If you often rent cars, non-owner vehicle insurance coverage might save you money.
If you don’t own a car but often borrow or rent one, non-owner automobile insurance may save you money.
Non-owner automobile insurance may be less expensive than paying for liability insurance via a car rental company. When the time comes to purchase your first car, this type of coverage may qualify you for a continuous coverage discount on a basic vehicle insurance policy.
Select explains how non-owner vehicle insurance works and why it’s a smart idea if you’re thinking about acquiring it.
What is non-owner auto insurance and how does it work?
Non-owner automobile insurance covers licensed drivers who do not own a vehicle. It generally just covers the policyholder’s liability. So, while non-owner insurance does not protect your automobile, it will reimburse you for any damages or injuries you cause to others.
This type of insurance may solely protect the policyholder. If this is the case, your spouse or partner will need their insurance. This policy is also known as supplemental insurance, which means that it covers expenses that are not covered by the car owner’s primary auto insurance. Furthermore, with non-owner vehicle insurance, there is no deductible to meet before coverage begins.
You should shop around for the best deal, just like you would with any other sort of insurance. Non-owner insurance isn’t offered in every state where an insurer does business, but many of the larger brands, including Geico, Nationwide, and The General, do. Nationwide is available in 46 states and Washington, D.C., giving it an ideal place to start when comparing policies.
What does non-owner car insurance cover?
If you cause injuries or damage while driving a loaned or leased car, non-owner auto insurance will cover you. It covers the following expenses:
Replacement or restoration of property
Medical bills for injuries you caused
You will be paid for your legal fees if you are sued as a consequence of a covered accident.
Depending on your current coverage and where you live, a non-owner car policy may give additional coverage. Some policies cover medical expenses and may also include underinsured motorist coverage (which pays when another driver is at fault but does not have enough liability coverage to cover all of the costs).
What does non-owner vehicle insurance exclude?
Non-owner automobile insurance frequently provides just liability coverage, which excludes:
Damage to your vehicle: This may be covered by the vehicle’s insurance or the insurance of another driver if they are at fault.
Personal property: Any damage or theft to personal things in a car you’re driving is not covered, although renters or homeowners insurance may apply.
Personal non-owner car insurance does not cover business-related driving, but non-owner automobile insurance is available for businesses.
When is non-owner automobile insurance necessary?
If you do not own a car, you do not need non-owner automobile insurance. There are situations, though, when it can save you money.
Non-owners auto insurance may help you qualify for a continuous coverage discount if you plan to buy a car soon or are in the market for a new vehicle. Many car insurance companies provide discounts if you have had coverage for a certain amount of time, generally six months or more. However, you should do the arithmetic to see if the savings are substantial enough to justify paying for non-owner vehicle insurance.
This type of coverage may be useful for someone who often rents cars or uses car-sharing services like Zipcar or Turo. Having a non-owner vehicle insurance policy allows you to avoid paying for the rental company’s liability coverage, which may easily cost $10-$15 per day on top of all other rental charges. However, perform the math again to confirm that the savings outweigh the expenditures.
FAQs
Can you get insurance if you don’t own a car?
The majority of car insurance firms will sell you non-owner car insurance. This type of insurance often just covers liability.
Who should get non-owner vehicle insurance?
If you often rent or borrow cars and do not own one, non-owner vehicle insurance makes sense. You merely need to ensure that the prices are lower than what you’d pay for liability insurance from a rental company.
Is non-owner vehicle insurance applicable to car rentals?
A non-owner auto insurance coverage does not cover comprehensive or accident damage to a rental vehicle. However, while driving a rental car, it offers liability coverage and covers damages or injuries caused to others while driving.