When you own a car, you must legally have auto insurance protection for it, but do you need auto insurance if you do not own a car? There is a type of auto insurance called non-owner car insurance. This type of insurance is specifically designed for a person that needs insurance coverage but does not own a car. If you are not sure what this is or whether or not you need this, here are a few things you should understand about this type of coverage.
What Does Non-Owner Insurance Cover?
If you do not have a car but end up driving someone's car, will that person's auto insurance cover damages if you end up in a wreck? Well, the answer to this can be tricky. There are times when the insurance coverage might cover the damages, but there are also times when it might not. To be safe, you can purchase a non-owner policy to make sure that you have protection. By having this, your friends and relatives might be more apt to allow you to borrow their cars if you need to go somewhere.
Non-owner auto insurance is only designed to provide liability coverage, though, and this is important to know and understand. In other words, if you cause an accident that damages someone else's car, this policy will provide coverage for that person. It does not protect you or the car you are driving, though. The owner of the car should have auto insurance that protects the car itself that you are driving.
Who Really Needs This Type Of Coverage?
There are several good reasons to get this type of coverage if you currently do not own a car, and here are some of the top reasons:
- You are a risky driver – If you have a bad driving record that contains multiple tickets or accidents, you are probably a high-risk driver. In addition, if you have ever had a DUI or any other type of serious driving crime, you are also probably considered a high-risk driver. If you fall into this category, you might not be covered under another persons' auto insurance policy, which means there would be no protection if you borrowed a car.
- You borrow cars – If you are in the habit of borrowing cars from friends or relatives, you should also get this type of policy. By doing this, you can protect yourself and your friends and relatives each time you borrow one of their cars.
- You want to keep your insurance – If you sell your car and will not be buying another one for a while, it might be wise to keep your auto insurance policy. This can help you build a good record with your insurance company, and this may protect your rates when you end up getting a car.
These are just some of the reasons for needing a non-owner auto policy, but an insurance company can help you understand other reasons too.
How Much Will It Cost?
The price you will pay for a non-owner policy will depend on several different things. The factors used to determine the costs include age, gender, and driving record. In most cases, these policies are very affordable. They are typically less expensive than coverage you would have if you owned a car, and this is primarily because the insurance company is not actually insuring a car. They are simply insuring you for the times when you drive someone else's car.
If you do not have a car but feel like non-owner's insurance would be beneficial for you, contact an auto insurance company to find out how much a policy would be.