What Drivers Need To Know About Non-Owner Car Insurance
Across all fifty states of the U.S., motorists are required to carry auto insurance. This legal mandate isn't always followed by everyone, particularly those who don't own a car but still drive.
You have to get from point A to point B. You have responsibilities, whether they are holding down a job, getting the kids to and from school, or just making sure your refrigerator is stocked with food. There are lots of reasons not to own a car and technically non-ownership means you don't have to buy auto insurance, but there isn't any good reason to not buy insurance. This is where non-owner car insurance comes into play.
What Is It?
Granted, non-owner car insurance is not a term you heard often. In fact, you may have never even heard of it. So, what is non-owner car insurance?
Non-owner car insurance is designed to protect the policy holder. Only one person—the purchaser—can be on it. The coverage is similar to liability due to its standalone nature. A standard non-owner policy offers property damage and bodily injury coverage. Depending on who you purchase the policy from, it can include coverage for uninsured or underinsured motorists and medical payouts.
What it's Not
What a non-owner car insurance policy lacks distinguishes it from standard auto insurance plans. It does not include coverage for:
- Collision
- Comprehensive
- Rental Reimbursements
- Towing and Labor
- Custom Parts
- Equipment Coverage
Also, this type of insurance will not pay if the car's primary insurance coverage limits have not been reached. You might think of it as supplemental to the vehicle owner's insurance.
Who it's For
A non-owner auto policy is not for everyone. There are four distinct situations where it proves useful:
- When the policy holder has been convicted of a serious traffic violation or infraction, such as a DUI or DWI charge.
- If you frequently rent cars and the policy is more cost effective than rental liability.
- You receive transportation through a car-sharing service.
- You regularly borrow a car or cars that you do not own.
Depending on the insurance provider, you can usually choose from different levels of non-owner vehicle insurance. For example, some providers may offer employer's non-ownership, hired auto, or any auto coverage. Is non-owner car insurance the right move for you? Talk to an insurance agent for details. It just may be the smartest protection you can buy if you don't own the car you drive. Look for insurance companies in your area, like bear river insurance.
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