Here are the 10 insurance questions we make sure all of our long term car subscription customers get answers to so they can make smart insurance decisions.

Here are the questions you need to ask about subscription car insurance:

1. Does the car subscription company include any insurance?
2. Do you have a choice about taking the car subscription company's insurance (if any) or not, and how much does it cost?
3. If the subscription car company offers insurance, what exactly does it cover (your liability as a driver, the car itself, roadside assistance, a replacement vehicle if yours is damaged in a crash)?
4. Is there enough liability coverage on your subscription car for your life situation?
5. If there is coverage for damage to the car included, is there a damage fee and how much is it?
6. If you're deciding between two car subscription companies, do you have enough information to compare the two insurance options?
7. If insurance is included in your subscription car, will it count towards a prior insurance discount if you do eventually buy a car?
8. If you're going to use the car for your business, does insurance included with the car subscription cover business activities?
9. How do you report a claim, and what happens if the car you subscribed to isn't drivable after a crash?
10. If you choose to bring your own insurance, what requirements does the car subscription company have?

Answers to the Top 10 questions about subscription car insurance:

Does the car subscription company include any insurance for you?

When car subscription companies first launched, most of them did include insurance for their customers. Increasingly, however, more of these companies are requiring customers to bring their own insurance.

Make sure you ask for the full information on any insurance that's included. You want to make sure that you'll have enough liability coverage (protects you if you're responsible for a crash) and physical damage coverage (pays for damage to the car). Also ask if there are any deductibles or payments you'll need to make if you have a claim.

Do you have a choice about taking the car subscription company's insurance (if any) or not and how much does it cost?

Ask this explicitly if you have a choice whether to take the subscription company's insurance or not. If you have a choice, get the price and the amount of coverage and go shop!

If you don't have a choice, you'll want to specifically check if there's enough liability coverage for your personal situation. You can always buy more liability protection, but paying the subscription company for coverage plus buying additional coverage may cost more than you were planning for.

If the subscription car company offers insurance, what exactly does it cover (your liability as a driver, the car itself, roadside assistance, a replacement vehicle if yours is damaged in a crash)?

Car insurance has a bunch of different parts. At the very least, you want to see enough liability coverage, which protects you if you're responsible for injuring someone else in a crash, and physical damage, or coverage for the car.

If you're getting quotes to compare the car subscription company's coverage with an insurance company's, you'll want to know if other coverages are included in either quote. There are optional coverages available, like roadside assistance or a rental car if yours is damaged in a crash. They may be included in a quote from your agent, and you can keep them if you want them or remove them if they're not useful to you.

Is there enough liability coverage on your subscription car for your life situation?

This is the biggest issue we see with car subscription company insurance. They often include the legal minimum amount of liability insurance or just a little bit more.

Minimum insurance varies by state, but can be as little as $10,000 per person. If you are responsible for a crash that causes injuries....$10,000 isn't going to cut it. And you'll be sued for the balance of the injured party's medical bills. You may think you don't own anything of value to be sued for, but in most states, your future earnings are fair game.

We recommend $100,000 per person/$300,000 per accident as the base minimum of insurance you should consider, with $250,000 per person/$500,000 per accident being a better choice for many people, and an umbrella policy over top of that if you have high earnings or prefer to take less risk.

If there is coverage for damage to the car included, is there a damage fee and how much is it?

The damage fees can be anywhere in the $500-$5000 range, and more if you subscribe to a luxury car. Make sure you've got the money to pay out of pocket in a crash.

If you're deciding between two car subscription companies, do you have enough information to compare the two insurance options?

Don't just compare the prices, make sure you've got a full list of the coverages included, as well as any out of pocket fees in the event of a crash.

If insurance is included in your subscription car, will it count towards a prior insurance discount if you do eventually buy a car?

When you buy a car and get an insurance quote, having at least 6 months of prior insurance often gets you a significant discount, often 10-30%. However, what counts as prior insurance usually only includes a personal lines auto insurance policy in your name.

Unfortunately, most subscription car policies that include insurance are using a commercial insurance policy, and while you are covered, it's not a policy in your name. That means that you won't qualify for the prior insurance discount until you've had your own car insurance policy for at least six months.

Worth keeping in mind if you're planning to buy a car and have the option of bringing your own insurance.

If you're going to use the car for your business, does insurance included with the car subscription cover business activities?

This one catches people up. Usually, car insurance that's included only covers person use (which does include commuting to work). If you're going to use the car for business, whether that's visiting clients or driving for Uber, you need a commercial insurance policy. You'll also want to make sure that commercial use is allowed by the car subscription company, as it often isn't.

How do you report a claim, and what happens if the car you subscribed to isn't drivable after a crash?

Make sure you understand what you need to do in the event of a crash, and that it's reasonable. And if you're depending on the car to get to work or school, ask if you can get a replacement car while yours is being fixed.

If you choose to bring your own insurance, what requirements does the car subscription company have?

Save yourself a headache. Make sure you have a full list of what the car subscription company requires you to have on your policy, and how to share it with them. And give that to your insurance agent, so they can quote you the right coverage the first time.

Conclusion

Car insurance through your subscription company can be a good option. Just make sure you ask the right questions so you understand what you're buying and how well you're protected.

We also have an overview of car subscription insurance. Check it out for more information!