If you are planning to rent or borrow a vehicle, you will want to find non-owner’s car insurance coverage. This type of insurance plan provides liability protection in case the driver is involved in an at fault accident and protects him or her from having to pay for damages personally.
Non-owner’s car insurance pays out on claims for personal injuries and property damage made by the other driver involved in an accident, as well as claims made by his or her passengers.It does not provide collision or comprehensive coverage for the vehicle. This type of insurance also does not pay for towing fees or rental of replacement vehicle while the car is being repaired.
When You May Need Non-owner’s Car Insurance
A person who grows a friend or family member’s vehicle occasionally and only for a short time may not need to buy non-owner’s car insurance coverage. In that situation, the owner’s auto insurance coverage would cover damages if an accident occurs. If the owner has a policy with a low limit for liability coverage, having non-owner’s coverage in place can protect the borrower if he or she is sued.
Drivers who have had their license suspended or revoked and are required to file an SR-22 may need to buy non-owner’s coverage. The SR-22 is a document filed with the state Department of Motor Vehicles confirming that the person has liability auto insurance coverage in place. This rule remains in place even if the affected driver does not own a vehicle.
Someone who rents a car on a regular basis may also want to consider buying non-owner’s auto insurance coverage. Insurance coverage sold through car-rental agencies can be quite expensive and frequent renters may find it more economical to buy their own policy instead of adding liability coverage onto the cost of each rental.
Rental Car Insurance Coverage
Since non-owner’s car insurance does not include physical damage coverage, a person who is renting a car should consider adding a collision damage waiver to the contract. It will protect the renter from being responsible for paying for damage to the vehicle or reimbursing the rental agency if the car is stolen.
The driver should review the insurance coverage offered by the rental agency carefully to make sure that he or she understands exactly what protection is being offered, as well as amount of the deductible and the cost of coverage.
Find Non-owner’s Car Insurance
A driver who is looking for non-owner’s car insurance can go online to request quotes from different companies offering this type of protection. The actual cost of coverage will depend on the policy limit being requested, how often the driver plans to use a car and his or her driving history.
Rates charged by companies offering this type of protection can vary, and spending some time getting quotes from different providers can help a driver find the lowest price on non-owner’s car insurance coverage.