Advantages of Buying Non Owner Auto Insurance Coverage

If you frequently drive cars that do not belong to you, i.e. a borrowed car or a rental car, then non-owners auto insurance can ensure that you remain protected in case of an accident. There are two important things to consider about non-owners insurance: it covers the driver and not the vehicle and claims on the policy will be paid off only after all other policies have paid off. For example, if you borrow your brother's car and you get in an accident, his policy will pay up to its liability limits and only then will non-owners insurance pay off the remainder of the damage. Note that the main purpose of the policy is to enable the driver to meet his state's minimum insurance requirements so that he won't be penalized if he is caught without proof of coverage. You also cannot add other types of coverage such as comprehensive or collision as well as other features to these plans like towing. And non-owner's insurance covers only cars that have been borrowed - not office cars or cars that you drive as part of your regular workplace duties. In addition, the policy may also exclude coverage if the car you are driving is deemed as having been used for a work-related situation, such as if the driver is bringing the car to an auction lot or a valet is parking the car on behalf of a guest.

What are the main types of coverage you can find in a non-owner's auto insurance policy? The main ones are bodily injury liability and property damage liability - meaning that it will pay for damages to any person you might have injured as well as any property damage. Depending on the provider offering the policy non-owner's insurance may also provide personal injury protection as well as uninsured/underinsured motorist coverage in case the other driver has no insurance or has insufficient coverage. These last two coverage features ensure that your medical and other needs will be met in case of an accident.

There are a number of advantages to buying non-owners insurance. The main one is that it is cheap, costing only a few hundred dollars a year. Another is that it is a low-cost alternative to buying auto insurance as an add-on to your rental fee; rental car policies can add as much as 30% to 40% to the daily fee. And of course, you gain peace of mind knowing that you will be protected from liability as well as the possibility of being penalized if you are stopped by a law enforcement official and asked to provide proof of insurance.

Non-owner's insurance can also be a good supplement to a primary insurance policy. For example, if you borrow a friend's car and you think that his policy does not provide sufficient coverage in case of an accident, you can increase coverage by buying a non-owner's policy, since this will pay off once the primary policy has been tapped. This will also help protect your friend's financial interests as they will have to pay for any damages not covered by their policy.

Another important consideration when buying a non-owners policy is the minimum car insurance requirements imposed by your home state, which is usually summarized in a formula such as 25/50/25 or $25,000 bodily liability per person, $50,000 bodily liability per accident and $25,000 property damage liability. Aside from buying enough coverage to meet these requirements, you should consider buying extra coverage if you can afford it, since these minimum levels are usually not enough to meet all the damages resulting from an accident.