You can still get coverage even though you currently don’t keep an automobile. Auto insurance for non-owners can protect drivers, who don’t possess a car, against liability arising from an accident they cause while driving someone else’s vehicle. It is an interesting concept that may appear to come with little apparent use but you will appreciate at the end of this post that it can be very helpful in many situations.
Why would anyone buy a policy when they don’t possess any vehicle? There are circumstances that may require you to have at least the minimum state required liability even though you don’t possess an automobile. And this may serve you well at times. We will look into this topic from several aspects, including usefulness and price.
– What Is Non Owners Car Insurance?
This is a type of policy that is bought by people who often drive vehicles that aren’t registered in their names. For example, in cities people enjoy good access to public transport, parking is expensive and keeping a vehicle is costly. That is why many people may shun away from possessing one but like to rent often where and when they need.
They can be a good solution for people who don’t hold or access an auto on regular bases like the ones belonging to a partner. And yet they like to hire or borrow someone else’s vehicle.
They usually provide secondary coverage to any other policy for the vehicle driven. But they can become primary if there isn’t any other liability policy in force, like in the case of rental cars.
– What Does Non Owner Vehicle Insurance Cover?
It is for liabilities arising from driving a vehicle, similar to provisions in typical policies. There are always risks of injuring other people or causing property damages to third parties when you are on the roads.
However, they are not underwritten for a particular auto, like it is the case for standard coverage. They can also include Personal Injury Protection for yourself and Uninsured Motorist Coverage for your medical bills and consequential losses, depending on providers and state you live. These extras may not come automatically but you may be able to include them.
– What Non Owner Automobile Insurance Doesn’t Include?
It is liability only coverage and don’t provide any protection for the car you drive. It doesn’t offer Collision and Comprehensive. So, you will need to make sure that people who lend you their cars have full coverage.
And you may need to arrange rental car Collision Damage Waiver to remove financial responsibility from you in case it is damaged while in your possession. However, you should check with the credit card provider as some of them offer free limited provisions for rentals.
– 10 Uses of Non Owners Vehicle Insurance
Such a policy might be for you if any of below benefits appeals to you or it allows you to comply with any requirements.
- Proof of Coverage: Licenses may be suspended or lost after serious traffic violations like DUI. A few states require them to fill SR-22 forms that act as proof. Regardless of having a vehicle or not, the state may still want proof of liability provision to let you get the license back. It is probably the cheapest way of satisfying this requirement in such a case.
- Frequent Renters: If you rent a vehicle more than 10 days in a year savings may be enough to pay for this policy. You may still need to buy damage waiver at either hire desk or from another source. Alternatively, the credit card may offer it for a fee or free of charge if you pay the bill with it. You should check with them, as not all of them come with it.
- Extra Asset Protection Solution: This is a good solution to supplement car-sharing service liability coverage, if you often use them or someone else’s auto. This is extra important for people who possess assets and properties to protect in case an accident victim sues them directly for causing the injuries. Lawyers would be quick to find out about a person’s ability to pay and they would love to push it to the limits.
- Driving Someone Else’s Vehicle: You may want extra personal protection from third party liability claims even though vehicle’s insurance usually includes you as an occasional driver. In such cases, vehicle’s policy would the first to pay for damages and injuries caused by you. However, non-owner auto insurance policy comes into play as secondary to deal with any shortfall once the primary limits are exhausted.
- Protection for Negligent Driving: Also, it protects the policyholder against direct claims for negligence. Others can sue the person behind the steering wheel at the time separately if they think he/she was negligent in the accident. Then, a legitimate claim would be compensated by it.
- Way of Avoiding Lapse: You may have sold your automobile and haven’t bought the next one yet. You can keep coverage going by cancelling an expensive policy for the sold car and buying cheap car insurance for a non owner. This may be better than allowing a lapse. You may have to pay a lot more when you want to get a standard one again if there is a lapse in record.
- Building History: You may be planning to buy an automobile in the near future. In the meantime, you may be renting or using friends’ cars. Finding cheap non owners automobile insurance coverage would protect you for driving someone else’s car and let you build a history in the same time.
- Peace of Mind: These products are valuable not only for the financial assistance they may provide but also they offer peace of mind. Knowing you have something to fall back to may be worth few hundred dollars you spend.
- Urban Motorists: If you live in an urban environment with good public transport and expensive city premiums you may choose not to keep a vehicle and rent if you need one. In this case, it can work out cheaper than buying liability each time. It provides the flexibility to hire, use a car sharing service or ask a friend for his automobile without warring about claims against you. Also, this flexibility can be all you need that you may not be bothered with purchasing anything, which is costly to keep in urban setting with expensive parking and premium.
- Convenience: You don’t need to worry about arranging it each time since there is something in place. You feel free to pick up a car from an airport or locally and less concerned about premium costs.
– Who May Not Need Non Owners Automobile Insurance?
You may not need to bother with it if you are a listed driver on someone else’s policy. Regular use of a partner’s, parents’, friends’ or employer’s cars may not require you to buy any other coverage, especially when you are listed. You can still arrange it for the other benefits listed above, though.
– How Much Is Non Owners Car Insurance?
The beauty of it all is that you can get them cheap from various sources including some of the top companies, like State Farm, GEICO and Nationwide. How much it will cost will depend on factors like history, age and where you live. Usually, you should be able to find it between $250 – $500 mark. In any case, the cost would be less than getting a standard liability because you travel less.
– Non Owner Auto Insurance Quotes
We may be able to provide you with quotes right here if you are convinced that you can benefit from a provision described above in detail. After all the talk it may be time to check prices and see if you want to go ahead with it. You can start on our platform above and see any of the carriers on the panel is happy to offer good rates.
As you can see, there are many solutions in the market. If this wasn’t for you there may be other products that can help you better. So, either search the enquiry online or run it through a broker and see what you describe is already available.