What Is Non-Owner Auto Insurance Coverage?

There are many situations where a person needs to purchase car insurance for their vehicle. What if you do not own a vehicle? You may still be a driver, but you don’t own a car at this time. Do you need auto insurance? The answer here is yes. This is what non-owner auto insurance is, and it can be one of the best investments you make to protect yourself while you are behind the wheel. There are a few key things you should know about this coverage.

How Does Non-Owner Auto Insurance Work?

Also known as non-driver auto insurance, this type of policy provides you with property damage and bodily injury liability coverage.

Without a vehicle, there is no protection for the car you are in on your own. Keep in mind that when you drive a vehicle, the owner’s car insurance continues to cover that car even if a non-owner is behind the wheel. It can be important to verify the insurance coverage of any person whose car you borrow.

What Can Non-Owner Insurance Do for You?

Let’s say you borrow your friend’s car for the day. You are in a car accident. The vehicle you are driving collides into another car, causing damage. In this situation, the vehicle owner’s insurance is the first applicable policy. That means that the vehicle owner’s insurance covers the damage to the other party’s car.

However, if that insurance is not enough, your non-owner policy then covers the rest of the loss. In a situation like this, there may be thousands of dollars worth of loss to the vehicle. If the owner’s insurance does not cover the loss in total, this policy can help to cover the rest.

Other Coverage May Be Available

You may want to look for a more comprehensive plan. Some insurance companies can also provide you with uninsured and underinsured motorist coverage. This type of policy can help to cover any losses you suffer if the other driver, who is at fault, is responsible for them and does not have coverage. Additionally, you can also purchase medical payments insurance to help cover medical losses.

Do You Need This Insurance?

If you drive another person’s vehicle frequently, it is a good idea to have non-owner auto insurance. If you do not drive often, you may be less at risk. Yet, if you do cause an accident, you could be liable for the losses.