Trust insurance companies to come up with policies that a normal person will not deem important. One example is the non owners auto insurance. This is not a regular insurance product and not all persons can consider getting one. Even if a car insurance is one of the most important among all policies, a non owners auto insurance is not readily applied for. Who is the most ideal person to be offered this policy? Someone who is:
- Not an owner of a car and usually commutes;
- Driving company cars for work;
- Renting cars for some trip; or someone who
- Borrows someone else’s car.
The importance of this kind of insurance is that although a car is normally insured, coverage is pretty much limited. For instance:
- A company car is minimally covered that payments for injury and damages may not be enough, and that the driver will have to shell out extra money;
- A rental car is required to have insurance, but in cases of accidents, drivers do not know how much the coverage will be; and
- A friend’s or relative’s car insurance usually only covers the one who owns it.
In effect, regular car insurance usually does not cover liability of drivers not listed in each policy. Imagine yourself diligently driving a car that you do not own and you met an accident. You realize later on that its coverage is not sufficient to pay for all repair costs and hospital bills. That will mean an unexpected expense on your part. A non owners auto insurance, therefore, gives a guarantee that no matter what happens, you are somewhat covered.
Like almost all other policies, this kind has loopholes as well. While it is advised for persons classified as above to get a non owners auto insurance, one must understand how it works. For one, it is limited. It only covers damage incurred when a vehicle is being driven by one particular individual, in this case, the policy owner. It also covers the vehicle only. There is an option to include personal injury and/or damage to second-party vehicle, but it cannot be full coverage.
The loopholes may make you think twice about getting this policy, and limitations seem to be a hindrance in making decisions. However, the peace of mind that comes with all insurance policies should be enough to tell you that if you drive cars other than your own, you need this. Ask trusty agents today or find useful information in the net. You will be surprised at what companies can offer.
