If you don’t have your own car, you don’t have to worry about getting car insurance, or do you? Even if you don’t own a car, if you drive regularly, investing in a non-owner car insurance policy is both a responsible and sensible thing to do. Here at CoverHound, we help you compare competitive car insurance quotes to find an insurance policy that works for you and your budget.
Why Should I Get a Non-Owner Car Insurance Plan?
Let’s say you are bunking with a friend for the time being until you’re able to find your own place. Even though they have their own working car, they prefer riding their bicycle to work. Knowing your commute is two hours to work using public transportation, your friend offers you their car, cutting your commute in half. You happily take them up on their offer, and use their car for the first week without a hitch.
Then one Friday as you’re driving home from work, traffic slows down to a crawl because of an accident just up ahead. While you look at the crashed cars pulled onto the side of the road, grateful you’re not in their shoes, you rear-end the person in front of you. Your buddy’s car insurance should cover the damages, but if the monetary damages exceeds the liability coverage your friend has, you both will be expected to pay the remaining difference. And if you still can’t cover it, the other driver could sue you, taking virtually everything you own.
The Law Dictionary reports that between four and five percent of injury cases go to trial, with the remaining 95 percent settled at pretrial. This means that even if your case does not go to court, you’ll still be paying a settlement, and most likely a hefty one. A non-owner car insurance policy would protect you and your friend from being sued.
What a Non-Owner Car Insurance Plan Covers
The non-owner car insurance policy provides its carriers with property damage and bodily injury liability coverage. Depending on the insurance provider, some companies also provide their clients with uninsured/underinsured motorist coverage and medical payment coverage. Because there is no vehicle assigned to this insurance policy, non-owner Insurance coverage does not include collision, comprehensive or rental and towing reimbursement. And if you’re thinking you can add these coverage plans by getting another policy, know that you unfortunately cannot.
Another important thing to know about having a non-owner insurance policy is that if you do crash your friend’s car, it will be their insurance (the primary insurance) that pays for the monetary damages first. If there are any exceeding costs, your insurance plan will cover the rest, as your insurance plans is the secondary insurance. Even though you were the one driving the vehicle at the time of the crash, it is their car that is insured, and as such it is their responsibility to pay for damages sustained in an accident.
A huge bonus to having a non-owner insurance policy is its low cost. Allow CoverHound to help you find the most affordable and protective plan out there today.