Can I get car insurance for a car that is rented or borrowed from someone else?

Can you get rental car insurance for a car that is rented or borrowed from someone else? If you intend to use another person’s vehicle in this way, you may be worried about the potential consequences and are looking for the best type of protection.

Or should you read a rental car insurance guide? We share your concerns and have researched the options for you below.

How can you get car insurance for a car that is rented or borrowed from someone else?

You may not need to get car insurance when you borrow from someone else so long as they permit you to use the vehicle.

This solution is known as “permissive use,” and the owner’s insurance policy may still engage in the event of any incident, even if you had your insurance. Some states, such as New York, require insurance companies to follow this doctrine.

What if you borrow the car from someone you live with?

Most insurance companies may require the vehicle owner to add you to their policy if you live in the same household.

Can I get car insurance for a car I don’t own?

Many insurance companies will not allow you to purchase coverage (other than non-owner insurance) if you don’t own the vehicle outright or have an insurable interest in it.

Some states insist that you have both a registration certificate and an insurance policy in the same name, so it is not possible to register and insure a vehicle separately.

Does non-owner car insurance cover rented or borrowed cars?

While the owner’s insurance policy will usually cover you when you borrow the vehicle, so long as you have their permission, you may also want to consider getting non-owner car insurance coverage.

This policy would cover collision or comprehensive car insurance, excluding physical damage to the vehicle. Still, it will extend to liability for bodily injury and property to others.

Read more: Does my car insurance cover damage caused by a driver who borrowed my car without permission?

How do you get car insurance for a rented or borrowed car?

Getting insurance for a car you rent from one of the major car rental companies is straightforward. Usually, the company will include basic insurance, or third-party liability cover, in the vehicle rental cost.

However, it’s very important to pay attention to your coverage levels and check how much car insurance you need in the event of any accident, whether the fault was your own or somebody else’s.

Read more: Does my car insurance cover damage caused by a friend who borrowed my car and got into an accident?

What coverage should you watch out for when insuring a rented car?

In the US, companies may not automatically include cover for damage to the vehicle itself. This option is known as CDW (collision damage waiver) or LDW (loss damage waiver) and protects you against collision or damage to the vehicle and theft or loss.

You may need to add this cover before they give you access to the vehicle, but you will also need to check the small print. After all, some policies may require you to pay an “excess” or the first part of any loss, although you may be able to pay extra at the counter to eliminate this.

Case Studies: Car Insurance for Borrowed or Rented Cars

Case Study 1: Permissive Use Coverage

John borrowed his friend’s car for a weekend trip. As a permissive user, John was covered under his friend’s insurance policy. Unfortunately, during the trip, John was involved in a minor accident. He immediately contacted his friend’s insurance company, who handled the claim and covered the damages to both vehicles.

Case Study 2: Non-Owners Insurance

Samantha frequently borrows cars from different friends and family members. She decided to get non-owners insurance to have her own coverage in case of an accident. One day, while driving her cousin’s car, Samantha was rear-ended by another driver. She contacted her insurance company and filed a claim.

Her non-owners insurance policy covered the damages to her cousin’s car and the other driver’s vehicle, as well as any bodily injuries sustained. Samantha was grateful for having non-owners insurance to protect her when borrowing cars.

Read more: Does my car insurance cover damage caused by a family member who is not listed on a policy?

Case Study 3: Lack of Coverage

David borrowed a car from his neighbor without considering insurance coverage. Unfortunately, while driving, David got into a collision with another vehicle. Since he didn’t have his own insurance policy and wasn’t covered under the owner’s policy, David had to personally cover the repair costs for both vehicles involved in the accident.

Getting Car Insurance for a Car That Is Rented or Borrowed From Someone Else: The Bottom Line

If you borrow a car from someone else and have permission, their insurance will be primary, and you may not need your own insurance. However, if you live in the same household and regularly borrow their vehicle, the owner should add your name to their policy.

If you cannot show that you have an “insurable interest” in another vehicle but want to take out some coverage anyway, you may be able to get a non-owners insurance policy. For example, when you rent a car from a rental company, you can buy insurance before receiving the vehicle.