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!
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.
Who Can Buy A Non Owner Policy?
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.
Advantages And Disadvantages Of Non Owners Auto Insurance
Like everything else in life, there are positives and negatives that come with the purchase of this type of auto insurance policy. Let’s take a look at some of them below:
Some particular aspects of non owner insurance policies can help occasional drivers remain legal and supply coverage for something that may occur during a trip. Take a peek at just how non owners insurance policies help people who need to occasionally drive without being named in the enrollment or title for your automobile.
- However, some car or truck renters only sign. They might not understand there are choices. One choice is taking out a non owner insurance plan that’ll insure you as a non owner of the vehicle for repeat excursions in a rental car.
- Another group who might need to acquire non owner policies are people who live in urban areas where possessing a vehicle isn’t crucial. Some of those parttime motorists want occasional insurance, which is where non owner policies can become a option for the trip in a ride.
- However, make sure you check with insurance companies about what types of employment relationships may invalidate non owner policies.
- Without this sort of coverage, medical expenses and more could fast swamp the driver’s financing, and in a routine road stop, they’d even be exposed to a citation. Non owner policies offer coverage for the “in between” driver.
- Besides all of what’s mentioned previously, obtaining a non owner coverage for ultimate trips is the safe and responsible thing to do. Some drivers who shrug off the capacity for an injury set the whole community in danger, as uninsured accidents ratchet up general prices for insured drivers.
Actually after looking at a number of the constraints of the policy, it is unclear to some motorists what sort of advantages a non owner policy would actually supply. Some experts would go so far as to state that a non owner coverage would just help a tiny percent of motorists on the street. Here are a few of the unattractive aspects and constraints of this sort of coverage, and a number of the explanations for why drivers don’t normally consider it a “great sell,” even though it might technically apply to a brief term scenario.
- That’s right, a non owner coverage won’t cover any harm to the automobile that an individual is driving.
- The non owner coverage also doesn’t cover work associated vehicles, vehicle registered to or possessed by the policyholder, or, according to some insurance companies, even vehicles the policyholder may have “standard access” to.
- This inclusion would frequently come cheaper than taking out an added non owner coverage for the non owning driver-and it is more efficient, also. The sole situation where this would not implement is if whoever owns the vehicle does not appreciably understand or trust the motorist – and if so, the owner would not be lending their auto to this man.
- As mentioned before, even some “work-related” scenarios do not lend themselves to a non owner insurance clause. Make certain to ask an insurance company what they mean by “work use” to get an automobile. Visitors considering normal non owner policies will certainly see these types of insurance policies might be applicable to quite specific arrangements, say, a valet parking job, or somebody who’s shuttling vehicles across nation to auctions. Nevertheless, even for all these uses, a policy holder must always check exclusions to make certain their policy is applicable to their scenario.
How To Get Non Owners Car Insurance
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.