by rgabriel_ricci » Sat Apr 16, 2011 05:06 am
Question: I am considering buying non owner insurance for use with a rental car, while I am searching for a new car.
With rental cars who is responsible to pay for rental car damage in case of an accident. Non owner polices do not pay is my understanding. If I am still liable for collision damage, this policy has no value in rental situation. What would you recommend as a policy type for my situation.
G
With rental cars who is responsible to pay for rental car damage in case of an accident. Non owner polices do not pay is my understanding. If I am still liable for collision damage, this policy has no value in rental situation. What would you recommend as a policy type for my situation.
G
Posted: Sun Apr 17, 2011 01:01 am Post Subject:
With rental cars who is responsible to pay for rental car damage in case of an accident.
Well, technically, the person who signs the rental contract is responsible for any damage to the vehicle (even if caused by a third party). If the damage is caused by someone else, their insurance will cover the actual damages. But that might not be all that the responsible party owes.
Non owner polices do not pay is my understanding.
You are somewhat misinformed. "Named, non-owner" auto insurance is precisely for the situation you describe. If you purchase the policy with collision coverage in addition to the required liability coverage, then the vehicle will be covered for any damage to it that you cause. Car rental agencies often insert language that forces you to cover their "loss of use" while the vehicle is being repaired for damages that occurred while you rented the vehicle.
Collision coverage (yours or a third party's) will not normally pay for that -- it's similar in nature to the need for "lease GAP" protection. The insurance company may have additional coverage you can purchase for this situation. Then again, if your rental period does not exceed 30 days, your credit card company may cover that when you use the card to pay for the entire rental. Have to read your cardmember benefits brochure to know for sure.[/quote]
Posted: Sun Apr 17, 2011 04:35 am Post Subject: Topic: Non owner insurance.
Thanks for the concise answer. You are correct in you statement, that I am misinformed on this type of insurance.
However, their is good reason for that. Every website I have read on the topic has specifically defined this type of policy as a liability only policy. Am I safe in assuming all the websites are wrong and you are correct? None of them included the collision option, even when specifically discussing rental cars. I would rank that as a major risk factor for the rental car non owner category.
Can you provide a starter list of companies that provide a collision option for their Non owner policy?
Are their other options open to me, besides non owner, for my specific case. For example, will an auto insurance company sell me auto insurance which covers my rental car while I am searching for a new car. Once the new car is purchased I would then add the purchased car to the existing policy.
G
Posted: Sun Apr 17, 2011 02:55 pm Post Subject:
If you do not currently own a car with insurance coverage, the named non-owner policy is available from almost any insurance company. The standard policy is a liability-only policy (as required by state laws), but you should have no trouble purchasing the coverage to include collision protection.
Since you are only using the insurance temporarily for rental car coverage, it might be that you will have to obtain the coverage (at a higher cost) through the "Surplus Lines" market.
The best advice I can give you is to work with a local agent/broker who will get the right coverage for you. Choose a LARGE agency that has been in business for several years and not someone who only does auto and homeowner's (personal lines) insurance.
You probably cannot do this yourself over the Internet, so it would not be valuable to give you a list of insurance company names.
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