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When Do You Need Non Owners Auto Insurance?


It is true that because of the very dynamic and rising cost of gas and other basic commodities, a lot of people are choosing to commute via public transportation for everyday travel. It has become more practical to do so. Just because you do not have a car registered under your name does not mean you are not to consider getting car insurance of any sort. Of course, you would like to be properly covered in case you will travel

somewhere for a trip and rent or borrow a vehicle. This is when non owners auto insurance plays its role.

Non owners auto insurance is being offered by most insurance companies to people who drive occasionally, but do not drive their own car. This usually includes liability, medical payments for injuries or death, and uninsured/underinsured motorist coverage. With that in mind, it can be surmised that comprehensive, towing, collision or rental reimbursement are not at all covered. Deductibles are generally non-existent in this kind of policy except when a certain state requires a minimum coverage for uninsured/underinsured motorist.

There are two scenarios where buying non owners auto insurance becomes cost effective.

  • If you rent a car for an average of 10 days per year, it is more practical to get your own policy. While it is true that there is a limited coverage offered by rental companies every time you rent a car, that can get pretty expensive too if you compute the costs.
  • Buy non owners auto insurance if you usually drive a friend’s or relative’s car, and even a company car. The vehicle you drive may be already insured especially if it indicates that every driver is covered as long as the use is permitted. However, the coverage may be limited and in most times, may not be enough. A third party might sue you and run after your personal assets to recover the rest of the cost of damages.

This coverage will generally cost you just about half the amount people who own cars shell out for their standard policy. You will probably just spend between $300 and $500 annually which depends on where you live, how clean your driving record is, and some other factors that usually affect insurance premiums. Other states require as much as $700 per year. In case of an accident, this coverage only kicks in when the vehicle owner’s policy is already used up. For instance, the damage reached $15,000 and the vehicle’s limit is only up to $10,000, then this coverage will take care of the remaining $5,000.