Non-Owner Auto Insurance Policy

Not many people know about this kind of policy, but it is possible to purchase an auto insurance policy without owning a car, this kind of policy will only cover liability, which means that it does not include medical expenses, although there are some policies that include this benefit according to the insurance company statements.

When do you need a non-owner policy?

There times when this kind of policy is necessary for example, if you rent a car it is important to have a policy that can cover the car’s damages in case something happens with it, another time is if you are in charge of a car that is not yours, like a friend’s or a relatives’, so you can be sure that the car is going to be saved in case of an accident.

Benefits of having a non-owner policy

Liability protection

As we said before this policy will protect you in case you are driving a rent car or another car you are in charge but it does not belong to you. For example if you are driven a friend’s car and your friend own a liability insurance policy, but you caused a severe damage and the cost is too high for his/her policy, the non-owner auto insurance policy can take care of the extra expenses.

Save money

If you are constantly renting a car, normally renting companies charge a lot of money for their auto insurance policies, therefore, if you already have a non-owner auto insurance policy, you would save you a lot of money, because you would have liability protection, however, you would have to buy a collision damage policy to cover medical expenses, but it would still be cheaper, that no having any policy from the start.

Driver risk status

If you have a non-owner auto insurance policy, by the time you by a car of your own, the insurance company will recognize your funding responsibility as a driver with no car, which means that would only have to pay a low fee for getting a more suitable auto insurance policy.