Insurance 101: What is a Non-Owners Insurance Policy?

You may think that if you don’t own a car that you couldn’t possibly need auto insurance. That if you do drive your friend’s insurance will cover you, but this may only be the case for the car, not you and your passengers. A non-owner car insurance policy can be valuable if you occasionally drive a vehicle but do not own one. It can also satisfy legal requirements.

A non-owners insurance policy provides coverage for the driver, not the vehicle. Liability, medical payments, uninsured and underinsured motorists coverages may be purchased on a non owner’s policy to pay for damages to you, your passengers, or others as a result of an unfortunate accident.

If the vehicle itself gets damaged the owner’s auto insurance coverage will kick in for coverages such as: comprehensive, collision, rental reimbursement, and roadside assistance.

An owner’s auto insurance policy may also have liability, medical payments, uninsured and underinsured motorist’s coverages, but they may not cover everything. If you drive someone else’s car and are involved in an accident, the vehicle owner’s insurance coverages and limits apply first. If these limits are not enough, then the non-owner insurance would kick in.

Here are four reasons to purchase a non-owners insurance policy if you do not own a car:

Drive Occasionally

You usually walk, carpool, or take public transportation, but every once in a while you borrow a car. A non-owners insurance policy would provide coverage as long as the vehicle is not owned by someone living in your household or is one that you have regular access to. If you drive your parent’s vehicle regularly, you should be added as a driver on their auto insurance policy instead of purchasing non-owners insurance.

Rent a Car

Buying insurance from a rental agency can be expensive. An alternative is to take out a non-owner insurance policy to cover your liability while driving a rental car. To waive any personal responsibility for physical damage coverage to a rental car, you would need to purchase a collision damage waiver from the rental agency.

Maintain Driver’s License

Depending on state requirements, you may need to have proof of auto insurance in order to receive or reinstate a driver’s license. A non owner insurance policy can satisfy these requirements.

Continuous Insurance

You may be without a vehicle temporarily. Having a non-owners insurance policy avoids a gap in coverage which will help lower your rates and earn discounts when you do own a vehicle.

Here are reasons not to purchase a non-owners insurance policy:

Own a Car

If you own a car, you should purchase an auto insurance policy. Get a quote in 5 minutes at www.acuity.com .

Listed as a Driver

If you are listed as a primary or occasional driver on an auto insurance policy, you have coverage when driving the vehicle. If you drive a family member’s or roommate’s vehicle, you should be listed as a driver on their auto insurance policy.

Business Use

If you drive a vehicle for business purposes, a commercial non-owner policy is better suited for this situation.

As your life changes, so do your insurance needs. To learn more about non-owner insurance and if it makes sense for you, talk to an Acuity independent insurance agent.