Auto insurance is the only way to secure your car and your financial interests in the best way. It not only covers damages to the driver and covers but also safeguards the interests of passengers, pedestrians, and property damaged in the accident. Hence, it is highly essential to buy auto insurance if you own a car.
But what about taking insurance when you don’t own a car? Is that possible?
Yes, indeed, it is possible. With the non-owner car insurance, you can avail coverage for a driver without having a car. This type of insurance will pay off the damages and injuries due to an accident when you are driving someone else’s car. Non-owner car insurance is typically made for rental drivers and cab drivers.
Additionally, this insurance comes in handy when the owner’s insurance is not enough to cover the accidents’ repair and medical bills. So, technically, a car can have both owner and non-owner insurance, but the owner insurance will be utilized first.
Let’s take an example:
You have taken a non-owner policy worth $50,000 against property damage, and the owner of the car has property damage liability of $20,000. You drive the car and cause an accident resulting in damages worth $40,000, leaving $20,000 to be paid by you. Your non-owner policy will cover those $20,000 as you have higher limits.
However, it is important to understand that your non-owner’s policy will not cover the car damages or injuries. It is more suitable for those who regularly rent cars or drive someone else’s car.
How Can You Get Car Insurance Without A Car?
You can avail of car insurance without a car if you meet the following criteria:
● Have a valid license
● Do not own a vehicle
● No one in the household has a vehicle, or you don’t have access to that vehicle regularly
● You are driving a car owned by someone else
Once you meet these criteria, you can apply for non-owner auto insurance. It is important to choose the best insurance provider. Check out this site to find great insurance policy advice.
How Much Does Non-Owner Car Insurance Cost?
The cost of non-owner insurance keeps on changing with the changing requirements and market trends. Even though the cost of this insurance varies drastically, it is the most affordable policy among other insurances. In the eyes of insurers, customers who don’t own the car are less at risk than those who have their own cars.
Here are the factors that will influence the cost of non-owner car insurance:
● The amount of liability coverage required
● The driver history of the applicant/driver
● The geographical location
Depending on all these factors, the cost will be determined. You need to have a clean driving record in order to reduce the total cost. If you have many accidents in the driving history, this insurance may cost you more than the regular ones.
Your record will be considered risky if it includes:
● Reckless driving
● DUI conviction
● Traffic offences in a short period
● Driving without insurance
What Does A Non-Owner Car Insurance Policy Cover?
Before taking an insurance policy, it is important to understand your coverage benefits. Non-owner car insurance covers liability related to injuries, property damage, etc., due to an accident. It will not include your borrowed or rental vehicle if it is damaged or stolen when you are using it.
You might get some additional benefits on your policy according to your provision. So, it would be better to check out the rules and regulations in your provinces regarding non-owner auto insurance.
Here are the types of coverages that are not included in a non-owner insurance policy:
● Rental reimbursement
● Towing reimbursement
The non-owner coverage can be used as secondary coverage if you have borrowed someone else’s car. Some insurance providers may offer non-owner car policies that will extend to rental cars. Many rental companies also have dedicated insurance services that will offer non-owner policies to their rental drivers.
Is Non-Owner Car Insurance Made For You?
Now that you have understood all the nitty-gritty of non-owner car insurance, how would you know that it is ideal for you or not?
It is quite simple to understand if you drive a car that is not yours for a long or short period of time, it is necessary to buy non-owner car insurance.
Whether you are a rental or a student driver, you must have an insurance policy that will cover your injuries. If you are planning to buy a car soon, then having non-owner insurance is good to have consistent coverage. There are chances for getting discounted rates if you avail continuous coverage. It will also protect you from possible rate hikes.
If you are using a vehicle on a regular basis which is more than four times a month, you definitely need a non-owner insurance policy.
Who Should Not Buy A Non-Owner Car Insurance Policy?
There are different scenarios that state non-owner car insurance is not made for you.
● If you own a car and you already have auto insurance.
● If you are the primary driver of a vehicle, you cannot be eligible for a non-owner policy.
● If you are using someone else’s car for business purposes, you can opt for a commercial non-owner policy.
● If you are not able to get a valid driver’s license within 30 days, you might not get a non-owner policy.
The Bottom Line
Irrespective of your ownership of a car, you must have auto insurance. If you don’t own a car but drive it on a regular basis, you must opt for a non-owner car insurance policy. It is a customized car insurance policy where drivers can avail coverage without even owning the car.
All you need to do is approach the best insurance provider who can provide you with the best deals. In this article, we have covered all the necessary details regarding the non-owner insurance policy.
If you are considerate about your well-being and safety while driving someone else’s car, you must buy a non-owner insurance policy.