Do I need a temporary car insurance policy?

If you’re planning to rent a car in the near future, or if you normally don’t drive but are planning to borrow transportation from a friend or family member to get personal business done, it pays to be aware of your temporary car insurance obligations and options before you borrow or rent a car.

It’s the law in the UK, US, and all of Western Europe that in order to operate a car on public motorways, you must have proof you’re insured against damage, personal injury costs, and liability costs.  If you’re operating a vehicle that is not yours, regardless of whether you’re renting or borrowing, it is your responsibility to make sure you have documentation of at least a short term car insurance policy.

Here are some specific cases:

• If you typically don’t drive a car, but need to rent a car, the auto rental agency will make available their in-house car insurance.  Before you sign, understand that you’ll pay far more than average if you use their policy.  For comparison, it’s relatively easy to get a Tesco car insurance quote online to find a cheaper short term insurance deal.
• If you have your own car and also have a long-term car insurance policy, your insurer might cover you while you’re driving another  auto.  Just be sure the coverage amounts are sufficient for your needs and comfort level.
• If you’re lending your auto to a friend, it’s important to ascertain whether your own insurance will cover damages the person might cause to your car in an accident, and it’s also important to figure out whether you might be held liable for damage that person might cause to someone else’s property.

It’s really fairly simple:  if you have a car, you might have damage and liability insurance already for driving a rental or borrowed car.  If not, your cheapest option is a third-party short term car insurance policy.