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The Essence behind Non Owners Auto Insurance Policies


Gas prices are increasing by the day yet again and this is certainly affecting prices of auto insurance as well. In fact, the auto insurance industry is one of the sectors that have been suffering quite the hard hit ever since this problem with gas prices has gone awry. It is also because of this that a lot of people have opted to commute rather than drive their own cars – to be rid of problems concerning gas prices and insurance premiums.

Interestingly, commuters are even exploring other options, such as carpooling. Cab fares can still be quite high in the city so carpooling offers a better alternative. When you need to travel from one state to another, then you can rent vehicles. Even more, there are what are known as automobile-sharing clubs where if you are a registered member of one, you can rent a club-owned car by the hour. This is fine as long as no car accidents take place. However, problems arise when accidents do take place and you are found to be without non owners auto insurance.

If you rented a club-owned vehicle and you figured in a car accident, then you might think that the club will take care of any damages incurred in this accident. This might be true, but most of the time, this is actually false. More often than not, you are not in control of payments made by the club so you will not know if it is missing out on any payments so you might end up being slapped with a hefty bill in the mail.

A smart decision here is to take out non owners auto insurance. This basic policy provides liability coverage, medical payment coverage, and uninsured/underinsured motorist coverage. Liability coverage handles any property damages or injuries that incur while you drive your rental vehicle. Medical payment coverage obviously handles any medical payments incurred in effect to the accident. Uninsured/underinsured motorist coverage, meanwhile, handles all liabilities and associated costs incurred if the other driver involved in the accident does not have insurance to cover these expenses.

Driving a car always comes with risks. This is true even if you own the vehicle or you are just renting it – more so if you are just renting it. This is precisely why you need to educate yourself about non owners auto insurance and take out a policy of your own as well. For tips and techniques towards getting affordable non owners auto insurance policies, the internet is laden with sources that can greatly help you out.