I Don’t Have a Car… but I Want Car Insurance!

I Don’t Have a Car… but I Want Car Insurance!

For urban dwellers and young driver, car ownership may be low, but the need to drive for trips, business, and vacations necessitates the use of another person’s/company’s vehicle. You may not realize it, but if you drive another person’s car or use a rental vehicle regularly, you may be opening yourself to risk should an accident occur and your found to be at-fault. How do you protect yourself?

The answer is non-owner car insurance. In this article, we’ll take a look at what this type of insurance is and reasons why you may need it to protect yourself from potential losses.

Why Do I Need Non-owner Car Insurance?

The main reason why you’d want to purchase non-owner car insurance is to insulate yourself from a potentially large financial burden if you’re involved in an accident and determined to be at-fault. This is, of course, involving a vehicle you don’t own, but use regularly. For instance, if you live in New York City and commute using the trains and subway, taking a rental car for a vacation leaves you exposed.

The advantage of this policy is that it can offer more coverage and can be cheaper than the liability policies offered by the rental car company.

Some situations where having non-owner car insurance can be valuable include:

• You rent cars often: Do you travel often and rent vehicles? By doing the math, you may be overpaying. For example, if you take out a $10/day liability coverage from the rental company, but rent for more than 50 days a year, your coverage is typically less than the $500+ you may be paying. (However, you will still need to purchase the other coverage options sold by the company to be fully covered).

• Car-sharing services: Typically, companies like ZipCar provide their own built-in insurance coverage from the cost of your monthly fees, but if you injure someone in an accident and are determined to be at-fault, you leave yourself vulnerable to a lawsuit against both you and the car-sharing service. To protect your assets, having coverage can provide protection against potentially costly legal fees and judgments.

• Borrowing vehicles:If you habitually borrow from your family and friends, you are usually covered by being a “permissive driver”  under the policyholder’s insurance. However, if you have borrowed a vehicle from a person you aren’t familiar with (ie. a work colleague), you may not know if their insurance is adequate (or even if there is any coverage to begin with). If you’re found to be at-fault and the other driver has injuries that exceed the liability coverage of the vehicle you borrowed, you may be stuck paying the expenses.

• Problematic driving record: Some states, like Virginia, require drivers with a checkered past (DUI, DWI, driving on a suspended license, etc.) to have a non-owner car insurance policy.

What’s the Cost of Nonowner Car Insurance?

Typically, non-owner car insurance does not have a deductible, which may be a deciding factor for purchasing a policy. The premiums of a policy also can be low if your driving record doesn’t have too many violations and if you keep your driving to a minimum. Some companies only charge $250 annually, whereas others charge the same for a six-month policy period.

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To determine if purchasing a non-owners insurance policy is best for you and your family, it is recommended that you speak to an insurance advisor. The advisors at RiskBlock can help find a policy that suits your lifestyle and needs while remaining affordable.