• How Non-Owner Car Insurance Works

    Non-owner Car insurance is a type of coverage that will protect drivers when driving a vehicle owned by someone else. If you do not own a car, but have the availability to use or borrow a vehicle from a friend, relative or company—this type of coverage may be for you. This coverage can also be useful if you rent a car.

    If you do not own a vehicle but have the use of a vehicle when needed, either borrowing or renting, you might be considering purchase this kind of insurance.

    Just by driving a vehicle, you are putting yourself and any occupants in the vehicle at risk from an accident. Once an accident occurs, especially if it is a major accident, there is a possibility of injuries that will require medical attention and possible hospitalization. There is also the damage to others property such as another vehicle, fences, buildings or structures. The driver of the vehicle deemed at fault will be responsible for the financial obligations caused by the accident and its damages. If the driver that caused the accident is not the vehicles owner, he will be responsible for any of the costs that exceed the limits of the vehicles insurance coverage.

    This non-owner insurance policy will cover the driver for any medical bills and any hospitalization costs to their self, any passengers in the vehicle and any injuries to persons hurt because of the accident. This insurance will also cover any damage or loss to the other vehicle involved in the accident or damage to any property.

    Purchasing non-owner car insurance is not a cure all for all situations, mind you. First of all you need to look at how often you will be using a vehicle not owned by yourself. You might be paying for something you will not have a need often. If you are renting a vehicle and paying with a credit card, many credit card companies include insurance for the cardholder when using their card to rent a vehicle.

    Also, this non-owner car insurance is a type of supplemental insurance and will only go into effect if the cost of the settlement exceeds the limits of the insurance policy of the vehicle. The non-owner insurance does not cover any damages to the vehicle you are driving.

    If you are using a rented or borrowed vehicle for business use this type of insurance will not cover the driver. It would be advisable to see if you are covered if you need to rent a car to attend a business meeting or driving coworkers or associates to attend a convention. Clarify what is considered as business use.

    If you are borrowing a vehicle, it is also advisable to check the limits of the car insurance policy the owner has on the vehicle and its coverage for drivers not listed on their policy. The coverage’s might be high enough that additional coverage for the non-owner is not necessary.

    Review your policy or discuss this situation with your insurance company or insurance agent. If you are planning to purchase a car in the near future, it might not be advisable to purchase a non-owner insurance policy. These policies are for a period of time and cannot be just canceled. If you purchase this type of policy and then buy a car, you must notify the insurance company and the vehicle will need to be added to your existing policy. The cost and coverage’s might be expensive and not adequate for your needs and you will be forced to stay with them until the policy expires.