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Understanding Non Owners Auto Insurance


Not all drivers personally own their vehicle. With the increasing cost to acquire, maintain and fuel a vehicle, people are choosing to use the public transportation. In times when they need to use a car due to the distance of travel or other personal reasons, they would borrow a car from a friend or rent a car. The question is: are they obliged to get non owners auto insurance?

Drivers who do not own their vehicle are not obliged to buy auto insurance but it is practical and safe to get one. If they rent a car, the rental company may require the driver to buy non owners auto insurance. But the amount for the policy is usually included in the entire rental fee. The typical policy for such insurance includes:

  • Liability coverage ( which can be used to pay medical bills for liability)
  • Underinsured/Uninsured motorist coverage ( which covers additional cost for the car in case of damage due to accident)
  • Non owners auto insurance does not include comprehensive, towing, rental reimbursement and collision coverage.

Getting Separate Non Owners Policy

When you rent a car, you can get the above policies along with it as this is required. However, if you are planning to rent a car in long term basis, say once a wee each month, it is better to buy a separate non owners auto insurance as this is more economical. You will not pay the rental company frequently for the insurance. Instead, you will have freedom to find a provider who can offer you good deal for the said policy that will last a year. The rate may depend on the distance where you drive, the place you live, your driving record and other factors.

Aside from the fact that the non owners policy will be economical if you buy it separately from the car rentals, you can also use it if you get the chance to borrow car from a friend as well. If you meet accidents on the road, the auto insurance of your friend will be used first. However, if you are at default with the accident or if the auto insurance of your friend’s is not enough, you can use your non owner’s policy to supplement the expenses.

Just like with any auto insurance, the non owners policy is extremely useful when you drive a car that is not yours. It makes you a responsible driver and a borrower.