Do I get any coverage for my car or bicycle from my renter’s insurance policy?
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Asked April 7, 2014
Bicycles and automobiles are two different types of property in the eyes of insurance companies. Bicycles are typically low in comparative value, and are usually covered by renters insurance. Cars, on the other hand, are high value items that have mandatory insurance requirements that are beyond the provisions of a rental insurance policy.
Renters insurance includes personal property coverage. Personal property includes everything the renter owns on the rented property, but the limits of the policy make it difficult to use renters insurance to cover expensive items. Even if the car is not insured according to state laws, it would be much too costly to add to a renter's insurance policy and expect any kind of viable protection.
Cars must be insured in order to operate them on public roadways. This coverage includes protection for the car and any damages that the car may cause when operated by a listed driver. This includes insurance against injuries or damages as well as protection for the vehicle against theft, vandalism and other damages beyond the control of the vehicle owner. If the car were included on a renter's policy, it would not have sufficient coverage for problems that arise while driving the car.
Some bicycles are not well suited for coverage under a renter's policy, either. For example, a lightweight racing bike might eclipse the personal property value of the renter's insurance agreement by virtue of its market value. In this case, the bicycle should be protected separately with a policy tailored to match the risk of insuring it. This special coverage may not be necessary for the average children's bike, but it is strongly recommended for all expensive items, including bicycles, jewelry or other valuable property. If you have anything other than a standard, off-the-shelf bike, a separate policy is the best thing for the job.
Answered April 7, 2014 by Anonymous