Thanks to the rising cost of gas, increases in insurance rates, and increasing car costs, many people are giving up their cars and using public transportation. But what if you want to rent or borrow a car to go on a long trip or a vacation? Here's how to get cheap non-owner auto liability insurance for just those occasions.
What is non-owner auto liability insurance?
It's auto insurance for people who don't own their own car, but occasionally rent or borrow one. Coverage includes:
* Bodily injury liability coverage which pays for any claims made against you, plus your legal fees, if you injure or kill someone.
* Property damage liability coverage which pays for claims made against you, plus your legal fees, when you damage another person's car or property.
If I borrow a car doesn't the owner's insurance cover me?
It depends on how much coverage they have. If you cause an accident in another person's car and you exceed the amount of liability coverage they carry, you'll be liable for the difference in damages. If they end up in the hospital and sue you, you could end up owing hundreds of thousands of dollars.
Doesn't the insurance on my credit card cover me?
It depends on the credit card. Some only provide coverage for certain types of cars, some limit the time of coverage, and some only provide collision and comprehensive coverage.
How about rental car agency coverage?
The coverage you get from rental agencies may or may not provide liability coverage, or only provide a limited amount of coverage. Also, if you rent cars for more than 10 days a year, purchasing non-owner auto liability insurance is usually cheaper.
