Don’t have a car? You may still need to have a car insurance policy. Called non-owner auto insurance, this type of coverage can be a good idea, and in some states and circumstances, even required.
Non-owner auto insurance is a unique policy specifically for people who do not own a car. Provides liability coverage when you drive someone else’s car or a rental vehicle. Liability insurance pays if you are at fault for causing property damage or injury to others.
What Non-Owner Auto Insurance Covers
- Liability Coverage – If you have a non-owner auto insurance policy, you are covered in the event that property damage or injury to others occurs and you are the at-fault driver.
- coverage without insurance – The uninsured motorist coverage option pays for medical costs for you and your passengers if the other driver is at fault in the accident but is uninsured or underinsured.
- Uninsured Motorist Property Coverage – This is an additional option that pays for damage to your car or other property if the other driver is at fault but is uninsured or underinsured.
Why You Might Want Non-Owners Auto Insurance
In certain circumstances, it’s a good idea to carry a non-owner’s auto insurance policy, and it might even be necessary.
1. You drive other people’s cars.
Although car owner’s insurance usually covers the costs, if the costs exceed the policy limits, you may need to make up the difference. The supplemental payment for non-owner car insurance can be helpful. However, if you drive cars owned by people you live with, it must be listed on their policies, in which case you don’t need non-owners coverage.
2. You rent cars often.
In reality, paying for non-owners insurance may cost less than paying more for liability coverage sold by the car rental company. The downside is that non-owner car insurance typically doesn’t cover damage to the car, only the other driver’s car or injuries. Optional solutions include carrying a credit card that covers damage to a rental car or purchasing the collision damage waiver sold by the rental company.
3. You have a DUI on your record.
When you have a DUI or other serious offenses on your driving record, you may need to file an application with your state to reinstate your license. The forms you fill out require proof of insurance. If you have a non-owners auto insurance policy, you meet that requirement.
Not all insurance providers offer non-owners policies, so you’ll need to ask. Do you want to learn more about car insurance? Check out the EInsurance auto insurance webpage.
