Long term car subscriptions are booming in popularity. Sellers include startups like Kyte and Go, car manufacturers like Tesla, and rental car giants like Sixt.
Originally, most of these companies priced insurance into the subscription. That meant that they needed to manage the insurance across their whole book of customers, which is complex. And, sometimes the insurance wasn't quite right for some customers. That's especially true in situations where a subscriber might already have a leased or owned car in their household.
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As a result, there's been a move away from offering insurance as part of the car subscription in favor of letting customers choose their own insurnace. Sixt+ is one of the subscription companies that now offers this choice.
Here are some tips on how to decide if bring your own insurance is right for you:
- Collect the information you need from Sixt to make sure you meet their insurance requirements. They require physical damage for the vehicle, which means you need both comprehensive and collision coverages. They may have a maximum deductible you can choose, typically $500, so make sure to take note. They will also likely require you to purchase more than state minimum liability limits. Also make sure you know the correct corporate name and address for Sixt+ to get them listed on the policy correctly.
- If you already have another vehicle in your household, the easiest place to start is by calling your existing insurance company. Just give them the VIN number or the year make and model of the subscription vehicle, and ask them to run a quote to see how much your price will increase.
- If you don't have another vehicle, ask an insurance agent to quote you with a few different companies, or get two or three quotes directly from insurance companies. Make sure you tell them you have a car subscription and tell them Sixt's minimum insurance requirements.
- Compare both the prices and the coverages to the insurance packages they offer and choose which works. Be aware that if you are subscribing for more than a month, which most people are, your own car insurance will almost certainly not provide liability coverage unless you specifically list your subscription car on the policy.
- If you chose to buy your own policy, make sure Sixt+ is listed as an additional insured so they are also covered if you and they are sued after a crash. And they should also be included as a loss payee on the policy. If you damage their car, they get the payout, not you.
Check out our guide to insurance for subscription cars for the top ten questions about insurance for car subscriptions.