Is Non Owner Car Insurance a Good Option

23 March 2022 Category: Auto Insurance

Is Non-Owner Car Insurance a Good Option?

Perhaps you drive occasionally, but you don’t have insurance. This is a unique and possibly dangerous situation. Driving without insurance is illegal, even if you only drive occasionally. Luckily, non-owner car insurance provides a solution.
Non-owner car insurance is a form of liability coverage for people who don’t own a vehicle but still need insurance. This type of coverage is perfect if you rent cars regularly or you have to show proof of insurance. The liability coverage protects you if you are responsible for causing an accident. The policy covers the necessary repairs for property damage, as well as the injured party’s medical treatment.

A Breakdown of a Now-Owned Car Insurance Plan

Non-Owned insurance covers your legal fees if you are sued due to causing an accident. Depending on your insurer, you may be able to add extra coverage to your policy. Medical payments coverage will take care of your medical treatment, as well as your passengers if you are injured in the collision. You will receive treatment regardless of whether you are responsible for the collision. You can also include uninsured motorist coverage in your plan.

Uninsured motorist coverage pays for your medical treatment if you are injured in a collision and the other person does not have enough liability insurance to cover you. Research your state’s laws, as uninsured motorist coverage may also cover any injuries you sustained in a hit and run accident. Remember that non-owner car insurance is a form of supplemental coverage. If you are involved in an accident while driving your friend’s car, their insurance will cover the damages, and your non-owner coverage kicks in once their limits have been exhausted.

Benefits of a Non-Owner Auto Insurance Plan

  • Frequently Using a Car-Sharing Service

    If you rely on a car-sharing service regularly, consider purchasing non-owner insurance. This will add an extra layer of protection to the minimum liability coverage already in place.

  • Adhering to State Laws

    If you’ve had your license suspended, convicted of DUI, or stopped for driving without insurance, state law may require you to file an SR 22 form. Non-owner insurance will protect you.

  • Avoiding a Possible Gap in Your Coverage

    If you don’t have coverage after your old policy lapses, that creates a coverage gap. Insurers will label you a high-risk driver because of the gap, and you’ll likely pay higher premiums the next time you obtain coverage. Non-owner insurance can help you avoid a gap in between policies.

Possible Exclusions

  • Multiple Drivers

    Non-owned car insurance policies only cover you. In some cases, you may be prohibited from purchasing coverage if you reside with someone who has auto insurance.

  • Personal Injuries

    If your non-owned insurance only has liability coverage, any injuries you sustain in the collision are not covered.

  • Vehicle Damage

    Non-owned car insurance does not include comprehensive coverage that protects the vehicle if it’s stolen. Any damage to the vehicle because of a collision is also excluded from the policy. If the vehicle’s owner has coverage, they can file a claim or inquire about the other driver’s liability coverage.

  • Personal Items

    Non-owned car insurance does not cover any damage to your personal items in the vehicle. You have the option to cover your personal items through your home or renters insurance policy.

  • Commercial Driving

    If you are using the vehicle to complete business-related tasks, non-owned coverage will not protect the vehicle if it suffers damage.

Consult With Massive Insurance & Financial Services

Your non-owner car insurance rates will depend on a few factors, including your driving history and the amount of coverage you need. If you have any questions, contact the experts here at Massive Insurance & Financial Services, and we will assist you.