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Coverage to drive vehicles you don’t own

<p>You’re driving your friend’s car and you get into an accident – are you covered for damaging their car? Or, say you had an accident in your own car and now you’re left without transportation – how are you going to keep up with your daily routine?</p>

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.

Coverage to drive vehicles you don’t own

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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).
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Transportation replacement coverage

If you’re in an accident or your car is stolen, you’ll likely need another way to get around until things are sorted out. That can get expensive (and not to mention stressful). Thankfully, your insurer could provide you with a rental vehicle to keep your routine running smoothly.

Unlike the “damage to non-owned vehicles” coverage, your insurer can reimburse you for the cost of the rental car. Or, if a rental vehicle isn’t for you, you can be reimbursed for the reasonable cost of taxis or public transportation instead.

Again, we’ve listed some things to be aware of, but be sure to check with your insurer if you have other questions about the coverage.

  • The substitute vehicle should be similar to your own insured vehicle. So sadly, that Ferrari can’t temporarily replace your Honda Civic in this case either.
  • You’ll be covered with a substitution vehicle until your vehicle is repaired or replaced, or the claim is settled, or you’ve reached your policy’s limit for the coverage.

Who’s eligible for these coverages?

You may be eligible if you have liability coverage and some form of physical damage coverage on your policy, such as comprehensive and collision, all perils or specified perils.

Tip: Have you already got your car insurance with Sonnet? We call these coverages the Rental Extension Bundle. They come as a pair to make it easy for you to have all the coverage you need. If you qualify for them, you can add these coverages via your account, whenever you like.
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