coverage is automatically provided. You can get a higher level of coverage to make sure you won’t be paying for damages out of pocket.

Read more: Can I use my own car insurance when renting a car?

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Why are renters not legally bound to buy insurance?

Thinking of renting a car without insurance? Well, you are required by law in most states to insure all vehicles that you own so the rental company has to carry the minimum required coverage.

Since rental car companies will have the vehicle insured, you won’t get a ticket for driving without a rental auto insurance policy.

While you cannot be cited, you can still face a civil lawsuit for causing third-party damages or injuries when you do not have enough liability coverage to pay for property damage or bodily injury expenses.

Do you need car insurance to rent a car?

Almost every state requires a policy with liability coverage, but typically, the required amount is not enough to pay for damages you inflict on others in a major crash. You will be responsible for the balance of what the insurer pays and the cost of the damage. Also, keep in mind, liability coverage (the kind of protection that is automatically on the rental vehicle) does not cover damage to the rental vehicle itself. If you total the car, you will be liable for the replacement cost out of pocket.

If you are negligent for the injuries, third-party damages, or the damage to the rental, you may be ordered to pay by liquidating your assets or by having your wages garnished. To truly protect yourself financially, consider the following three ways in which you can be sure you have adequate rental coverage.

Will your personal auto insurance policy transfer to the rental?

Do you have to have insurance to rent a car? Some might not even be aware that their private passenger auto policy will extend to cover them while they are driving a rental in the United States.

You need to be sure to check with your personal auto insurance provider to learn exactly how your coverage extends, but it’s nice to know that the liability coverage from your personal insurance policy will follow you as the driver.

Let’s see how your personal coverage can protect you.

What is liability insurance?

When you own a car and live in a state where personal car insurance is a requirement, you will have at least a minimum amount of liability coverage.

Liability coverage will pay third-party expenses for:

• Medical treatments
• Emergency transport
• Loss of wages
• Repairs or replacements when you are negligent for a collision

When you review your policy, you will see that the liability coverage will follow you to provide protection if you are borrowing a car or renting a replacement. You should always check with your agent to see if you need to notify the insurer before you rent.

There are also other considerations to make. Be sure to check your limits and consider raising them. It’s better to have extra insurance you don’t need than to not have enough coverage when something happens.

When you are driving on unfamiliar terrain, the risk of having a loss is higher.

On many occasions, however, insurers will raise your limits automatically to match state requirements if yours are too low.

What is physical damage coverage?

Physical damage coverage will help to pay for repairs and car replacement of the covered vehicle when you experience a covered loss. It is made up of comprehensive and collision coverage. Collision losses involve crashing into an object. Comprehensive coverage will pay for losses that do not involve a collision.

Some examples include:

• Fire
• Theft
• Vandalism
• Explosion
• Glass breakage

Not all auto policies have physical damage coverage in case of an accident. You should review your personal policy closely to see if you have both comprehensive and collision coverage to cover an accident. If you do, you will be happy to hear that your coverage for physical damage will transfer to the rental car. It is defined under the policy as a replacement vehicle.

Whatever deductible that you carry on your policy will apply when filing a claim for your rental.

If you do not have auto coverage or you do not have full coverage on any vehicle, damage to your rental will not be covered unless you buy a supplemental plan.

Some policies also offer rental reimbursement coverage, which pays for a rental car if you’re own car is damaged and out of commission in a repair shop. However, this coverage usually does not apply to vehicles you’ve rented for vacation, a business trip, or other reasons that don’t involve your own car being damaged. Rental car reimbursement is an optional coverage, so it would not be on your policy unless you asked for it.

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Will your credit card offer protection?

Many credit cards include insurance coverage for rental vehicles. These companies include Visa, American Express, Mastercard, and Discover. The level and type of coverage will vary as well as coverage limits, but it’s worth looking into. Once you figure out which of your cards will provide the best complimentary coverage, you must make sure you do the following:

• purchase the rental with that card
• refuse supplemental insurance from the rental company

Keep in mind that certain vehicles aren’t covered by credit card companies’ policies. Find out if your vehicle type is excluded from your credit card insurance before making your decision.

Should you get non-owner car insurance or travel insurance?

Non-owner car insurance is a type of insurance that covers you when you’re driving a car that isn’t yours. So, non-owner insurance would cover you while driving a rental car, but it is a whole separate insurance policy, so it probably wouldn’t make sense to buy it unless you rent cars frequently and/or drive cars that belong to other people (and you also do not own your own car).

If you’re going on a trip and you’ve bought or are planning to buy travel insurance, that policy may offer coverage for rental cars. Check the details of the policy or ask an insurance agent if you will be covered.

Read More:

• Alamo Rental Car Insurance Review
• Enterprise Rental Car Insurance Review

Will the rental agency offer supplemental coverage options?

All consumers who have rented a vehicle know when they’re at the rental car counter that the agents are going to push rental car insurance. While the secondary coverage can sound enticing, most believe it just comes down to collecting more money.

Now that you know how your personal car insurance policy works, you can decide if you need to purchase their rental car insurance coverage. There are several types of rental car coverage peddled at the counter. Knowing how one differs from the other is crucial to cross the duplicates off the list and select the ones that will give you peace of mind.

Here is a breakdown of each:

Rental Car Insurance Options

If you currently want to price the cost of personal insurance, use an online rate comparison tool, and see how much cover will cost for your cars.

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Case Studies: Renting a Car Without Insurance

Case Study 1: Coverage From Personal Auto Insurance

Emily owns a personal auto insurance policy that provides liability coverage. She is planning to rent a car for a vacation trip. Before renting the car, Emily contacts her insurance provider to confirm if her personal auto insurance coverage extends to rental cars.

Her insurance company informs her that her liability coverage will follow her while driving a rental car. Emily feels reassured knowing that she is already covered and can decline the rental company’s insurance options.

Case Study 2: Credit Card Coverage

John is planning a business trip and needs to rent a car. He has a credit card that offers insurance coverage for rental vehicles. Before making the reservation, John checks the details of his credit card coverage to understand the extent of the protection provided.

He ensures that his credit card will offer comprehensive and collision coverage for the rental car. With this knowledge, John decides not to purchase additional insurance from the rental company, knowing that he has coverage through his credit card.

Case Study 3: Supplemental Rental Coverage

Sarah does not own a car and does not have personal auto insurance. She wants to rent a car for a weekend getaway. Since she does not have her own insurance coverage, Sarah decides to purchase supplemental rental coverage from the rental company.

She understands that this coverage will provide the necessary liability protection and cover damages to the rental car. By purchasing the supplemental insurance, Sarah ensures that she has adequate coverage during her rental period.

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