There are some misunderstood aspects of non-owner auto insurance. It is widely believed that this type of insurance covers any vehicle the policy holder drives. This is not true and can cause many accidents not covered by insurance. There are plenty of limitations to this policy. Anyone availing of non-owners auto insurance should carefully study and understand the policy’s coverage.
There is no comprehensive or collision coverage for any vehicle a policyholder is operating when an accident occurs and coverage is applied. The policy does not cover repairs for damages for the vehicle being driven by the policy-holder. Liability coverage is limited only to bodily injury for other people and property damage to other vehicles.
Non-owner auto insurance was designed for persons who do not have vehicles of their own, and do not have steady access to a specific car, including work-related vehicles. No other driver can be added to this type of insurance. The policyholder gets coverage exclusively.
The following are some of the things that are not covered:
- Vehicles registered to the policyholder’s name.
- Vehicles the policyholder owns even if not registered in the policyholder’s name.
- Vehicles that are owned by the household residents.
- Vehicles loaned to the policyholder for regular use.
- Work-related vehicles or non-private passenger type of vehicles.
If you own a vehicle, you should not get a non-owner insurance policy. Such insurance only covers you when you operate a vehicle that you do not own, is not regularly available to you, or is not work-related.
If you obtain a vehicle after you have bought non-owner insurance, immediately add that vehicle after you get hold of it and pay additional premium if it is applicable. Many individuals make the mistake of buying a car and not adding it to their policy, assuming that it is insured.
You may think that it is not practical to buy non-owners auto insurance because of its limited coverage. Well then, consider this scenario: you borrow someone’s car to go to the mall. The vehicle is not registered in your name. You do not use that car regularly. The car owner does not live with you in the same house. The car is a private passenger vehicle. You are not driving it for a work-related purpose.
That is not exactly limited coverage. Bear this in mind if you are entertaining doubts on whether to buy a non-owner auto insurance policy for yourself or not.