I get a lot of questions from my readers. Auto insurance questions are the most popular. Here is a very common question a lot of people are worried about when it comes to their auto insurance:
Is anyone who drives my car covered?
In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the policy and their spouse if applicable. There are some exclusions, so you would need to look at your particular policy to make sure. Remember, everyone in your household must be listed on your policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your policy. On the other hand, if you live separately, she could use you car with your permission and be covered.
Car rental insurance can be expensive. I rent cars almost every week and I’m always asked if I want to purchase insurance for my rental car. Although the coverage costs only a few dollars a day, it can really add up if you’re renting a vehicle for a week. Since I’m on business, I decline. My company would cover costs if I get in an accident.
What about if I’m on a family vacation?
I think that before you walk through the doors of the car rental company. Your own auto policy may provide your coverage. Call your insurance company and check before you get to the rental car provider. If your current policy doesn’t provide this type of coverage and you will be purchasing a rental car regularly, I recommend you call your agent about adding it. Another place to check for coverage is your credit card. Some cards provide a car rental collision damage protection service. Ask a representative from your credit card company to see if you are eligible for these services, and if so, what is covered. Often, you would need to charge the rental car on your credit card to take advantage of this benefit.
What are your thoughts??