Tuesday, September 5, 2017

What you need to know about insurance: Part 2

This part of the series is mainly about insurance from the perspective of the renter but also, how it impacts the owner.

Many of us have already experienced the car renter's dilemma of whether or not to accept the car rental agency's insurance and protection options. Well, it's no different with Turo. A renter has the option of selecting "Premium," "Basic," or "Decline." However, many credit cards will provide comprehensive and collision coverage with no deductible as long as the renter "declines" the rental coverage.

This is where it gets murky. If you, as a renter, decline Turo's coverage, you also decline their liability protection. Not cool and it might leave you quite exposed to a lawsuit.

However, there's a strong possibility that as a renter, your own personal auto insurance's liability and comprehensive and collision carry through to your car rental even if you "decline" coverage. In my case, with Amica, that is the case but you have to check your own insurance provider to be sure.

The governing rules are heavily influenced by your own auto insurance policy and credit card. Here are the overarching principles.
  1. Your credit card might cover comprehensive and collision in which case you should decline Turo's coverage unless,
  2. If you have auto insurance, check with your insurance company to see if your liability protection carries over to the rental car. If not or if you don't have auto insurance, you should probably accept Turo's protection policy keeping in mind that you will most likely void your credit's card comprehensive and collision. 
In summary,
  1. If you have validated your auto insurance and credit card that provide coverage - decline the insurance.
  2. Otherwise, accept the coverage. The package that you select is your call. You can review Turo's packages here.
As an owner, your liability and comprehensive are covered by the car share service's policy you select for your car as covered in part 1. 

What are the Age Restrictions

If you've rented a car through a traditional car rental agency like Hertz, you'll see that they require drivers to be 25+. Additionally, only drivers that have been named in the contract (i.e additional drivers) are covered.

With the car share rental services, they each have different minimum age requirements and as far as I don't allow "additional drivers."

Click on Turo, Getaround or Outdoorsy to review their particular renter eligibility requirements.

These services all perform some level of driver validation as well.

Related posts:
What you need to know... Part 1 (as Owner)
What know know... Part 2 (as Renter)

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