When most people think about insurance, they think about protecting things they own. Your car, your home, your belongings, and other property can all have insurance coverage designed to protect you financially when something unexpected happens.
But what about something you don’t own?
Maybe you borrowed a friend’s vehicle. You rented a piece of equipment for a home project. You leased a vehicle for several years. Or you are using property that belongs to someone else.
The answer is: sometimes you can have insurance coverage for something you do not own, but the type of coverage you need depends on the situation.
Borrowing Someone Else’s Vehicle
If you borrow a friend or family member’s car, their auto insurance may provide coverage when you have permission to drive the vehicle. This is often referred to as permissive use.
However, coverage can vary depending on the insurance policy, who is driving, how the vehicle is being used, and the circumstances of an accident.
If you regularly use a vehicle that belongs to someone else, it is a good idea to talk with an insurance professional rather than assuming you are automatically covered.
Renting a Vehicle
Rental cars can be a little different.
When you rent a vehicle, you may have several options for handling insurance coverage. Your existing auto insurance policy may provide some coverage for a rental vehicle, depending on your policy. The rental company may also offer additional coverage.
Credit card benefits can sometimes provide rental car coverage as well, although the terms and requirements vary.
Before driving away in a rental car, take a few minutes to understand what coverage you already have and what additional protection may be available.
Leasing a Vehicle
A leased vehicle is another example of something you use without technically owning it.
When you lease a car, you will generally still need an auto insurance policy that meets the requirements of the leasing company. The lease agreement may also have specific insurance requirements, such as required liability and physical damage coverage.
Because the leasing company has a financial interest in the vehicle, your insurance requirements may be different from those for a vehicle you own outright.
Renting Equipment
What about things other than vehicles?
You might rent a trailer, construction equipment, tools, or other property for a project. Insurance coverage for rented equipment can depend on the rental agreement, the type of equipment, and your existing insurance policies.
For example, your homeowners insurance may provide certain types of coverage for property you temporarily use, but there can be exclusions and limitations. Business equipment and commercial rentals can also require different types of insurance.
That is why it is important to check your coverage before you rent expensive equipment, rather than after something goes wrong.
Insurance Can Protect Your Financial Responsibility
One important thing to remember is that insurance is not always about whether you legally own the item.
Depending on the policy, coverage may address your liability, meaning your financial responsibility if you cause injury or damage to someone else. Other coverage may protect the property itself from certain types of damage or loss.
The details matter.
A policy that covers one situation may not cover another, and the person who owns the property may have their own insurance requirements.
Before You Borrow, Rent, or Lease, Ask These Questions
Before using something that belongs to someone else, consider asking:
- Does my current insurance policy provide coverage?
- Does the owner’s insurance provide coverage?
- Does the rental or lease agreement require specific insurance?
- Do I need additional liability coverage?
- Are there deductibles or coverage limits I should know about?
- Are there exclusions that could affect me?
Taking a few minutes to ask these questions can help prevent an unpleasant surprise later.
Talk to ABQ Insurance About Your Coverage
Insurance situations are not always one size fits all. If you are borrowing a vehicle, renting equipment, leasing a car, or simply have questions about what your current policy covers, an insurance professional can help you understand your options.
Ready to review your coverage or get an insurance quote? Give ABQ Insurance a call.
Albuquerque: 505-217-2100
Rio Rancho: 505-433-6990
We are here to help you find coverage that fits your situation.
