What is Non-owner Auto Insurance Liability Coverage?

Non-owner auto insurance liability coverage is available to licensed drivers who don’t own a vehicle but who may wish to borrow or rent one. It includes bodily injury and property damage coverage.

Bodily injury liability insurance pays for medical bills and other damages suffered by the driver or passengers traveling in the other vehicle when an accident occurs. It also pays for funeral expenses in the event of a fatal accident. It also pays for legal fees required to defend an injured person’s claim for damages.

Property damage liability coverage covers repairs to the other driver’s vehicle. It also looks after repairing or replacing public property damaged or destroyed in the accident, including sign posts, light stands, mail boxes, guard rails, fences and buildings.

When a driver borrows someone else’s car, the owner’s car insurance policy will likely cover any damages caused in an accident since the insurance rests with the vehicle, not the driver. A non-owner should still consider buying liability coverage, though: if the owner’s policy limit is not high enough to cover the damages caused in the accident, the borrower will be responsible for paying the difference.

In a situation where a person is renting a vehicle, the agency will be able to offer liability protection. The level of protection offered under the plan may be limited, and the renter should review the coverage carefully before agreeing to it. If the non-owner is planning to rent a car for more than a couple of weeks each year, it may be more economical to buy a separate non-owner auto insurance liability policy.


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