Not everybody who buys auto insurance even owns a car these days. If you are going to borrow or rent a car more than a few times a year, it is important to consider a limited insurance policy called a “non-owner insurance policy”. There are a number of restrictions to these policies, and you should be aware of them before making any decision.
What Non-owners Insurance Policies Will Cover
You don’t have to be a car owner to buy this type of policy- you only need to be a licensed driver who wants to protect their assets and fulfill legal obligations. Even if you borrow a friend’s car, you should still make sure that you are covered. These kinds of policies will cover:
- Liability – This is the minimum required insurance in most states, covering damage to another person’s vehicle or property in the event of an accident.
- Uninsured/under insured coverage – This covers a person that does not have any insurance at all or may have too little insurance coverage to pay for losses in an accident or other covered type of event. (very limited with this type of policy)
- Personal injury protection – This covers the cost of injury during an accident including hospitalization and other costs.
What a Non-Owners Insurance Policy Will Not Cover
Because it is one of the most limited types of insurance policies, there are a number of restrictions for what will or will not be covered. Things that won’t be covered include:
- Collision insurance
- Comprehensive insurance
- Towing assistance
- Car rental assistance
Should You Just Get Insurance from the Rental Counter?
If you are going to rent a car, you will be asked if you want to buy the additional car rental insurance. Before you say yes, consider the costs, the coverage and the alternatives.
- The rental insurance from the rental place is much more expensive than a non-owners insurance policy.
- If you are going to only rent a car once a year, then rental kiosk insurance is acceptable.
- If you know that you will be renting a car more than once or twice a year, the cost of the non-owners insurance policy might be more reasonable.
How the Non-Owners Insurance Policy Works
When you buy a non-owners insurance policy, it will cover the cost of insurance no matter what vehicle you are driving. You can borrow from a friend or rent a car and be covered. If there is an accident, any other insurance would cover the cost of repairs, injuries and other expenses first and the non-owners policy would kick in after that insurance has reached its limits.
Shopping for the Best Price
Not all insurance companies carry non-owners insurance. In addition, it may not be available in all states or in all areas. Compare the price of insurance policies before you make a decision. Because it is such a limited insurance policy, there are typically very few discounts that can be added to the policy that would bring its costs down.
