Non-Owners Auto Insurance

If you don’t own a car that you are planning to drive, you might consider buying a non-owners auto insurance policy. This type of insurance makes sense for rental cars and cars you are borrowing. Always remember – in the United States, it is illegal to drive in all 50 states without at least some form of insurance (liability insurance is always needed). So if you plan on driving, even if it is a car you don’t own, you need to make sure that you are insured!

Do you need non-owners auto insurance coverage?

Non-owners insurance is quite different than your average auto insurance policy in that it usually only includes liability coverage (see below). Most non-owners policies do not include collision coverage, comprehensive coverage, medical coverage, and roadside assistance. That is not to say you cannot buy these separately – they will just cost you a bit more. In addition, with non-owners insurance, you will typically not be required to meet a deductible before your insurance coverage kicks in.

When buying a non-owners insurance policy, you should make sure your policy includes these important coverage types:

• Liability Coverage – This will cover you for any damage done to other vehicles, property, and/or people. You need to have this in order to protect yourself from lawsuits and other legal troubles if you get into an accident when driving someone else’s car.
• Loss Damage Waiver – This is similar to comprehensive coverage in that it covers theft of a borrowed vehicle. This will protect you in case the car is stolen while under your care. Often times, if renting a car, your credit card company will provide this coverage complimentary.

In general, non-owner insurance policies are there for people who do not own any vehicles and do not have regular access to vehicles (this includes family cars, work cars, etc.). Non-owners policies also will only cover one driver. They are not like other car insurance policies where you can add spouses, family members, and other people in you household under you. Only the single policy holder will be covered.

So, if you own a car, non-owners auto insurance probably isn’t for you. It will only protect you when you are driving a car you that you have absolutely no ownership in and is not regularly available to you.

Non-owners insurance is not usually provided for any of the following:

• Cars registered to you or cars that you own that are not registered to you.
• Cars owned by people living under the same roof as you.
• Cars loaned to you.
• Cars that are available for you to use on a regular basis.

Adding non-owners insurance makes a lot of sense for people who rent or borrow cars often. Having a non-owners insurance policy can save you a lot of money in the long term. Rent-a-car companies often sell insurance policies over the counter, and can be as much as $100 per day. On the other hand, a typical non-owners insurance policy might only cost you a couple hundred dollars per year. If you drive vehicles other than you own on a regular basis, adding this type of insurance coverage might be a smart decision.

Without non-owners insurance, if you get into an accident with a borrowed vehicle, the owner’s car insurance policy should cover any damages up to the policy limits. As the driver of the vehicle, however, you could face some legal actions from the car owner or from the car owner’s insurance company. If you hold a non-owners insurance policy, however, you will be protected from these claims. This is why non-owners insurance is important.

Finding affordable non-owners auto insurance is actually not as hard as you may think. You can purchase non-owners auto insurance for all major insurance companies. Prices, however, will vary from company to company. To get started, use quote comparison websites to compare quotes. Do your research and find the policy that fits you best at a price you can afford.