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Car insurance for non-car owners


With the price of gas and insurance getting higher every now and then, a lot of car owners are now giving up on their cars and commute instead. But what if you needed to go somewhere where there is a need for car rental or when you needed to borrow a friend’s or a relative’s car. With this situation, are you covered with any car insurance? Not a lot of people are aware but there is a type of auto insurance that can cover the driver even if he does not own the car;  it is the non-owner’s car insurance.

As earlier said, this kind of insurance covers all the damages that the driver could cause to other people’s properties when driving a vehicle he does not own and rented cars are an inclusion. It is easier for businessmen to take such policy for all they needed to do is add a non-owner’s policy on your commercial liability policy and you’re ready.

The coverage of the non-owner’s auto insurance policy is:

  • The property damage liability that covers the pay for all claims which are made against you and the legal fees when damage is inflicted to the car or property of other people.
  • The bodily injury liability that covers the payment for claims which are made against you and the legal fees in case you have injured or killed someone while driving.

When a car is borrowed, is the borrower covered by the owner’s insurance cover? Truth is, it all depends on the cost of the coverage. In case of car-related accident the borrower caused to another individual’s car, the borrower is obliged to pay the difference in the damages when the cover amount that the car carries had been exceeded. The worse is that when the accident led to the hospitalization of a person and filed charges against you then you could be too indebted.

What about in the case of rented cars? The car rental company may or may not cover the liabilities or of they do, they can only give a limited coverage amount. For individuals who rent cars for ten days or more yearly, and then they are recommended to purchase a non-owner car insurance.

Credit cards could also cover for the damages but most cards only pay for certain car types and some have limits while other cards provide comprehensive and collision coverage only.