Non Owners Auto Insurance
Owning a car in a city is often impractical, but many urban dwellers still maintain a driver’s license and use rental cars for weekend and holiday trips or borrow a family members or friend’s car regularly. Since these drivers may be without car insurance, they have to buy it through the car rental agency, which can add as much as $14.00 per day. For many drivers who don’t own their own car, non owners auto insurance can provide the coverage they need for a lot less than rental agency insurance.
Auto Insurance For Rental Car or Borrowed Vehicles
For drivers who only rent a car for two or three weekends a year, the cost of non owner auto insurance may not provide much savings, but for drivers who rent cars more often or for longer periods, this type of car insurance can provide significant savings for low car insurance rates. The cost of non owners insurance is low since rates are based on the amount of miles driven in a year, and non owners typically drive far fewer miles than drivers who own a vehicle.
When borrowing a car, drivers are usually covered under the owner’s car insurance; however, drivers should be aware that if an accident occurs and your friend’s car insurance company pays out on damages, repairs and medical bills, the insurer may file legal action to recoup their expenses from you, the driver. Non-owners car insurance prevents the auto insurance company from specifically finding you liable, and instead, your insurance company protects you and makes the payment.
Collision and Comprehensive Coverage Excluded
Non-owners car insurance usually provides enough coverage for the required state minimum car insurance. Collision and comprehensive coverage are excluded since auto insurance companies will only underwrite this coverage on owned vehicles.
However, renters can purchase a loss damage waiver through the rental car agency. The loss damage waiver states that the rental company will pay for any damage to the car that occurs during the rental period. With the purchase of the waiver, the renter is not held financially responsible for damage to the rental vehicle.
Other Non Owner Car Insurance Coverage
In addition to liability car insurance, non owner car insurance offers a form of medical payments insurance called accident protection. It pays for medical bills for injuries in a car accident by the insured, up to the policy limit.
In states where personal injury protection (PIP) insurance is mandatory, non-owner policies provide this coverage and non-owners may also purchase uninsured motorist coverage.
Personal-Effects Insurance to cover personal property in the rental car is another option.
Additional Advantages of Non Owners Auto Insurance
In many states, accident protection coverage, personal injury protection (PIP) insurance and uninsured motorist injury coverage will pay for medical bills and damages even if the policyholder is not driving a car. This makes sense since some states where PIP (no fault) insurance is mandatory, healthcare insurance may not pay for medical bills caused by a car accident.
Non owner auto insurance often pays for medical bills if the insured is a passenger in a vehicle or a pedestrian struck by a car. Laws may vary by state, so policyholders should check our State Guides for more information on the laws, regulations, and car insurance requirements in your state.
Free Car Insurance Quotes
Buying non owners auto insurance can provide savings over rental car insurance and give policyholders the same protection enjoyed by those who own cars for a much cheaper rate. Free instant quotes for non-owner car insurance is available online so drivers can compare prices and find a great policy.
By entering your 5-digit zip code, MyCarInsuranceRates.com offers consumers the ability to shop and compare car insurance quotes online from the best auto insurance companies in the country, like Nationwide, Allstate, GEICO, Progressive, 21st Century Insurance, Liberty Mutual, State Farm, Farmers, AAA, and AARP, helping our users find the best, cheap auto insurance available in the market.
Enter your zip code to begin a car insurance quote now and find cheap non owner car insurance.
