What Is Non-Owner Car Insurance?

You already know that when you buy a car, you need car insurance; but what if you don't own a car? There are actually many reasons to get a non-owner car insurance policy even when you do not own a vehicle. It can protect you from liability if you are driving a car that you do not own. Here is more information about the non-owner car insurance policy.

Liability Coverage

Even if you do not own a vehicle, there are many reasons to have at least liability coverage. If you occasionally borrow a friend's vehicle to run your errands, you are at risk every time you drive. You could get into an accident and be responsible for the entire cost of the vehicle damages and bodily injuries since their policy might not cover you. Even if you don't often borrow other people's cars, there may come a time when you are riding with a relative and they have a medical emergency, and you need to get behind the wheel. In this state of stressful driving, you have an even greater risk of getting into an accident.

Rental Car Coverage

Another reason to get a non-owner car insurance policy is to have insurance for any rental cars you drive. While rental car companies do have their own insurance, it tends to be more expensive. You can get a simple, non-owner car insurance policy and have accidents covered when you are using a rental car. If you don't own a car, you'll probably rent a car more often, making this a good reason to have at least a liability policy.

Low-Risk Status

If you someday buy a vehicle and the car insurance company sees that you have never had car insurance before--even though you have had your license for a while--you become a high-risk driver. Even though you can tell them you never owned a vehicle, this still puts you in the risk category. However, if you get a non-owner car insurance policy now, you will eventually move to the low-risk status; and by the time you get a regular car insurance policy for your vehicle, the rate will not be as high. You may want to talk to different auto insurance companies, like Austin Insurance, to see if you're considered a high-risk driver under their policy rules.

It is also important to find out exactly what non-owner car insurance policies do and do not cover. First of all, they usually cover general liabilities and bodily injury, but not vehicle damage. You will still be responsible for the cost of damage to the vehicle if you are in an accident. They also do not cover borrowed vehicles owned by someone in your household. In that case, you should have a family member add you to their car insurance policy.