If you think car insurance is only for car-owners, think again. Car insurance, actually, is for car drivers – whether you own a car, or not. It is not as complicated as one might think, for auto insurance companies have policies catering to the needs both of drivers who own cars, and drivers who do not own cars.
Car insurance companies indeed offer insurance policies for non-owners of cars. This is called the non-owner auto insurance and is very practical for non-owners, i.e. those who usually rent cars, and those who borrow cars from family or friends. Non-owner auto insurance is usually preferred over one-day policies or car rental coverage, primarily because it is cheaper. Another reason is because one can enjoy the benefits of non-owner auto insurance without worrying over how long it lasts. One-day insurance policies obviously last for only a day, and the standard expiration of car rental coverage is until ten days. Besides that, car rental coverage is limited and in some cases do not carry liability coverage.
Non-owner auto insurance offers more than just its being economical and long length of expiry – it also offers non-owner liability coverage. There are two types of coverage offered under non-owner liability coverage: (1) the bodily injury liability coverage and (2) property damage liability coverage. Say, for instance, that you are involved in an accident while driving a friend’s car. Non-owner liability coverage would cover for claims made against you. In the event that bodily harm is incurred by either party, your liability coverage would cover hospital expenses and any other legal fees that might ensue.
The disadvantages of not getting non-owner car insurance, on the other hands, are adverse. Picture this scenario, you are involved in an accident while driving a friend’s car, and you do not have any auto insurance whatsoever. The insurance policy of the owner of the car (in this case, your friend), will have to pay for the damages and legal claims. You then find out that your friend’s policy is not enough to cover all the expenses. By virtue of the fact that you were the driver, you would be responsible for shelling out your own money to pay for the expenses. Having non-owner auto insurance would prevent you from shelling out money you would not have had to, if only you’d had insurance.
It is therefore wise to protect yourself and others from future financial problems by getting non-owner car insurance.