If you are someone who does not own a vehicle, but drives around rented or borrowed vehicles for extended periods of time, it is recommended that you get yourself a non-owners car insurance. People who live in congested cities such as New York and Chicago where car insurance is at a premium, parking is limited and expensive, and mobility limited, forego buying a vehicle. Some inhabitants from these areas would from time to time drive cars especially if their work requires occasional travel. For these people and some individuals with special cases, non-owners car insurance is a good option.
With non-owners car insurance, policyholders are covered for any damages inflicted to the aggrieved party, be it property or person. Vehicles that they are driving are not usually insured in this type of policy, so any damages would have to be shouldered by the driver or if the car is insured, by the insurer of the car owner. Remember, this is a liability-only policy and does not provide any collision coverage.
If you use rental cars, some rental companies would offer you limited coverage for a fee, but it would be cheaper if you get yourself non-owners car insurance if you see yourself driving for more than 10 days in a year.
This type of insurance can be used for all types of arrangements, be it a rental car or a borrowed vehicle. If in the event that you were involved in an accident using a friend’s car, the insurance policy of the vehicle you are driving would be able to cover for damages incurred up to a certain extent. However, if the amount of damages exceeds that which is allowed by your friend’s policy, you can use your non-owners auto insurance to pay for the rest of its amount.
When shopping for this type of insurance policy, look at plans from different companies. Check the Internet for offers and call insurance agents or brokers for pertinent information. If you have an existing insurance with an insurer, ask if they carry this type of plan. While you are at it, also ask information about the assigned risk/program plans of insurance companies. This is a feature that each policyholder should be entitled to, so be informed on existing conditions of the companies you are researching.
Compare plans based on fees, coverage, terms and conditions, etc. Policy coverage and premiums vary, so look for a plan that offers the most bang for your buck. Normally, non-owners auto insurance costs in the range of $300-$500 per annum.
