Insurance for Rental Cars in New York
Reader’s Question:
I live here in New York and usually rent a car whenever my own car is in repair. Do I need to have a separate insurance for rental cars?
Anna
Manhattan, NY
Rental car insurance is always a confusing matter for most of us. Renters buy supplemental rental car insurance for $20 to $40 per day for fear of what might happen if they refuse. What many of us do not know is that additional rental car insurance is mostly unnecessary if you have sufficient car insurance coverage. Before renting a car in New York, it is good to call your car insurance agent. Inquire about how much coverage you have on your car.
Generally, whatever deductibles and coverage you have on your car insurance would apply to your rental car. If you have removed the collision or comprehensive coverage on your car insurance policy, your rental car will not be covered if it was damaged or stolen.
Ask your agent if your insurance provider covers towing fees or administrative charges. Some car insurance companies cover these for their policyholders and may prove to be less expensive since you would not need to buy full coverage through the rental car company.
The next thing to do before renting a car is to call your credit card company. Companies like Visa, American Express and Discover may shoulder comprehensive damages to most vehicles. MasterCard offers secondary coverage to its platinum and gold card holders.
Do You Need Rental Vehicle Insurance in New York?
Reader’s Question:
I am from Mexico and I am going to New York for a business trip. I will be staying there for just a few weeks; however, I would still need to rent a vehicle to aid me in my work. Can I drive even with just my driver’s license? How can I get insurance if I only have my driver’s license?
Arthur
New York, NY
The International Convention on Road Traffic is formed to institute standardized reciprocal privileges on matters such as driving. This convention includes the United States and some 100 countries around the world. It includes an agreement on allowing foreign drivers to drive in the US using a private vehicle, on certain conditions only.
The NY State Department of Motor Vehicles states that a valid foreign driver’s license is considered to be valid too in the state of NY. However, this foreign driver must confirm that he is still a resident of his own country in order for the NYS to verify the validity of the foreign driver’s license. This foreign license is needed to get an international driver’s permit. This permit does not stand as a driver’s license but only a guarantee that the foreigner has a valid driver’s license in his home country.
Most car rental companies allow foreign drivers to rent vehicles provided that they are above 25 years old, have a valid license from their home country, and have an international driver’s permit.
Most insurance companies do not accommodate foreign visitors who don’t have US driver’s permit. There may be some who sell auto insurance policies but you have to show them valid foreign driver’s license and international driver’s permit. If the foreign visitor has an auto insurance policy in his home country, then he may ask the insurance carrier if they can cover a rented vehicle in the US.
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