Key Takeaways
- Zipcar provides basic insurance for members, eliminating the need for personal auto insurance.
- Members are liable for the first $1,000 in damages; Zipcar insurance covers beyond that.
- Additional damage protection is available for members without accidents in the past 12 months.
- Zipcar’s insurance meets state minimums, including bodily injury and property damage coverage.
Do You Need Insurance to Rent a Zipcar?
You do not need to purchase additional car insurance to rent a Zipcar because the company provides basic insurance coverage for its members.
This coverage is included in your Zipcar membership fee, which covers you for the duration of your rental, even if it’s just for a few hours.
However, you are liable for the first $1,000 of any accident costs. Zipcar’s insurance will cover any costs above that amount.
Members have the option to buy additional damage protection if they have not had an accident in the past 12 months, potentially reducing out-of-pocket costs in the event of an accident.
Personal auto insurance policies usually extend coverage to Zipcar rentals, potentially covering costs not covered by Zipcar’s insurance, thus minimizing or eliminating out-of-pocket expenses after an accident.
Who Pays for Car Damage in a Zipcar Accident?
In the event of a Zipcar accident, the individual responsible for causing the accident is typically liable for car damage fees.
As a Zipcar member, you may be held accountable for the first $1,000 in damage. However, if you are not at fault for the accident, you can seek reimbursement for this amount from the party responsible for the collision.
Zipcar provides insurance coverage up to $300,000 for an accident, which means if damages or medical bills exceed this limit, you could be responsible for the excess amount.
Because of this financial exposure while renting a Zipcar, I highly suggest considering supplemental car insurance to cover any costs beyond what Zipcar’s insurance covers.
What Does Zipcar Insurance Cover?
Zipcar insurance covers the following:
- Deductible: Members are responsible for the first $1,000 of any damage.
- Bodily Injuries: Coverage up to $300,000 for bodily injuries sustained in an accident.
- Vehicle Damages: Provides up to $25,000 for damages to the vehicle.
This coverage is designed to meet the state minimum requirements for car insurance, ensuring that members won’t face penalties if pulled over.
However, the coverage is basic and does not extend beyond the minimum needed to avoid penalties. It includes:
- Bodily Injury Coverage: This covers the physical injuries of all passengers in the Zipcar.
- Property Damage: Covers damage to the vehicle and other property, such as poles or fences.
- Personal Injury Protection (PIP): This covers medical expenses resulting from the accident.
- Uninsured Motorist Coverage: Protects you in case the other driver involved in the accident does not have insurance, covering costs that would otherwise be your responsibility.
It’s important to note that the coverage does not increase for accidents involving multiple injured parties or for the replacement of a Zipcar vehicle beyond the specified limits.
Zipcar’s insurance aims to provide essential coverage while meeting legal requirements, but it may be worth considering additional insurance for more comprehensive protection.
Is It Worth It to Get Zipcar Insurance?
Since a Zipcar rental comes with basic insurance, you know you’ll have some degree of coverage no matter what.
Paying for secondary coverage depends on your needs.
Pros of Zipcar Insurance
If you’re already renting cars through Zipcar, it’s nice that car insurance comes bundled with the fees you’re already paying.
People who don’t own cars don’t need to seek out insurance to rent a Zipcar.
You’re rewarded with a discounted rate for having a good driving record. Zipcar gives car insurance to safe drivers and offers damage protection plans to people who haven’t been in accidents or had moving violations.
You have the option of adding extra insurance to your Zipcar rentals.
You can add certain protections to your entire account, or if you’re only concerned about certain trips, you can add car insurance to each rental.
Cons of Zipcar Insurance
Zipcar insurance is somewhat limited compared to what you’d buy for your personal vehicle.
It will meet your state’s minimum requirements, but you might have to fill in the gaps.
Even with Zipcar insurance, you could be on the hook for up to $1,000 in damages.
This is a lot of money to pay out of pocket.
Zipcar insurance only covers up to $300,000 worth of damages.
In a car accident with multiple people, fees can add up quickly.
You might find that you reach that limit very quickly and are on the hook for the rest.
Related: Is Zipcar worth it?
How Much Does Zipcar Insurance Cost?
Zipcar insurance is included in the membership fee, which is either $7 per month or $70 annually. This basic insurance covers you without any additional cost as part of your Zipcar membership.
For those looking to reduce their financial risk further, Zipcar offers options for additional damage protection:
- Standard Coverage: Included with membership, members are responsible for the first $1,000 in damages, with Zipcar covering any excess costs.
- Plus Protection: For an added fee, your out-of-pocket expense in the event of an accident is reduced to $375, with Zipcar covering any costs beyond that.
- Premium Protection: This option eliminates any out-of-pocket expense in the event of an accident, with Zipcar covering all costs.
These additional protection plans can be added to your monthly or yearly subscription or purchased on a per-trip basis, allowing members to choose the level of coverage that best suits their needs.
How to Get Zipcar Insurance
Adding insurance to your rental during the rental process is simple, and only takes a few steps:
Adding Additional Liability Insurance (ALI):
- Select your desired rental car and proceed to checkout.
- Look for the option to add “additional liability protection.”
- Choose “Add protection” to include ALI with your rental.
- Review and confirm the additional fees for ALI before finalizing your transaction.
Adding Damage Protection to Your Account:
- Access your account settings and locate the option to “update protection” next to your driver’s name.
- Explore the available options of protection and select the desired damage protection level.
- Confirm your selection by clicking “update protection” again, applying this protection to all future rentals.
- If your account includes multiple drivers, repeat the process to add protection for each driver individually.
Wrapping Up
Using the car-sharing app Zipcar is a flexible, affordable alternative for people who don’t own cars. However, if you don’t own a car, you most likely don’t have personal auto insurance.
While Zipcar offers a basic insurance option, you should know all the details of what your rental covers.
Once you know how to update your damage protection and safeguard yourself against accidents, you’re ready to book Zipcars for any trip you’re going to take.
