A non-owner auto insurance policy gives you bodily injury and property damage liability coverage. In case you drive a vehicle that you do not own. (Important to realize, would otherwise have a regular car insurance policy on). If it is not enough to cover damages, that is when your non-owners policy acts as a second coverage. It is important to remember that non-owner policies don’t include collision coverage. That means that it does not cover repairs for the car you were driving. Only for the damage, you may do.
You need non-owner car insurance if you are worried the coverage of the car you are borrowing is not enough. Some providers offer medical payments and uninsured/under insured motorist bodily injury coverage. As part of their non-owner car insurance policies, if this interests you, just mention it during your quote. Some carriers offer liability coverage for rental vehicles, but not all of them do.
When do we need Non-Owner Policies?
- You’re not legally required to have non-owner car insurance if you don’t own a vehicle. Unless the DMV requires you to file a proof-of-insurance certificate to maintain your driver’s license. Due to a DUI/DWI or some other serious accident, an SR-22. In that case, a non-owner policy will be your only option if you don’t own a vehicle to insure.
- If you’re only going to be without a personal car temporarily, a non-owner policy is an affordable way to make sure that a lapse in insurance coverage doesn’t mean you end up paying a higher rate for regular insurance when you do purchase a car.
- When you rent a car, check and see what coverage is offered through your credit card or the car rental company. It may be cheaper to pay a one-time fee for insurance than to keep a non-owner insurance policy active if you don’t rent that often. Of course, if you’re regularly renting a car in lieu of owning one, a non-owner policy that offers liability coverage on rental vehicles will likely be your most cost-effective option.
How Much does a Non-Owner Auto Insurance policy cost?
Non-owners policies vary depending on your driver’s license record because insurance companies look at how big a risk you are to determine how likely it is that you’ll cause an accident when assigning rates. But still, if you have an excellent driving record your non-owner car insurance policy will roughly cost you 90% less than a comprehensive policy, even with a not-so-good driving record, it will be approximately 20% less than a comprehensive policy. You are the main factor to determine the rate. Where you live will also be a factor that determines your rate.
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