When you drive another person’s car, the car owner’s insurance policy should cover you, assuming you use the car with the permission of the owner. However, if you fall into an accident and the damage exceeds the amount specified in the owner’s civil liability, you can be suspended for a significant amount of money. Can you have car insurance without owning a car?
Yes – you can take out car insurance if you don’t have a car. Insurance for a non-owner will provide civil liability insurance, as well as any additional insurance required by the state, but does not cover damage to the vehicle you are driving. This is a problem when renting a car because the main problem of the rental company is damage to the vehicle during renting. An alternative to purchasing rental insurance through a rental agency would be to get insurance from your credit card company. This can make more financial sense if you rent vehicles regularly.
How exactly does this insurance work?
Non-owner car insurance provides liability insurance when you don’t have a car and you drive a car that is not yours. Liability insurance covers injuries and property damage caused to other people in a car accident. However, it does not cover damage that you have borrowed or borrowed, nor does it cover any injury if you cause an accident.
Note: if you borrow a car from a relative or someone living with you, non-owner car insurance is not the right choice – you should be on the owner’s policy. Depending on the insurer and where you live, this may be required.
How much does insurance for a non-owner car cost?
The costs of non-owner auto insurance vary, but usually insurance is cheaper than a vehicle insurance policy. Insurers see people who do not own cars as less risky because they do not have regular access to the car. Factors affecting costs include: amount of liability insurance, your driving history, your geographical location.
Depending on your history, you may need high-risk car insurance. In this case, your non-owner policy will likely cost you more than a person with a clean account.
What does the non-owner auto insurance policy cover?
Car insurance policies for non-owners generally cover liability (only personal injury and property damage). Liability insurance covers injuries or property damage for which you are legally responsible as a result of a car accident. It does not include a rented or borrowed vehicle if it is damaged or stolen during use.
Insurance for non-owners does not include the following types of insurance: comprehensive, collision, refund of towing costs, rent refund