Car owners are not the only ones who need auto insurance. In certain circumstances, it might be necessary for a non-car owner to have coverage. If you do not own a car but drive a car occasionally, here is what you need to know.
Why Do You Need Car Insurance?
The thought of buying car insurance when you do not own a car might seem crazy, but there are some people who would benefit from having non-owner car insurance. For instance, if you frequently rent cars, having coverage would protect you if you are involved in a car accident.
Non-owner car insurance is also necessary if you frequently borrow other people's vehicles. For instance, if you borrow your sibling's car on a regular basis, his or her coverage might not cover the expenses related to an accident if you are the driver. However, non-owner car insurance would.
In some states, drivers who have a history of DUI are required to have a SR-22. If your driving privileges have been suspended, you might be required to maintain coverage for a period before your privileges are reinstated. Non-owner car insurance would help you meet the basic coverage requirement.
Is Non-Owner Car Insurance Always Necessary?
There are several situations in which buying non-owner car insurance is not always necessary. For instance, if you are frequently borrowing the car of someone in your household, you do not need the coverage. However, he or she would need to add you to his or her coverage as an additional driver. If not, there could be serious consequences if there is an accident.
You also do not need the coverage if your usage of other people's vehicles is rare. In addition to this, non-owner car insurance is not needed if you are driving a car that is used for business purposes. If you do not have a driver's license, you likely will not qualify to receive the coverage.
What Is Covered?
Non-owner car insurance is not the same as traditional car insurance. Although what is covered can vary by provider, in many instances, it only provides liability coverage. Comprehensive and collision are usually excluded, which means that you would still be responsible for the damages done to the car that you are driving.
Other perks that come with car insurance, such as rental reimbursement and roadside assistance, are also not included.
Talk to an insurance agent to learn if non-owner car insurance is right for you and to receive a quote.