Non-Owner or Non-Owned Car insurance includes a bunch of types of coverage that provide Liability insurance for cars used by you (or for your business) that aren’t listed on your policy.
Cars that are owned by you (or your business) or used on a regular basis should be put on your personal or commercial car policy to be covered for liability. Sometimes, there might be situations when you or your company uses cars, trucks, or vans not listed on your policy. In a situation like this, Non-Owner Car insurance can provide Liability protection.
What Do You Need To Know About Non-Owner Coverage?
Even if you don’t own a vehicle, you might have to get your own car insurance coverage. A special type of policy called non-owner auto insurance should work for you.
Non-owner auto insurance offers liability coverage when you get a rental car or you’re taking out a friend’s car. Liability insurance pays for property damage and serious injuries that you cause to other drivers and their passengers.
What Does Non-Owner Insurance Actually Cover?
A non-owner policy helps you protect yourself against any serious financial cost incurred if you are judged to be at fault in an accident when you’re driving a car not owned by you.
We’ve already covered the definition before, but we wanted to make it crystal clear. Sometimes, it’s easier to get the definition in a nutshell.
Do you really need it? We’ll study that more below. You can decide for yourself whether or not you really need it. Most people probably don’t, but you may be a special exception. Let’s take a look.
Why Should You Get Non-Owner Coverage?
A non-owner car insurance policy might be a good idea for you if:
- You’ve gotten a DUI or other serious violation and you’ve had to get SR-22 insurance to get your driver’s license reinstated. This type of insurance – technically a certification – will prove you have car insurance. A non-owner policy will work just fine if you don’t own a car.
- You rent cars all the time. A non-owner policy might be less expensive than paying for the rental car company’s required liability insurance every single time.
- You borrow other peoples’ cars frequently. Most of the time, if you caused an accident while driving a buddy’s car, his or her insurance would pay for it. But, if the costs overrun your friend’s liability coverage, you could be on the hook for the remainder of the cost. Non-owner car insurance would supplement your friend’s auto insurance coverage in a case like that.
A non-owner policy can help you line up continuous car insurance coverage. Having periods when you’re not insured – even if you’re in between cars – could make you look bad to some insurers. You might have higher rates down the road (pun intended) when you purchase a car and apply for an insurance policy.
Not everyone needs non-owner car insurance. In fact, most people don’t need it. But, if you want to be especially careful, or if you fall into one of the categories above, you might want to get it. Most people don’t want the extra expense if they don’t see themselves driving other peoples’ cars a lot of the time. There is no point in over-insuring (and overpaying) if you don’t need to. It’d be wiser to just stick to your own car insurance policy (and car) if you’re like most people.
Types Of Non-Owner Car Insurance
There are many ways to get protection with Non-Owners Car insurance.
Employer’s Non-Owner Coverage
This type of coverage offers liability protection when an employee sometimes has to drive his or her own car for a business reason. This, of course, assumes that the car is not owned, registered, or in any way contracted in your own name or on your behalf.
Hired Car Coverage
Hired Car coverage offers liability protection when you’re using a hired, leased, rented, or borrowed car.
Any Car Coverage
Any Car coverage protects car that you buy during your policy period with the same liability coverage you have for the cars already listed on your policy. Any Car coverage applies to both hired and non-owned cars.
Who Needs Non-Owned Car Insurance?
If you or the people that work for you will ever drive cars for your business that are not listed on your commercial car policy, you should carry some Non-Owned Car insurance coverage.
Some coverage is probably already offered by your commercial car policy. For instance, if your car has a breakdown, then a temporary car might be covered automatically.
Again, most people just don’t need non-owner coverage. But, if you think you do, ask your insurance provider or compare quotes online. A lot of your decision will be based on your unique situation. As a general rule, most ordinary people wouldn’t need this particular type of coverage.