Who Needs It?
There are some people that choose not to purchase a car. They could live in a city with excellent public transit, travel often or just not be able to afford one. When people don’t own cars, they often have access to cars belonging to friends or family or can rent a car easily. Most states in the United States mandate that the driver of any vehicle must have some sort of car insurance. Non owners car insurance allows non owners the safety of driving any car without breaking the law.
What is it?
Non owners car insurance is car insurance that belongs to a person that doesn’t own a car. Traditionally, people think that to insure something, they have to own it. That is not the case with car insurance. Because state laws mandate that drivers have to have car insurance, non owners car insurance is transferable to any car being driven.
Non owners car insurance is a limited type of car insurance. It normally only covers basic needs: liability, under or uninsured motorists, personal injury and in some cases medical payments coverage. There are many types of non owners car insurance to choose from but many have the same basic coverage. While they cover the basics, insurance agents make sure policyholders understand that there are things a non owners car insurance policy won’t cover. They typically don’t cover collision damage and cars owned by the policyholder are excluded as well. This car insurance is limited to only those who don’t own the vehicle that the policy was taken out for.
When does it kick in?
Non owners car insurance policies don’t normally become effective until the car owner’s insurance is exhausted. Once that policy becomes exhausted, the non owners policy will cover the balance remaining.
When driving a car, if there is an accident, the driver is normally held responsible for any damages and financial costs that come as a result. Having non owners car insurance allows the driver to know that if anything should happen, they won’t be handed a large bill and told to pay it.
Where to buy it?
Non owners car insurance is available through many of the traditional car insurance agencies. The difference is that these policies are not often advertised. When looking for a non car owners insurance policy, be sure to ask the agent what exclusions are in the package that’s selected.
The price of non owners car insurance is often a fraction of what a car owner pays. It is often more economical for car renters to purchase a non owners car insurance policy for their personal protection. The cost of non owners car insurance is calculated the same way as owners car insurance is, policy holders state of residence, driving record, how much coverage is selected, etc.
Once the decision has been made that non owners car insurance is needed, many people start their search online to get quotes. There are many free sites that will allow customers to input information and get quotes or calls from agents. Before signing any policy, it is always best to understand the policy limitations, if there are any.