Do You Need Car Insurance If You Do Not Own A Car?
If you drive a vehicle, even if you do not own it, you may need to have a policy to protect yourself and the vehicle owner. Lots of people who live in cities where transportation is common and cheap choose to go without their own vehicles. They may pass on car ownership to save money, be more environmentally friendly, or just to save trouble.
However, some of these people do need to use a vehicle several times a year. They may rent or borrow a car quite often. If so, a non owner policy may be the most affordable and convenient option. Frequent renters will surely save money by buying their own policy. Even if you just borrow cars a lot, having your own policy is a safer way to protect yourself.
How Much Do Non Owner Policies Cost?
Prices will vary by location, type of coverage, and drivers. However, you can usually purchase a typical policy for a few hundred dollars a year. The rates are lower than they are for covering a vehicle that you actually own and use every day.
You can purchase a non owner policy from any auto insurance company in your local area.
When Do Non Owners Need Policies?
The most obvious example of a non owner needing auto insurance would be in the case of renting a car. Sure, you can always purchase a policy at the rental company, but these cost several dollars a day. If you rent often, the charges can really add up.
Some credit cards offer to extend certain coverage when you use them to pay for car rentals, but the exact coverage varies. It may, for example, cover the car you are driving, but not damage to other vehicles or property. A non owner policy usually includes liability, so it should pay for damage to other vehicles and property. You need to have liability insurance in order to drive legally in every US state.
Even if you just borrow a vehicle, you may need to be covered to be responsible. The owner's policy will cover damage to the car. But what if the owner only carries liability insurance, and you damage his or her own car? In order to pay to fix the vehicle, you should be covered.
Even if the owner's policy covers everything, he or she may not be happy because you caused a claim against a personal policy. The responsible thing to do would be covered yourself.
You also have to consider the possibility that the vehicle owner does not have proper insurance at all. If you operate an uninsured vehicle, and you have an accident, you will be in trouble without your own policy. Why take a chance?
Is Non Owner Car Insurance Cheap?
I would have to say that non owner policies are a much cheaper alternative to purchasing rental car insurance at the rental company if you do it often.
It will also be a lot cheaper than being liable for thousands of dollars in claims or damage!