Why You Might Still Need Car Insurance
Even If You Borrow or Rent Cars
If you don’t own a car, you might assume you don’t need car insurance. But what if you occasionally borrow a friend’s vehicle or rent a car for a weekend trip? Many drivers in McKinney, TX and beyond are surprised to learn that car insurance for rental or borrowed cars is just as important as owning a policy for your own vehicle At Pierce Insurance Group, we want to help you understand why coverage matters even when you’re not behind the wheel of your own car.
Understanding Car Insurance for Rental or Borrowed Cars
Borrowing a Car: Are You Covered?
When you borrow a friend or family member’s car, you’re typically covered by their auto insurance policy if you have their permission. However, this coverage isn’t always as comprehensive as you might think. Here’s why:
● Primary vs. Secondary Coverage: The car owner’s insurance is usually “primary,” meaning it pays first in the event of an accident. If damages exceed
their policy limits, your own insurance (if you have it) may act as “secondary” coverage.
● Exclusions and Restrictions: Not all policies cover occasional drivers, and some may exclude non-household members. Always check with the vehicle owner and their insurer before borrowing a car.
● Liability Risks: If you cause an accident and the damages exceed the owner’s coverage, you could be held personally responsible for the difference.
Renting a Car: What Does Insurance Cover?
When you rent a car, the rental company will offer you several insurance options at the counter. But do you need them? Here’s what to consider:
● Your Auto Policy: If you have your own car insurance, it often extends to rental cars for liability, collision, and comprehensive coverage. However, this only applies if you have those coverages on your policy
● Credit Card Benefits: Some credit cards offer rental car insurance as a perk, but coverage varies and usually only applies if you decline the rental company’s coverage and pay for the rental with the card
● Rental Company Insurance: The rental company’s insurance can fill gaps, but it comes at a premium. It may include a loss damage waiver (LDW), supplemental liability, and personal accident coverage
Why You Still Need Car Insurance for Rental or Borrowed Cars
1. Protection Against Unforeseen Costs
Accidents happen, even to the safest drivers Without proper insurance, you could be on the hook for thousands of dollars in damages, medical bills, or lawsuits. According to the Insurance Information Institute, the average cost of a car accident with property damage in the U S was over $4,700 in 2023 Imagine paying that out of pocket!
2. Liability Coverage Is Essential
If you injure someone or damage property while driving a borrowed or rented car, liability coverage protects you from costly legal claims. Many states, including Texas, require minimum liability coverage for all drivers.
3 Mental security When Borrowing or Renting
Even if you rarely drive, having non-owner car insurance ensures you’re covered whenever you get behind the wheel. This type of policy provides liability coverage when you drive vehicles you don’t own, perfect for frequent renters or those who borrow cars often.
4. Rental Agreements May Require Proof of Insurance
Some rental companies require proof of insurance before handing over the keys. Having your own policy can save you money and hassle at the rental counter.
5. Avoiding Gaps in Coverage
Relying solely on someone else’s insurance or a credit card benefit can leave you exposed to gaps in coverage. Non-owner car insurance or supplemental rental coverage fills those gaps and keeps you fully protected.
What Is Non-Owner Car Insurance?
Non-owner car insurance is a special policy designed for people who don’t own a car but occasionally drive. It typically includes:
● Liability coverage: Pays for injuries or damages you cause to others.
● No physical damage coverage: It doesn’t cover damage to the car you’re driving.
● SR-22 filing: If required by the state for high-risk drivers. This type of policy is often affordable and can be a smart investment for frequent renters or borrowers.
How Pierce Insurance Group Can Help
At Pierce Insurance Group, we understand that every driver’s needs are unique. We work with multiple top-rated carriers to find the best car insurance for rental or borrowed cars in McKinney, TX. Whether you need a non-owner policy, rental car coverage, or just advice on your options, our experienced agents are here to help.
Ready to Drive with Confidence?
Don’t leave your financial future to chance. Contact Pierce Insurance Group today to discuss your options for car insurance for rental or borrowed cars in McKinney, TX Our team is ready to help you stay protected, wherever the road takes you You can also call us directly at (469) 2528001.
Read also : Understanding the High Cost of Car Insurance for Electric Vehicles