If you find that you need to drive a vehicle often that is not under your ownership, you may want to consider non-owner car insurance. This type of insurance is available for drivers who often drive vehicles that belong to a company fleet, or for those who drive without owning their own car. Here are the basics you should know about non-owner car insurance.
Non-owner insurance will cover medical bills for you and other injured parties if you are involved in an accident while driving a vehicle not owned by you. It also covers liability for bodily injury and property damage. The limits of coverage will vary depending on the policy you choose.
There is no collision or comprehensive coverage with this type of coverage. This must be provided by the owner’s insurance. The no owner’s insurance only takes affect after the vehicles owners insurance coverage has reached its coverage limits. In other words, it is like supplemental insurance.
With this type of insurance, only one person can be on each policy. If multiple people drive the same car, it’s advisable that each person obtains their own coverage.
If it is a company owned vehicle, this insurance does not cover the driver if the vehicle is used for a work-related reasons only. Also, only passenger type vehicles are covered large vans and trucks are excluded.
If you own a vehicle, and just borrow or use some other vehicle, this insurance is not for you. Your policy for your personal vehicle usually covers you if you are operating any vehicle. Check your insurance policy to make sure.If you are planning to purchase a vehicle, you might want to wait. Once you purchase a vehicle you must add that vehicle immediately to the policy. This addition will cause an additional premium and will probably be more expensive than if you shopped for a policy for that vehicle.
If you regularly borrow the same vehicle, you can purchase a regular insurance policy for that vehicle that will give you all the coverage as the owner would have. It will cover repairs to the vehicle, medical and hospital costs to you, any passengers in the vehicle you are driving, the other vehicle, its passengers and any physical damage caused by the accident.
Non-owner car insurance is a limited form of insurance. It only covers you for medical and liabilities not already covered by the owners insurance policy. It is only useful if you do not own a vehicle, have no plans to purchase a vehicle, and regularly borrow a car. With this situation, it is protection for that possibility you cause an accident and there are injuries to yourself, others or property. This will cover you from any liabilities that would cause you financial loss. Remember, you will be purchasing insurance that will only come into effect after the vehicles owners insurance has reached its limits.