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The Basics of Non Owners Auto Insurance and Its Coverage


At first bat, car owners obviously know that it is within their legal responsibility to take out auto insurance, as well as to ensure adequate and sufficient coverage for the cars that they own. However, not too many people know that there are insurance companies that do provide insurance packages to drivers who do not own cars – and this is in the form of non owners auto insurance.

So, what exactly is non owners auto insurance? This is actually the policy granted to drivers who do not own cars; the same people who borrow or use another person’s vehicle as their own transportation. Typically, this may be your cousin’s car that you drive to school or work simply because your cousin is out of the country for the summer. The basic policy for this type of car insurance does not really provide coverage that is as extensive or thorough as provided by regular packages. Still, this does not mean that you should not take advantage of such coverage because you never know when you  might need protection against injuries and certain issues that come about during the unfortunate event of a collision.

There is always the risk of having an accident when you are driving another person’s ride, especially when you do not have insurance of your own. You will definitely be held accountable for the damages incurred in the accident and these will be heavy if the owner of the car himself is without insurance as well. But with non owners auto insurance, you actually get a lot of benefits, including liability, medical coverage, PIP or personal injury protection, and protection against motorists who are uninsured or under-insured. These comprise the coverage of this type of policy.

The great thing about non owners policies is the fact that their rates and monthly premiums are considerably low, especially when you compare these to regular policies. This can be attributed to the fact that you are not really operating your own vehicle, which implies that this is a scenario that does not really happen that often. Thus, the possibility of you filing for insurance claims would be unlikely, which means profits for insurance companies. There are even some companies that charge just a few hundred dollars as annual payment for these packages.

With that said, for you to maximize the benefits of non owners auto insurance, you need to determine a few factors first. Focus on your driving habits – just how frequent do you drive another person’s car? If you do this frequently, then get as much coverage as you can. If you do not drive that much, then just go for the basics.