Why you should always insure your vehicle when you rent it
Some renters might think they should be the ones who are responsible for insurance, but they might not be so sure.
The average annual cost of an automobile insurance policy in Florida is $722, according to the Insurance Information Institute.
But that’s not the case in most other states.
“Some states have a lower minimum,” said Brian Hays, a senior vice president with the institute.
“Other states have no minimum.”
That’s because of a number of different factors, including a lack of federal and state regulations on auto insurance and a lack.
Here are five things to consider when you decide how much auto insurance to purchase.
Why you might need auto insurance when you’re renting It’s important to know that you need to purchase auto insurance for your car in order to be insured.
“The rules are different in Florida and elsewhere,” said David Poynter, senior vice-president of the National Association of Insurance Commissioners.
“In Florida, for instance, the minimum requirement is $2,000 for each rental and $6,000 per month for every car you own.
“If you live in a state where you have an owner-occupied vehicle and your vehicle is damaged, the insurance company will need to have that property inspected and repaired,” Poyner added. “
“Then they’ll have to file an accident report for you.” “
If you live in a state where you have an owner-occupied vehicle and your vehicle is damaged, the insurance company will need to have that property inspected and repaired,” Poyner added.
“Then they’ll have to file an accident report for you.”
A rental car in Florida might be subject to additional inspections and repairs.
If the owner is the primary driver, that means the rental car might not have to be inspected or repaired as frequently as a regular vehicle.
“For the average rental, the average cost is around $1,000 to $1.50 an hour,” Poyer said.
“That’s why it’s important that you have insurance for the rental, because it will be the primary owner of that vehicle.”
What to do if your rental vehicle is stolen or damaged If you rent your car and it’s stolen, the rental company will likely require you to report it.
“Once the rental vehicle has been reported, the owner can go to the rental office and file a claim,” said Hays.
“Typically, it’s the rental property that is damaged or stolen.
So if the rental unit is not in the same condition it was when the vehicle was reported stolen, then the owner would need to report the theft to the police.”
In Florida there is a law that requires a rental car owner to report stolen or abandoned property to the owner, so if you rent a car and you’re the owner of the rental that was reported as stolen, that property will be held for police to investigate,” Hays said.
The rental car’s insurance will not cover the cost of replacing or repairing it. “
You may have to pay a fee, but it’s not going to replace or fix the damage,” said Poyners.
The rental car’s insurance will not cover the cost of replacing or repairing it.
How much will auto insurance cost?
Most rental car companies charge between $6 and $12 per rental per year.
Hays suggested that a $6 insurance policy would be enough for a rental that costs $3.5 million to repair.
If you live near a major metropolitan area, the annual cost would be about $15,000.
HAY: More info: AARP, Florida Homeowners Insurance Florida