It sounds impossible to live in rural areas and not have a car. However, it is possible to live in urban areas and still not have a car. If you have ever had to park your car in a busy area or had it stolen, then you know what we mean. Owning a car in an urban area can prove costly and a hassle. What about the times when you need to buy large quantities of cars, such as an annual trip to Costco? Or when you need to travel far from your home to take the bus or train? You can rent a car or join a car sharing company.
Each one of these options has its merits. They can actually save you a lot of money when compared to buying, maintaining, parking, and insuring your vehicle.
Manhattan is a place where 75% of people don’t own a car. Here are some tips and options for those who are among them.
Car Rental
It seems easy to rent a car. You will probably choose a rental company based on the best rates, availability, and convenience of their location. There are other choices to be made, and these decisions don’t include the decision of whether you want a compact, medium-sized, or luxury car. You also need to decide whether you want the insurance they offer.
Remember that you should check with your credit card company before renting a car. They may offer insurance coverage if you use their card to pay. If you use your credit card, some credit card companies offer collision coverage.
You can also get car insurance. You won’t need car insurance if you don’t have a car. However, if you do have insurance check to see what coverage you have for renting a vehicle.
A non-owner policy from an insurance company can be a good option if you do not own a car, but intend to rent it out frequently. These policies are about $300 per year, and usually cover damage to another car as well as liability for injuries to the occupants or pedestrians in case of an accident. Non-owner auto liability policies will provide coverage for medical payments, as well as coverage for uninsured or underinsured passengers.
It does not provide collision coverage, which is what you need in the event that your rental car is damaged. This policy covers you if you decide to purchase it. You can add an umbrella policy to your non-owner auto liability policy to get more coverage.
If you rent a car only occasionally, it might make more sense for you to purchase the daily coverage at the rental counter. These are the types and levels of coverage they offer:
Collision Damage Waiver: This coverage typically costs between $10-20 per day. It will protect you from any financial liability in the event your rental car is stolen, damaged, or destroyed.
Liability insurance – This policy usually costs between $10-15 per day. It provides extra liability coverage up to $1,000,000 for when you rent a vehicle.
Personal Accident Insurance – This policy usually costs between $1-$5 per day and covers you, your passengers, and medical/ambulance bills. You may not need to buy additional coverage from the rental agency if you have adequate health insurance.
Personal Effects Insurance – This policy usually costs between $1 to $4 per day. It protects you from theft of personal belongings in your car. This coverage may not be necessary if you already have homeowner or rental insurance.
Car Sharing Programs
These programs, along with the brightly-colored fleet of vehicles, are becoming more popular in major metropolitan areas. If you are only going to use one car, why pay for a car that is parked in your driveway all week? Most car sharing programs charge membership fees that cover car and gas costs, as well as insurance and maintenance. Members may then be charged an hourly charge and a small mileage fee. These programs have one advantage: a driver does not have to own a car and isn’t responsible for parking, insurance, repairs, maintenance or any other issues. This is particularly annoying if your car is older.
These programs have environmental benefits, especially since sharing a vehicle reduces traffic. In traffic-jammed cities like San Francisco, taking cars off the road to reduce congestion and greenhouse-causing-gases just makes sense.
If you live in an area where driving is the norm, but want to switch to car sharing, it’s a good idea first to review how much mileage you drive each month and how often. Also, to determine which trips were essential and unnecessary. These programs may not work for those who are extremely dependent on their car. These programs work well for those who use public transport or only occasionally drive. Car share programs allow you to have the car you need, even if you don’t own one.
