Even if you don’t own a car, it can still be beneficial to get car insurance. Sure, rental companies might let you pay extra to insure a car that you rent if you don’t own insurance. However, if you rent cars a lot, you might find that you can save a lot of money by getting insurance that can cover cars you rent. You may even find it useful to get an extended liability car insurance plan if you often borrow cars from friends and relatives.
Ultimately, it is an individual decision that can only be made with context to your own individual needs and preferences. No one can make complex insurance decisions for you, but becoming an informed consumer can help make the process an easier one.
When to Insure as a Renter
If you don’t have car insurance yet you rent cars, don’t worry. In most – if not all – cases, you’ll be fine. If you only rent cars every now and then, you’ll just pay a little extra when you rent cars. This small amount is ultimately insignificant if you only rent a once or twice a year.
However, for frequent business travelers, the extra premium costs could quickly add up. You don’t want to be in the position of spending extra money each time in a way that ultimately adds up to more money than an insurance plan would cost.
It’s a good idea to sit down as a renter and make a cost-benefit analysis of how often you would have to rent a car in order for the benefits of getting a rent-specific plan to be worthwhile. You can end up saving money, but make sure you look at the costs and benefits of each first.
How Much Will It Cost?
How much will car insurance cost if you don’t own a car? It depends on where you live. It could be as little as half as much as a regular car insurance plan, but in some states, it could end up being a little more than half. Research and call around to see how much a plan like that would cost.
Different companies and different regions will, of course, have different costs and different coverage options. Finding one that suits you will mean factoring in how often you rent, where you drive, and how far you drive when you rent cars. An insurance company will work with you to determine the suitable plan for you.
Different People, Different Plans
The people who will benefit the most for renter-specific car insurance will tend to be people in cities or people who rent cars often while on trips. Urban dwellers tend to not own cars, but rather tend to rent cars on an as-needed basis. Those who neither own cars nor rent very often will probably not need to get this type of insurance.
It’s not an easy decision, and it is only one that can come after a lot of consideration of the variables. However, careful consideration can help you to come to a well-reasoned decision.
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