My son does not own a car, and doesn’t have car insurance. He needs to rent cars multiple times in the next several months.
Does anyone know the best way to go about getting appropriate insurance (or even what appropriate insurance is)?
I suggested he to talk to our insurance agent, and he has some “high end” credit cards, so I suggested he check on the coverage they provide.
I suspect getting coverage at the rental counter is probably not the cheapest or best option, but I honestly don’t know.
Car rental counters do not offer liability coverage—helping you cover costs relating to injuring someone while operating your rental vehicle. This is a much bigger concern than the damage to the vehicle you can buy at the rental counter. Your insurance agent should be able to sell you a policy for non-owner liability.
I don’t own a car and frequently rent cars. I have a Chase MasterCard that came with a brochure to take to the car rental place to show them that I don’t need other insurance. He should check with the card issuers.
Hoping someone who lives in a place like NYC or Boston answers. So many people there don’t own cars, but rent when they need one. Surely they get insurance somehow!
Be sure you know what your CCard policy covers. Mine covers loss for damage to the vehicle but NOT liability to people injured. That liability is a much bigger risk that can run into a million or more.
Insurance policies are contracts. READ the terms. Only what is stated is covered by the the policy. Nothing more. CCard policies can send you the terms as well. Be informed. I have NEVER seen a CCard policy that covers liability.
Rental car companies do typically afford the option to purchase liability insurance. If you have your own liability insurance it is usually excess, but you can normally buy it on a primary basis if you don’t carry your own insurance. It will be expensive though. (Retired insurance coverage attorney here).
Can you tell me what types of insurance he needs to make sure he has?
From what I understand, it’s the following, but maybe this is too simplistic?
The rental car
Other people and their cars
Himself and his belongings
While an umbrella insurance is good to have, it is usually only available as secondary coverage to folks who have auto coverage (with very high limits). OP is asking for options for her kid who does not own a car.
Umbrella policies require you to have policies with minimum limits or the umbrella doesn’t apply.
For possessions in a vehicle, they are often covered by a homeowners or renter’s policy, though the deductible may be so high that it doesn’t help.
Normally CDW (collision damage waiver) which is the daily insurance they try to get you to buy when you get a rental car covers damage to the vehicle. Several CCard companies I have offer this as well, if you rent using the CCard. Double check if you are relying on the CCard insurance as to what you have to prove for it to apply.
The liability coverage is a separate policy. Many people who have vehicles have coverage for this under their policy that covers their owned vehicles.
I assume your son does not live with you and is not a college student temporarily away at school. If he falls in either of these categories he may be an insured under your policy. Auto insurance is very state specific, so I can only provide you with general guidelines. Liability insurance is needed to provide him with a defense and indemnity if he causes an accident resulting in bodily injury or property damage to another person. In some states the rental company may be required to provide him with the state minimum coverage, but this is not universal, so purchasing liability coverage is advisable. If he wants protection for himself if he is injured in an accident with an uninsured or underinsured motor vehicle he wants UM/UIM coverage. The rental car company will insist that he purchase insurance to cover damage to the rental vehicle as well as their loss of use while the vehicle is being repaired since he doesn’t have his own policy. My son recently rented a car in Florida and did not realize he could reject the insurance as he is covered under our policy. It cost him an extra $150 on a five day rental.
We use Insure My Trip and only put in the cost of the rental if he’s not doing more than that. Review the different policies on offer. Pick one with good ratings and be done. I’ve never had an issue and have used the provided insurance several times with car rentals. I have had to get a police report for one, the others I literally walked away. Well worth the $15-18 a day.