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Understanding Non-Owner Car Insurance

Even if you don’t own a car, you should still have auto coverage.

Today, many drivers do not have their own cars and instead rely on borrowing or renting vehicles to get around. For these motorists, there is a special type of insurance called non-owner car insurance. But what does this policy cover and who exactly needs it? Here’s what you need to know about non-owner auto insurance.

What It Covers

Non-owner car insurance provides liability coverage in the event that the policyholder causes injuries or losses during a vehicular accident. Because the policyholder does not own the car that he/she is driving, non-owner policies do not offer coverage for the vehicle’s damages. These damages are the responsibility of the car’s actual owner.

Why You Need This Coverage

Non-owner car insurance is a specialty policy that only select drivers need to carry. For instance, this insurance is most applicable to drivers who borrow their friends’ and family members’ cars, rent cars, or rely on car-sharing services such as Zipcar.

  • If you borrow: If you rely on your friends’ and family members’ cars, their insurance will cover you in the event that you get into an accident. However, if the cost of the claim exceeds their coverage limits, your non-owner auto insurance will supplement their coverage to ensure that they do not end up paying out-of-pocket for the remaining cost of the claim.
  • If you rent: While car rental companies offer insurance to renters, having non-owner car insurance is a much easier and more affordable coverage option. However, keep in mind that non-owner car insurance only covers the liability portion of an accident. You may have to purchase insurance for physical damages through the car company.
  • If you use car-sharing services: When you use a car-sharing service, the company offers you some coverage. However, this insurance is very limited and, if you got into an accident, it would likely not be enough to cover the claim entirely. Non-owner car insurance would supplement the company-offered coverage to ensure that you don’t have to pay the rest of the claim all on your own.

This is what you need to know about non-owner car insurance. Interested in securing the right auto insurance to fit your unique needs? If so, contact the experts at Scautub Agency in Scotia, New York. We are ready to get you the coverage that you need today.

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