A non-owners auto insurance policy is a coverage contract meant for those who do not own cars. Yes, strange as it seems, even people who do not have their own vehicles can have coverage. Although this may be one of the most unheard of contracts in the insurance business, there are actually several reasons why you should get one. Here are five of those reasons:
The first reason is that state laws require every driver to get insurance. Yes, you read it right: driver. The law did not provide that only owners should get indemnity coverage. In fact, since people who do not have vehicles can apply for a driver’s license, they are required to procure non-owners auto insurance for themselves. The reason for this is simple: not all car owners can drive, and not all drivers own cars. That is your second reason as well.
The fact that there is a discrepancy between the numbers of owners and drivers was the reason why people thinking up insurance laws came up with non-owners auto insurance coverage. Let’s face it; a lot of drivers on the road do not take the cars they are driving under their own name. Chances are, they are using a rental vehicle or got one on a loan from a friend or a relative. Especially in the US where there are not that many mass transport systems, hundreds of visitors and residents get on the road with cars owned by others, or get someone else to drive their automobiles.
A third reason is that accidents happen to everyone – whether driver or owner. Statistics have shown that cab drivers are one group that most frequently get into accidents. There is also that known fact that they are not owners. Also, even people who rent vehicles for short day trips are required by rental companies to get covered for their own protection.
A fourth reason is getting indemnity coverage is no longer a luxury. Road trends have made it a necessity with increasing incidences of road mishaps. In relation to the third reason, bad things can happen to anyone. Getting insured is one way to make sure that you can always get out of any bad situation.
The last reason is you cannot estimate damages in advance. One feature of non-owners auto insurance is that a driver’s coverage amount will compensate for any deficiency in the coverage amount of an owner. This makes sure that an owner will always get a fair value for the damage to his automobile. This indemnity agreement is meant to provide wider latitude of security for all people on the road – owner or non-owner.
