Most people would probably assume the first step in obtaining car insurance is that one has to own a vehicle. And what if you use cars of your friends, or rent cars, or you borrow cars from time to time, what do you use? That is when non owner car insurance is needed.
Young students who do not have cars of their own but have to borrow them to go buy groceries, or young men who have no cars of their own or even parents who sometimes hire a car for a weekend trip, non owner car insurance is reasonably priced to be able to cover them on the road.
This tutorial will explain everything you have to know about non owner car insurance starting from the definition, those who require it, its advantages and how to obtain it.
What Is Non-Owner Car Insurance?
A person who takes insurance but does not have a vehicle to drive uses a non-owning liability car insurance. It is useful in case of collision where an insured is operating the vehicle owned by another person.
Nonetheless, when you have non owner car insurance it does not protect against damage to the automobile you are driving. This implies that if the auto you’re operating is borrowed or rented and an accident happens, the insurance on the owner’s car or the rental contract will cover the damages to the vehicle. Any liability covering for those injured or damages caused to other parties in such an accident will be claimed under non-owner car policy.
Key Features of Non Owners Car Insurance –
Liability Coverage: This coverage will save you from problems caused after injuring some one or damaging others property while driving a non owned vehicle.
Excludes Vehicle Damage: It does not offer coverage for repairs to the vehicle you are operating.
Does Not Apply to Household Cars: It also cannot be used to provide coverage for a vehicle owned by other members of the same household It also cannot be used to provide coverage for a vehicle owned by other members of the same household.
Who Needs Non Owner Car Insurance?
Arguably non owner car insurance is not a must for everyone, however there are instances when non owner car insurance is essential. Below are some categories that it would be wise to consider:
- College Students without A Car
College students might not have personal vehicles but they tend to borrow cars from their roommates, friends and family. Therefore, non owner insurance is necessary for this group of people, because it guarantees them protection in the event that they cause an accident while driving. It is also beneficial to students who may rent a vehicle for school sponsored trips.
- Young Drivers With No Car Ownership
Non-Owner Car Insurance provides coverage for a specific vehicle without taking ownership of it. For a new or young driver who has started driving on occasions but has not bought a vehicle for himself, this insurance can be a less expensive option. Such an insurance can also assist young drivers in maintaining uninterrupted coverage, which in the future when they buy a car of their own will be able to decrease their premiums.
- Parents Renting Cars On the Occasional
Renting or leasing out a car can prove to be difficult for travelling panting parents as the rental car insurance can be expensive. But this insurance covers them with liability without having to pay additional charges at the lease counter. Thus not owning a car can be substantially cost efficient.
- Drivers Who Gave Away a Car or Sold One.
Internonwer insurane coverage for motorists or general consumers who sold off their cars or lost them is also available. Say you are biding a car in a year or so , but have recently sold one and do not wish to pay the higher costs at that moment, in such a situation non-owner insurance coverage can be handy.
- Рынок такси на один или более смены
In case you drive Uber only on a part time basis and use multiple vehicles. Non-owner insurance would be able to fill up the voids in normal rideshare coverage that is offered to the drivers.
Uses Of Non-Owner Coverage
A person might think “Why do I need to have non owner’s insurance? Can I not use the policy that the Car owner has?” Not really, here are some reasons why non owner car insurance is useful.
- Insurance of own property
The unfortunate reality is that accidents do happen. Liability coverage ensures that you are not paying all your money covering the medical bills or the damages to the property that was caused during the accident, potentially saving you a lot of money in the process.
- Relieves Tension When Using Other People’s Cars
Driving your friend’s or cousin’s car? Don’t want to have any tension about who will pay for the damages in case an accident occurs? This policy helps in that case as well.
- Helps With Renting Issues
Paying for a liability coverage every time you want to rent a vehicle can turn out to be far more expensive than having a non owned insurance.
- Assist People That Have Recently Started Having a Car Insurance
This is especially true for people who are young and are new to getting car insurance. Having gaps with car insurance make it difficult for a person when they want to start getting car insurance as they tend to pay higher because they lack a consistent record.
- Laws of the state
A non-owner policy in most cases is the easiest way to meet laws when you are mandated by a court or the department of motor vehicles to have SR-22 insurance due to situations like having a DUI.
How to Get Non-Owner Car Insurance
Contrary to the common perception, purchasing non-owner car insurance is not as difficult. Below is a step by step procedure that would assist in getting non-owner car insurance irrespective of one’s location.
- Evaluate Your Needs
Do you frequently borrow or rent vehicles? Are you obligated to have SR-22 insurance? Understanding your tendencies will assist in deciding whether non-owner coverage is applicable.
- Compare Quotes
When getting quotations, it is best to contact various companies that underwrite non-owner policies. Among such providers are GEICO, Progressive, and State Farm. Also, request them regarding specific features for infrequent users.
- Provide Necessary Information
You can expect to be quoted a price if you send in documents such as a driver’s license, history of driving or state where you dwelled.
- Review Coverage Details
Check whether the policy has limits in terms of liability that are in line with your state and personal preferences.
- Purchase and Maintain the Policy
If happy with the quote, complete the purchase and arrange for auto renewals in order to avoid lapse in cover.
Common Myths and Misconceptions About Non-Owner Car Insurance
People tend to mix up non-owner car insurance which is simple, therefore here are some myths that will get demystified.
- “The Insurance of The Car Owner Covers Me”
Not necessarily! The owner’s policy might be primary, but it could leave you exposed depending on the coverage limits and the extent of the damage.
- “I Drive Seldom and Thus I Don’t See the Need to Own an Insurance Policy’
Remember that even the act of driving occasionally comes with risks. Due to the fact that harsher consequences may potentially follow through 1 mistake, this reason does not justify the lack of driving insurance. Occasional driving is okay, it’s just a matter of how often you drive, and for this, no owner insurance works perfectly without costing much.
- ‘The Price is Too High’
Fortunately, purchasing non owner insurance won’t burn a hole in your pocket when it is compared to a standard auto policy, so consider if you do not have a car and need insurance so you can now afford it due to the economic factor.
- “Non-Owner Policies Cover the Car Too’’
Nope. The non-Owner’s insurance does not cover such insurance. Such policies only cover liability while the vehicle is being operated by someone else. Someone had to be the owner of the vehicle, and he or she is supposed to self-insure their vehicle against any physical damage.
Why Own Non-Owner Car Insurance?
A non owner car insuranc is beneficial, because it arms the individual with a certain level of security, a level of confidence and indeed in some instances even allow the individual to save some money. If you are a college student using a friend’s car, a parent renting for weekend trips, or a young driver who will eventually own a car, non-owner insurance is the insurance you need, it meets your demand.
It might be a good idea to analyze your driving behavior and consider how well you’re covered while on the road. Sure, there will be uncertainty on the road, but with the right non-owner car insurance, all the anxiety of constantly being in an unknown scenario will disappear, regardless of who’s car you’re in.
