Who Really Needs Non Owners Insurance?
Driving a motor vehicle comes with a serious level of risk. This is why every year millions of people all over the US spend billions of dollars buying comprehensive insurance coverage from brokers. They want to protect and secure their interests.
But you don’t own a car so you don’t need insurance, right? Well actually, that’s wrong. By law, individuals who own and operate a vehicle must have auto insurance coverage. However, if you have a license but do not own a car and only drive occasionally, you can benefit from having a policy option known as non owners insurance, which many insurance agencies offer.
Don’t know what non owners insurance is? Can’t see how you could benefit from having auto insurance when you don’t even own a vehicle? Want to know the costs and benefits associated with having non owners auto insurance?
Get answers to these questions below, and find out if having non owners insurance is a wise investment or a serious waste of money.
What is Non Owners Insurance?
As the name suggests, non owners insurance is an insurance product designed for individuals who drive, but do not actually own their own vehicle. If you drive occasionally and want peace of mind in the event that something unfortunate happens, such as an accident caused by you or someone else, non owners insurance is an ideal solution.
While this coverage type doesn’t offer as much protection as regular auto insurance, if an accident or other unfortunate circumstance were to happen, it takes care of any injury claims and helps to resolve issues brought forth by other parties involved, such as deductibles for vehicle repairs.
There are many scenarios in which having non owner car insurance coverage is a valuable asset, such as:
- Borrowing a vehicle: If you borrow a car (or truck or motorcycle) from a family member or friend, non owner insurance offers you coverage and protection while you operate the vehicle.
- Renting a car: Car insurance rates are expensive. You can save money and get exceptional coverage by getting a non owners insurance policy before renting a car from an established car rental company.
- Driving a vehicle owned by a company you work for: If you work for a company that has a fleet of vehicles, and are required to drive on occasion, it is important to have coverage with a non owner insurance policy. In fact, many businesses list this as one of their requirements for employment.
- Teenagers with learners permits: If you are the parent of a teenager with a drivers permit, non owner auto insurance can protect you both from liability, and provide adequate coverage if they get involved in an accident while learning how to drive properly and safely.
- Reinstating driving privileges after a DUI: If you get charged with a DUI but do not own a vehicle you can buy a non owners policy, and along with other documents, can file proof of valid insurance with the DMV and have your driving privileges restored.
Benefits of Non owner Car Insurance
Every time you drive without having any, or inadequate insurance coverage, you put yourself at risk for severe financial loss. If you get into an accident, whether it’s your fault or no fault of your own, you can be held liable for any injury or damages that result from the incident.
If you are not driving a vehicle you own, you should never assume that the owner of vehicle has enough insurance coverage to protect you if the unimaginable were to happen. There are many prominent benefits you gain from having a non owners car insurance policy, with basic coverage that includes:
- Liability Protection
Having liability protection covers you from being sued for damages including injury, loss of property and pain and suffering by other parties involved if you have an accident.
- Medical Payments Coverage
If you receive bodily injuries that require medical attention or hospitalization while covered by non owner insurance, the payments are covered by the policy.
- Uninsured and Under-insured Motorist Protection
Liability coverage also protects you by offsetting the extra costs payable if the owner of the vehicle fails to carry insurance or does not have enough coverage to protect you from loss if the unexpected happens.
- Personal Injury Protection
If you are involved in a collision or other mishap while holding a non owner policy, it provides “no fault” coverage and compensation for lost wages, medical expenses and additional damages, depending on the specifics of the policy.
- Maintain Preferred Driver Status
When you are ready to purchase a vehicle of your own and get a regular policy, insurance providers will view your policy as less of a risk if they see that you had drivers insurance coverage prior to owning your own vehicle.
- Rental Car Coverage
If you rent cars on a regular basis, having a non owner policy will save you a lot of money by providing low cost liability coverage. The only caveat is that you may need to purchase collision damage insurance from the rental company to supplement the non owners coverage (however, laws vary depending on your location).
- Prevent Lapses in Coverage
Insurance experts recommend that you avoid a lapse in car insurance coverage if at all possible. A non owner auto insurance policy can protect you during those times when you do not own an automobile.
- Multi-vehicle Coverage
Another benefit of having a non owners policy is that it is not tied to driving any particular vehicle. In other words, you get coverage when you drive any personal vehicle you have regular access to as long as it is not registered in your employers name, anyone living in the same home as you or your own name.
Even though non owner insurance offers exceptional coverage options and protects you with basic liability, it is important to note what this insurance product does not cover, such as:
- Collision Damage
No matter the circumstances involved, non owner insurance products never provide coverage for repairs or any physical damage done to a vehicle by collision.
Non owner policies do not offer the towing benefits that are usually a part of a regular car insurance coverage package.
- Your Own Vehicle
If you decide to purchase your own vehicle after having non owner insurance for some time, you must convert it to a regular car insurance policy, as non owners insurance does not cover self-owned vehicles.
- A Vehicle Owned by a Household Member
Motor vehicle insurance law states that every driver living in the same household should be listed on the relevant insurance policy. The frequency of access disqualifies this situation from the benefits of having non owner insurance coverage.
How Much Does Non Owners Insurance Cost?
The prices associated with non owner insurance are generally affordable but vary considerably based on a variety of factors, which include:
Once these and other relevant factors are taken into consideration, you can expect the policy to cost anywhere from as little as thirty dollars a month (due to factors such as low annual mileage rates), to as much as the average cost of regular auto insurance in your state.
While you shop around and compare quotes for non owner insurance, take the coverage limits for each policy into consideration and ask your insurance advisor about essential information regarding how claims are processed if an accident were to occur.
Use these factors along with the quoted cost associated with each option, to find the best policy for your money that also provides the coverage you need.
An area where non owner policies always offer savings is for car rentals. Car rental companies typically offer low liability coverage for high insurance rates. By purchasing a non owner coverage policy before renting a vehicle, dollar for dollar, you get more value.
But a quick word of warning; if non owners insurance rates are much lower than regular insurance rates in your state, never try to substitute one for regular coverage on your own vehicle. It may seem as though you are getting a bargain. However, if you are involved in an accident you will not be covered at all and you’ll also be held liable for any damages that occur.
So who really needs non owners insurance coverage? If you don’t own your own motor vehicle, you do! It’s important to have adequate insurance coverage if you plan to drive at any point in time, especially if you use vehicles owned by others on a regular basis.
If you were to get into a wreck tomorrow while driving a friend’s car, would you be covered? Or would your assets be in jeopardy? The cost associated with purchasing a non owners insurance policy pales in comparison to the high-level benefits you get from having one, such as protection from lawsuits and other liability claims.
Want to learn more about your non owner insurance options? Give us a call today to discuss your needs with one of our helpful insurance agents and get a free quote.