Don’t own a car? You might still need to own an auto insurance policy. Called non-owner auto insurance, this kind of coverage can be a good idea and, in some states and circumstances, even required.
Non-owner car insurance is a unique policy specifically for people who do not own a car. It provides liability coverage when you drive someone else’s car or a rental. Liability insurance pays out if you are at fault for causing property damage or injuries to others.
What Non-Owner Auto Insurance Covers
- Liability coverage – If you have a non-owner car insurance policy you are covered in the event property damage or injuries to others occur and you are the at-fault driver.
- Uninsured coverage – The uninsured motorist coverage option pays medical costs for you and your passengers if the other driver accident is at-fault but uninsured or underinsured.
- Uninsured motorist property coverage – This is an additional option that pays for damage to your car or other property if the other driver is at-fault but uninsured or underinsured.
Why You Might Want Non-Owner Coverage
In certain circumstance it is a good idea to have a non-owner car insurance policy—and might even be required.
- You drive other people’s cars.
Although the car owner’s insurance usually covers costs, if costs exceeds the policy’s limits you might have to make up the difference. Supplemental payment from non-owner car insurance can come in handy. If you drive cars owned by people you live with, however, you should be listed on their policies, in which case you don’t need non-owner coverage.
Paying for non-owner insurance can actually cost less than paying extra for liability coverage sold by the car rental company. The downside is that non-owner car insurance doesn’t as a rule cover damage to the car, just the other driver’s car or injuries. Optional solutions include carrying a credit card that covers damage to a rental car, or buying the collision damage waiver the rental company sells.
- You have a DUI on your record.
When you have a DUI or other serious offence in your driving history you might be required to file with your state to get your license reinstated. The forms you fill out require proof of insurance. If you have a non-owners car insurance policy you meet that requirement.
Not all insurance providers offer non-owner policies so you will need to ask. Want to learn more about auto insurance? Check out the EInsurance auto insurance web page.