Because of the rising prices of gasoline and the nuisance brought by congested streets, many have started to look for better and cheaper ways to move around and in and out of the city. Some have found the shelter of a car-sharing club where they can rent vehicles to use whenever they have important affairs to attend to. When you think of it, it is really a convenient way to have a vehicle any time you want without worrying about its price, maintenance, and storage while you are living in the city. However, even rented cars cannot be kept away from accidents.
If you do encounter an accident while using a rented vehicle, and found out that your club has no insurance to cover your expenses, then you are in big trouble. Although a number of these clubs have insurance policies for their cars, not all of them are willing to pay for your expenses. These are some reasons why you should not rely solely on their policy:
• You cannot blame anyone if a club pays you late, or it does not have any coverage at all.
• If a vehicle you have rented is brand new, it might not be included in their original policy.
• Some policy conditions may be ignored by the club which gives an insurer reasons to reject your claim.
• An insurance policy the club has purchased might have low limits to cover your loss.
Being just a club member, you have no control over the terms of their auto policies. That is why you still need a non owners auto insurance to pay for your expenses. There are special offers of this kind of insurance from well-known companies. This type of insurance provides coverage for cars that the driver does not personally own.
A non owners auto insurance policy usually includes the following types of coverage:
• Liability coverage (for property damage, injuries, or both)
• Medical expenses coverage
• Uninsured or underinsured motorists coverage
Since different states require different types of coverage, ask your local insurance agent how to get non owners auto insurance in your location. If you purchased an automobile while having this policy, it will automatically cover your new vehicle for up to two weeks.
In non owners auto insurance, it is important that you understand certain terms and limitations. This type of insurance will only take effect after the club’s auto policy is exhausted. Moreover, only names specified in the transaction will be covered by the same coverage. Talk with your agent regarding these things to avoid misconceptions and false hopes.