Yes, non-owner insurance does cover rental cars, in the sense that a non-owner policy will cover property damage and personal injury liability claims when you are driving any car that you do not own. Getting non-owner coverage may even be cheaper than buying liability coverage from the rental car company if you rent cars regularly.
It is important to note that non-owner insurance is liability coverage, meaning it will not cover damage to the car you are driving. It only covers damage that you cause to others.
What Non-Owner Insurance Covers
- Injuries to other drivers in accidents that you cause
- Property damage, excluding damage to the vehicle you’re driving
- Medical bills resulting from accidents
Depending on where you live, non-owner insurance may also provide uninsured motorist coverage and medical payments/personal injury protection coverage.
How To Decide If Non-Owner Insurance Is Worth It
If you plan on getting non-owner insurance because you often rent cars, a cost-benefit analysis will help you better understand if the coverage is worth it. On average, liability insurance for a rental car costs $61 per day, whereas non-owner insurance costs between $200 and $500 per year (up to $1.37 per day). Thus, non-owner insurance should be worth it if you need more than a short-term rental (over eight days).
To learn more, check out WalletHub’s guide to non-owner car insurance.
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