Obviously, car owners know they are legally responsible to have car insurance, to ensure sufficient and adequate coverage for the vehicles they own. But not too many of us know there are companies that provide insurance packages to non owners of cars: the non owners auto insurance.
So, what exactly is this type of insurance and who needs it? As the name suggests, this insurance is provided to drivers who do not own a car. They are the people who use another person’s car as their own transportation.
You need non owners car insurance when you regularly borrow a relative’s or friend’s car to drive to school or work. Of course, you do not have the face to let their auto insurance pay for repair and medical bills incurred during an accident when you are the one driving. For sure, you will lose your relative’s or friend’s goodwill if you let such thing happen.
You also need non owners auto insurance when you rent a vehicle from a car hire company. The firm will oblige you to obtain coverage and will offer an insurance policy that covers damages to property and bodily injuries. Specifically, the car hire company will demand you to include to liability coverage collision coverage. Naturally, the coverage starts from the time you drive the car out of the parking lot of the company until you return it.
This form of vehicle insurance is also recommended if you drive a company car. While the vehicle may already have a policy paid for by your company, you do not know for sure know how much the company pay when an accident occurs. Remember, your company may just subscribe to the minimum coverage. It is always a wise decision to protected yourself by supplementing it with your own.
You have to obtain non-owners auto insurance from insurance firms rather than the car hire firm to make it much less expensive. It is quite possible to customize coverage and include all borrowed or rented vehicles. This will save you significant amount of time and energy purchasing new coverage whenever you have to borrow a car from a relative or friend or rent a vehicle from another car rental company.
You can buy online. But if you do not prefer online shopping, you can always hire agents who can guide you in finding the best non-owners auto insurance coverage. These insurance people will help you better understand complicated terms and details. The downside, however, of hiring insurance agents is that most will provide a little higher quote than online insurers. You have to remember that many agents are after commission.