As its name suggests, non-owners auto insurance is a policy for people who do not own a car. This plan is formulated for people who drive a car that is not their own and protects them in case an accident occurs.
Non-owners auto insurance is different from other types of car insurance policies. It only offers you protection from injuries or property damage, and not coverage for medical payments and for the person you injured (if you are at fault) when you figure in a mishap. This type of policy allows you to buy liability coverage only. This policy usually costs $300 to $500 per year.
You need non-owners auto insurance if you are an employee driving a company’s vehicle. There is no excuse for you not to get one, even if your employer’s car is insured. Most of the time, the driver is not included in the company’s insurance policy.
You also need non-owners auto insurance if you do not own a car, but often rents out one. Getting this type of plan is more economical than buying limited coverage from car rental companies, which does not provide a year-round coverage.
Limited coverage being offered by rental companies only covers the damage of the property and it does not include medical expenses for the driver.
Whether you own a car or not, the risk is the same when you drive. However, unlike other regular auto insurance, this kind of policy is very limited. It does not cover all situations.
The downside for this type of insurance is that it does not have comprehensive and collision coverage. It is not possible to file claims if the vehicle you are driving is damaged by something, let us say, a tree fell on the car. You will also shoulder the expenses if a car hit you, even if it is not your fault.
Most insurance companies offer this type of plan. Only few will allow you to buy collision and comprehensive coverage. You can also check your credit card company if they are providing such a coverage. Most credit companies offer collision coverage when you rent a car using their card.
The policy of each insurance company is different from one another. Ask an insurance agent to help explain the complicated terms and details in the policy. Warning: getting quotes from agents are a little expensive. However, it is better to enter an insurance contract which costs more than to sign one without understanding the contract. In this way, you can be assured that you will get what you paid for.