These are two circumstances that we often hear about from our customers, and they’re unsure of what they should do. Introducing our auto coverage expert and Customer Service Hero, Joe. He has info on two optional auto coverages that would help you out if you ever found yourself in a similar situation.
>> Joe: This is kind of weird being on camera right now.
>> Director: Take one, mark [slate]
>> Joe: Hey, I'm Joe. I work at Sonnet. I'm going to taking you through some optional coverages for auto insurance.
>> Joe: So, if you're driving someone else's vehicle and you get into a fender bender, you might want to make sure you've got damage to non-owned auto coverage on your policy.
>> Joe: This will actually cover you for your loss or damage to that non-owned vehicle whether it's rented or borrowed.
>> Director: Have you ever personally driven a friend's car?
>> Joe: I don't actually have a license. [laughs]
>> Joe: So on other hand if you get into an accident with your own car, we do have an optional coverage called transportation replacement, that will provide you with a rental vehicle.
>> Joe: So, customers that would be eligible for transportation replacement-- you'd need some liability and some form of physical damage on your auto policy.
>> Joe: Now, majority of people would assume that these coverages are already included within your policy but it's always best to check with your insurance provider and get in touch with them and please drive safely out there.
>> Joe: Again? [laughs]
>> Camera Operator: You nailed it!
>> Joe: Again! [laughs]
Damage to non-owned vehicles coverage
If you sometimes borrow a friend’s car or use a rental vehicle, this coverage was created for you. By adding this additional coverage, your insurance could extend to cover loss or damage to that vehicle. Plus, without it, you could be on the hook financially if something happens that isn’t covered by the vehicle’s own insurance policy.
Heads up! Different insurance companies will have different rules about lending your vehicle to someone else. Always check with your provider to make sure you understand what is and isn’t covered.
This coverage can give you peace of mind and it can save you money. If you’re renting a car, it can be a lot cheaper than purchasing coverage from the rental company. Typically, physical damage coverage can cost around $30 per day if you buy it at the rental counter. Whereas, it can cost as little as $30 for an entire year if it’s added on to your insurance policy.
Of course, there are some terms that apply. Here are some main pointers to know, but be sure to check with your insurer for particular questions.
- This coverage is only for
Canada and the US. So, if you’re planning on driving a little further, you’ll need coverage that’s catered to that country.
- Each insurer will have its own rules around the specifics, but there are limits to the weight and value of the vehicle. Basically, the vehicle needs to be comparable to your own. It’s pretty unlikely you’d be covered for damage to a Ferrari, or a large moving truck, if you own a Honda Civic.
- Damage is only covered for drivers listed on your policy. If you were sharing your rental with a friend and they had an accident, this coverage wouldn’t apply.
- You’re covered up to a certain dollar limit or a certain number of days each year (depending on your insurer).