You can buy auto insurance coverage for another person’s vehicle if you wish. You need to have the owner’s permission to do so, and the owner must benefit from the arrangement.
If a person will be driving someone else’s vehicle for an extended time, he or she may wish to purchase a non-owner auto insurance policy. This insurance provides coverage when a person is operating a borrowed or rented vehicle. The policy can provide third-party liability coverage as well as physical damage protection.
Third Party Liability Auto Insurance
Third party coverage pays out on claims made by the occupants of the other vehicle. Bodily injury liability insurance pays for medical bills and rehabilitation expenses incurred as a result of the accident. It can also compensate accident victims for lost wages if they are unable to work following the event. In some states, bodily injury liability insurance coverage will compensate a person injured in an accident for pain and suffering.
Property damage liability coverage is the other type of third party liability coverage available to auto insurance buyers. This part of an auto insurance policy pays to repair the other driver’s vehicle. It also pays for the cost to repair or replace public property damaged or destroyed in the accident. In this instance, public property refers to items such as fences, sheds, guard rails, sign posts, light stands and mail boxes.
Physical Damage Coverage
Physical damage auto insurance coverage is made up of two parts. Collision auto insurance coverage pays for repairs to the vehicle caused by striking another object or in a rollover accident.
Comprehensive auto insurance pays out when the damage to the vehicle is caused by an event other than a collision. It covers losses due to striking an animal, falling objects, damage caused by severe weather, fire, theft and acts of vandalism.
Temporary Auto Insurance Coverage
Some companies will sell policies for a shorter time than the standard auto insurance term of six or 12 months. This type of short-term, or temporary, coverage can be more expensive than a standard policy, though, and a driver who is interested in it should make a point of shopping around before choosing an auto insurance provider.
Before starting to look for auto insurance coverage, a driver should make a point of considering the type and level of protection he or she needs. Liability coverage is required in most states, and the insurance company is required to provide a quote for at least the minimum level of protection required under state law.
Adding physical damage coverage the policy will drive the price up, but it also provides an extra level of protection if a borrowed or rented vehicle is involved in an accident. The owner’s auto insurance policy would pay out on the damages caused first, but the company would likely then approach the person driving the vehicle to compensate it for the amount of money paid out. Having non-owner coverage in place will help to protect the driver’s assets if that instance.