Couple of Things You Want To Know About Non-Owners Auto Insurance

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If you do not have any idea or want to take advantage of non-owners auto insurance, it is best to spend time to read this article first before taking the plunge. Numerous types of insurance products are available in the market today. However, non-owners auto insurance coverage is one of the least understood type of policy in terms of coverage and limitations.

Many people believe that this policy will protect them from all types of road disasters. But this is not true simply because non-owners insurance is not a comprehensive nor collision type of coverage. In terms of coverage, it is only usable to pay for the injuries or property damages of the third party in case of an accident where you are the responsible driver. The amount that can be covered is indicated in your policy limits.

The reason why non-owners auto insurance exists is the fact that not all drivers own a vehicle. For instance, this type of policy is useful for those who commute to or from work wherein part of their job is to drive the company’s car for some official transactions or businesses.  In this setup, that person need not to be added to existing policy but only needs to provide his own insurance coverage through non-owners coverage.

As mentioned earlier, there are many limitations in this type of coverage. Few other more limitations are as follows:

  • The vehicle can that be covered if it is registered to the policy owner
  • If the vehicle is registered under his name even if it is owned by the policyholder
  • It is a non-private vehicle; owned by an employer as a company’s asset
  • The vehicle is owned by a resident in your household
  • And if the vehicle is loaned to you to service your needs on a regular basis.

Having said that, non-owners auto insurance is only able to protect you if the car is not listed within the boundaries mentioned above. Additionally, it is only usable after the original coverage that protects the car is exhausted. For example, you borrowed a vehicle from a friend for a weekend getaway, and then you run into an accident. What the insurance company would do is to first use the collision coverage of the vehicle and once the policy limits were consumed, it is only the time when you non-owners auto insurance coverage will take effect.

If in any case you already have purchased a non-owners auto insurance coverage, and then recently acquired a new vehicle, it is better off that you purchase additional coverage for your new car than to regret later on because it did not have the right protection. Always look at insurance coverage as an investment as it will protect you from financial worries and possible legal fights. Do keep in mind that your insurer will have no way of telling that you have a new car, and you, on the other hand, will never know what happens the day after tomorrow.

Non-owners auto insurance is an extremely limited type of policy. Personally, I would encourage you to add additional protection, which will serve us your fallback in case of temporary setbacks. Apparently, this policy is only advisable for people who need to drive a vehicle occasionally.