How to Know if Your Insurance Covers You in Someone Else's Car

Insurance coverage is compulsory for all vehicle owners and obtaining an insurance policy appears to be very simple. Understanding all the clauses mentioned in the policy can be a cumbersome process for the people who drive the car. The two basic insurance policies usually available are 'Liability' and 'Comprehensive'. In most states, coverage for damage to non-owned vehicles, such as rental cars, is no longer provided under the 'liability' clauses. A comprehensive policy provides more coverage for at least one of your personally owned vehicles in order to claim compensation. You will not be covered for damage to vehicles that you rent or borrow under the Liability policy. The best way to determine this is by asking your insurance agent or the company at the time of purchasing a policy.

Instructions

1. Contact an insurance company or agent before purchasing a policy. Convey all the points that you want to include in the coverage.

2. Be sure that you understand all the clauses mentioned in the policy you are purchasing.

3. Get clarification from the agent or insurance company that the policy will cover driving a third-party vehicle.

4. Find out how much the additional collision and or comprehensive coverage will cost you.

5. Consult legal experts, if necessary, before paying the stipulated premium.

6. Choose wisely.

Tips & Warnings

• If you occasionally travel using a rented car, buy the insurance separately through the car rental company.

• There are instances when car owners buy insurance for others driving their car. For example, if you are driving your friend's car, he or she can tell if you, as the driver, will be covered in the event of a collision.

• Ask the rental agency if your credit card will cover you. Some credit cards do, eliminating the need to buy extra insurance.

• Get all assurances in writing

• Clauses in the insurance policies offered by different companies vary. The rules regarding insurance coverage varies from state to state. Some companies require the permission of the vehicle's owner for you to drive his or her car. Others require them to be with you in the car at the time, especially when there is an accident. Clarify the most minute aspect of every possible scenario. Ask questions no matter how obvious or inane.