Rental cars, ride-sharing and borrowed cars: whose insurance applies?

Rental counters offer several add-ons, such as a damage waiver or extra liability coverage. Some personal vehicle policies or credit cards already provide part of this, but not always, and not for every type of rental. Check your policy and card terms ahead of time.

In many cases, the car owner’s insurance is the first to respond when a friend drives it with permission. Your own policy may be second in line. Rules differ, so it helps to know the details before you borrow a car for more than a quick errand.

Personal vehicle policies often have limits or exclusions for commercial use, which can include driving for pay. Ride-sharing and delivery companies may provide coverage during parts of a trip, and some insurers sell add-ons for the gaps. Ask both the company and your insurer how it works in your state.

Peer-to-peer car sharing and short-term rental platforms usually publish their own insurance terms. Read them for the deductible, the limits and what happens if the car is damaged.

• Read the rental or platform terms before you click agree.
• Ask your insurer what your policy extends to.
• Take photos of any car you borrow or rent before you drive it.