Nonowner auto insurance liability rental car coverage is available to people who want to protect themselves from being financially responsible for paying for damages caused in an accident. Car rental agencies offer liability coverage to customers as part of the rental agreement, but a driver can choose to buy a separate policy for this purpose.
If the driver rents a car on an occasional basis, the liability coverage offered by the agency will probably meet the driver’s needs. Premiums are charged at a daily rate and add up quickly, but a driver who doesn’t rent vehicles regularly will find that this is a reasonable option. Reading through the contract carefully before signing will reveal how much protection the policy provides and what types of losses are covered.
A better solution for a driver who doesn’t own a vehicle but who rents one regularly is to buy a separate nonowner auto insurance liability policy. This is also a good option for someone who borrows a vehicle from a friend or family member regularly. Liability coverage will follow the vehicle, but the additional coverage will kick in if the limit on the main policy is not high enough to cover the damages caused in the accident. Consider putting this type of protection in place when the owner’s coverage limit is relatively low to provide a higher level of protection if an at-fault accident occurs.