Insurance is not one-size-fits-all. Firstly, there are many different types of insurance—medical, dental, vision, homeowners, renters, auto, motorcycle, life, etc.—each one covering a different part of your life and the various people in it. Like insurance policies, insurance providers are also not one-size-fits-all; local insurers may be more limited than larger, national insurers, especially when it comes to out-of-state coverage. If you’re in search of any auto insurance policy, your best bet would be to consult an online insurance comparison tool and compare insurance providers and their policy offerings.
To best keep yourself protected on your next road or business trip, consider the following before purchasing a short term auto insurance plan:
If you’re road-tripping…
In your own car
Map out the states you’re going through. If your state has less-restrictive minimum insurance requirements, you may need to look into a short term auto insurance plan to make up the difference, so you’re not leaving yourself exposed and underinsured. You could also update your current auto insurance policy with more comprehensive coverage, as opposed to getting a whole new insurance plan.
In a rental car
If you’re road tripping in a rental car, be sure to check with the rental car company that their coverage protects you across state lines, just like you would if your were driving your own car. Ask about their available multi-state coverage options and what you can do if they don’t have any. Also, compare the cost of a short term auto insurance policy for the duration of your trip.
If you’re renting…
From a rental car company
Most rental car companies require drivers to provide their own insurance or purchase an insurance plan from the rental car agency. Rental car companies’ liability-only automobile insurance policies can quickly become pricey, so if you’re frequently renting from a company like Hertz, Avis, or Enterprise, you may want to consider investing in a non-owner auto insurance policy, rather than paying for the additional insurance each time you rent.
From a car sharing company
Contrary to popular belief, you don’t always need your own personal insurance to drive a car; you do, however, need to be protected by some form of auto insurance in most states. In this technologically advanced age, drivers have a multitude of short term auto options. Car sharing services, like Zipcar, offer short term car rentals for the cost of a membership fee and supplemental hourly rate, which works out to cost much less than owning a car if you don’t drive very often. With purchase of their membership, drivers are insured wherever Zipcar operates. Car sharing services are perfect for those without unrestricted access to a personal vehicle, who may need to use a car more than once, and don’t want to purchase an insurance policy. With an annual fee and additiona per-hour charge, the Zipcar is yours. Plus, Zipcars are conveniently located throughout many metropolitan areas.
If you’re borrowing…
A friend’s car
Sometimes you’ll have a good friend who will lend you their car. In most states, it’s illegal to drive without insurance and your friend’s insurance may not cover you. Ask your friend about their insurance and if you’re covered. In all likelihood, you’ll want to invest in your own short term auto insurance policy to protect your friend, their car and your relationship with them.
Regardless of whether or not you own a car, how you acquire one for temporary or long-term use, and what your current insurance coverage (or lack thereof) is, the regulations in place from state to state need to be adhered to. By following the above strategies, you can ensure your own protection out on the open road.