Here's something many drivers don't know: You don't need a comprehensive auto insurance policy if you drive regularly but don't own a vehicle? Non-owned auto insurance is rapidly becoming popular among drivers who skip car ownership but want to operate vehicles safely and legally.
In this quick guide, we'll share everything you need to know about non-owned auto insurance so you can decide if it's the right choice for your driving habits and needs.Find Cheap Auto Insurance
What Is Non-Owned Auto Insurance?
A non-owned auto insurance policy is for drivers operating vehicles they don't own. Unlike conventional policies, which are designed for vehicles, non-owner auto insurance coverage is tied to the driver. Simply put, it provides liability coverage when you drive a rental or borrowed vehicle. This policy allows them to drive legally and secure basic coverage to cover damages in the aftermath of an accident.
Who Should Consider Non-Owner Auto Insurance?
Non-owned car insurance caters to drivers who don't own the vehicles they operate, including:
Many people regularly rent vehicles for business trips, leisurely getaways, or commuting in new cities. Non-owner insurance is a cheaper alternative to coverage provided by rental companies. Carrying basic liability insurance for any vehicle you drive helps ensures you drive legally and covers damages caused by accidents.
Thousands of drivers frequently opt for car-sharing services like Car2Go or Zipcar. These individuals can protect themselves from the aftermath of an accident they cause that leads to injuries or property damage.
Many individuals who don't own vehicles borrow from their peers (family, friends, coworkers, etc.). Some even use company cars and regularly switch, depending on the circumstants. In these cases, having essential liability protection can offer peace of mind knowing you're covered.
What Does Non-Owned Auto Insurance Cover?
Non-owner auto insurance protects drivers who don't own the vehicles they drive. Here's what this policy typically covers:
Non-owner car insurance provides liability coverage for:
If you're at fault in an accident, your non-owner coverage policy can cover medical expenses and rehabilitation costs for the victims involved. It ensures you won't have to cover these expenses out of pocket.
Non-owned car insurance can also cover repair and replacement costs for the victim's vehicle or other damaged properties following an accident. Opting for this policy can save you from the financial strain of covering these damages out of pocket.
If you cause an accident, the victim can sue you for damages or injuries, forcing you to take on expenses like attorney fees, court costs, and settlements. Non-owned coverage may cover legal expenses, depending on your policy or the provider.
Finding and Choosing a Non-Owner Car Insurance Policy
Non-owner auto insurance is a standard coverage offered by most major providers. To secure the best policy that suits your specific requirements and financial considerations, you should shop around and compare quotes from various insurers:
1.Start with Research
Finding a policy that suits your interests and budget involves comprehensive research. Fortunately, you can do this online and find dozens of reputable insurance providers with a quick search. You can also use BindRight's state-of-the-art tool to fast-track your journey to purchasing a policy from a local provider.
Once you've compiled a list of potential insurers, reach out to each of them to request quotes. The accuracy of these quotes relies on your ability to provide precise information regarding your driving patterns and history. By doing so, you can ensure the quotes you receive are closely aligned with your specific circumstances.
Ideally, you don't want to opt for the cheapest coverage you find. While affordability is important, you shouldn't base your decision solely on price. Instead, carefully examine the extent of coverage provided by each policy.
4.Assess Provider Reputation
The last thing you want is to opt for a bad insurance company. So, research customer reviews and testimonials to gauge the insurer's performance in customer service, claims processing, and other aspects. A reliable, reputable insurer is likelier to provide a smooth and efficient experience when addressing your insurance needs.
5.Evaluate Deductibles and Premiums
When choosing a provider, compare deductibles and premiums. Understanding these costs is crucial for financial management. For instance, deductibles represent the amount you'll cover out of pocket in the event of an accident. Similarly, premiums are the amount you pay monthly for coverage. Make sure both these costs fit within your budget.
Potential Drawbacks of Non-Owned Auto Insurance
Although non-owned auto insurance is an excellent choice for drivers operating vehicles they don't own, it's not without a few drawbacks, including:
Opting for non-owner auto insurance provides policyholders with liability coverage only. Hence, it won't cover any damages sustained by the vehicle you're driving. So, consider this drawback, especially if you drive high-vale cars or vehicles without collision coverage.
2.Not a Substitute for Rental Car Insurance
If you operate rental vehicles, you should know that non-owned auto insurance doesn't protect the vehicle. Hence, you'll still need to purchase rental car insurance separately, depending on the company you rent from.
Non-owner auto insurance isn't available in every state. Moreover, each state has its requirements and options. So, check with local companies to ensure you understand the specific regulations that apply to your case.
Non-owner auto insurance is a smar solution for individuals looking to operate vehicles they don't own legally and safely. If you rent or borrow vehicles, this specialized coverage can offer essential liability protection, potentially saving you from covering damages out of pocket.
However, you must understand its coverage limitations and ensure the policy you choose suits your particular driving habits. So, take your time and do your due diligence before choosing a provider.Find Cheap Auto Insurance