Why you need non-owner auto insurance?


Non-owner auto insurance is useful when you drive a car that you do not own. In big cities, people often prefer to rent a car or borrow a car. Given high levels of traffic and high cost of parking, many people rent a car when they need to drive somewhere. In such cases, accidents need to be covered adequately. While the car owner’s policy will take care of most of the coverage, the non-owner insurance policy can help with the balance. Damages in cases of accidents may be quite steep and it helps to purchase non-owner insurance.

Non-owner insurance is also useful in business car insurance. This is when the business owner is handling goods or people that do not belong to his business. Consider a situation where you may be shifting from one state to another. You may rent a u-haul truck that you will drive yourself. But the truck does not belong to you. This is a situation that calls for non-owner insurance.

There are several benefits:

  • Low cost
    This option is usually much cheaper than availing of what is offered across the car rental counter. The savings may be to the tune of 30% to 40% which is a significant amount. More importantly, the non-owner policy may cover you for repeat trips in the same car. Take a look before you sign on. Most people are not aware that there are options.
  • Mental peace
    There will always that element of nervousness if you drive in someone else’s car. Even if it is legally rented car, what if there is an accident? It is always better to invest in a non-owner auto insurance policy for peace of mind. Sometimes, the very fact that you are driving someone else’s car may make you uneasy while driving! Neglecting to purchase adequate insurance may also result in a citation at a police check-point.
  • Useful for urban residents
    Urban residents increasingly prefer to drive only at times. The long hours spent on the road and the high cost of vehicle maintenance has put urban dwellers off cars. Non-owner insurance policies are great for such clients. They may borrow or rent a car with the full knowledge that they are covered for any accidents or mishaps.

Non-owner car insurance also keeps the car owner easy in his mind. He knows he has rented his car to a responsible driver.