Non Owner Auto Liability Insurance

We all know the importance of taking an auto insurance policy on our own car, but, what happens when it it comes to renting a car, do you need to purchase any insurance policy for protection? The answer is yes, you will need car insurance coverage to protect you against any unforeseen circumstances that may occur when you are driving the rental car.

Depending on your purpose for renting a car, whether it is used for business purposes or pleasure, your own car insurance policy may be sufficient to cover a rental car. If your comprehensive and collision insurance deductibles apply to a rental car, you will be covered on your personal auto insurance policy as well. If you are not sure, please make sure you check with your insurance company.

And if it happens that your car insurance is not sufficient to cover the rental car or if you don't have any auto insurance policy in force, then, you would need to purchase an auto insurance policy to cover the car rental.

There are two types of rental car insurance available: rental car counter insurance and non-owned auto liability insurance. The difference between the two types of insurance is that you will need to purchase rental car insurance whenever you rent a car, but, if you purchase a non-owned auto liability insurance, it 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.

Then, how does the the non-owned auto insurance policy covered you? A non-owned auto insurance policy will 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.

Although, non-owned auto liability insurance looks good in many ways, there is a downside to this coverage. It does not provide you 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, you will need to be sure that you got a collision coverage by buying it from the rental company. If you are making your 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.