Are You Insured When You Rent a Car in San Francisco?
Have you ever heard the story of the guy who purchased a used car in the Bay Area and then found out he was not insured when he rented it out? If so, you may be in the same boat.
The man found himself in an accident while driving his car to San Francisco. He got back into his car and drove home to get his insurance. He took his car to his insurance agent and explained the situation.
The agent explained that if the man was driving a rental, he was going to have to take out a full coverage policy on the car. He told him that even though he could keep the rental agreement and only pay for the deductible, he would not be able to drive his car to work again. In fact, he would not be able to drive anywhere without having insurance.
The man was then told by the agent that he would have to buy a new car. So he did.
If you are renting a car in San Francisco, then you are faced with the same predicament. You can either get your own insurance or buy your insurance at a rate you cannot afford.
Many private cars come with insurance included, but it is very expensive. It is difficult to find car insurance that will not cost a fortune. As a result, many people rent a car from an auto store or a mechanic and then rent their own insurance.
After the first or second time they rent a car and it breaks down, they are not covered. They have no insurance when they go to rent another car. They must try to fix their own car, or they may be fined.
To avoid this problem, many people choose to rent a car through a rental agency. They give them a security deposit, they pay taxes and registration, and they rent the car through the car rental agency.
The insurance is usually cheap because the agency buys insurance for the cars from their major insurers, rather than from their customers. They are not obligated to offer coverage that is a match for what you have.
If you want to drive that rental car, you must insure the car with the same type of insurance policy as the one you would have taken if you had purchased the car outright. This insurance policy must include collision coverage and comprehensive coverage.
A good rule of thumb is to only drive that car with it insured. You do not want to pay for a car that is not worth the wear and tear you put on it.
If you can't afford a car that is already insured, it is a good idea to find a car that is cheap and get the policy through the same agency that insures the car. You will still be protected even if your own insurance carrier does not.