![]() Check with the auto dealer when leasing your car. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a “gap waiver.” This means that if your leased car is totaled, you won’t have to pay the dealer the gap amount. ![]() On a leased car, the cost of gap insurance is generally rolled into the lease payments. The difference between the two amounts is known as the “gap.” That’s because the insurance company’s check is based on the car’s actual cash value which takes into account depreciation. ![]() This refers to the fact that if you have an accident, and your leased car is damaged beyond repair or “totaled,” there’s likely to be a difference between the amount that you still owe the auto dealer and the check you’ll get from your insurance company. The leasing company may also require “gap” insurance. However, some credit cards provide collision coverage if the rental car is paid for with the card or check with your credit card company first. You have to buy this from the car rental company. Collision coverage pays for damage to the car you’re driving if you crash into another car or object or the car rolls over. However, non-owned auto insurance does not provide collision coverage. Public or livery conveyance driver#This pays for the cost of an accident involving a hit-and-run driver or a driver who has little or no insurance. The policy will also provide medical payments coverage for you and your passengers, and underinsured and uninsured coverage. Most insurers will not issue an umbrella liability policy unless the basic policies meet certain dollar limits of coverage.Ī non-owned auto insurance policy covers you for damage you may cause to someone else’s car and liability for injuries to its occupants, or to pedestrian, in the event of an accident. Umbrella liability insurance provides high limits of liability coverage above basic policies. In addition, if you’re thinking of buying an umbrella liability policy, a non-owner auto policy may meet the underlying auto insurance policy requirements. Instead of buying liability coverage from the car rental company each time you rent a car, you can purchase a non-owner auto liability insurance policy from an insurance company for about $300 a year which might be cheaper if you rent frequently. This type of insurance usually costs about $1 to $5 per day, but may be unnecessary if you are covered by health insurance or have adequate medical coverage under your auto policy. This provides coverage to you and your passengers for medical/ambulance bills. Frequent car renters sometimes find this more cost-effective than constantly paying for the extra liability coverage. If you don’t own a car, and rent cars often, consider purchasing a non-owner liability policy. It generally costs about $9 to $14 a day. If you have adequate liability coverage on your car or an umbrella policy on your home/automobile, you may consider forgoing this additional insurance. Generally, this does not offer enough protection in a serious accident. Rental companies are required by law to provide the minimum level of liability insurance required by your state. This provides excess liability coverage of up to $1 million for the time you rent a car. This type of insurance usually costs about $1 to $4 per day. You need to have receipts or other proof of ownership. ![]() However, if you have homeowners or renters’ insurance, you may be covered for items stolen from the car, minus your deductible. This provides coverage for the theft of personal items in your car. If you have comprehensive and collision on your own car, you may not need to purchase this coverage. This coverage generally costs between $9 and $19 a day. The CDW may be void, however, if you cause an accident by speeding, driving on unpaved roads, or driving while intoxicated. Sometimes called a loss damage waiver (LDW), this coverage relieves you of financial responsibility if your rental car is damaged or stolen. Rental car counter insurance can provide the following coverage: ![]()
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