Coverage is important for any driver. It's illegal to drive your car without it. But what if you borrowed your friend's car to get to work this week, or caused an accident while driving your sister's car back from an errand and you aren't on her insurance? Is there any type of coverage that works for vehicle non-owners? According to DVM.org, a non-government website, there is and it's called non-owner liability coverage.
The little known coverage option
Non-owner car insurance isn't advertised as heavily as other more common policies, to the point that most car owner's don't know it exists.
"Coverage uses vary depending on your needs."
Non-owner liability coverage, also referred to as hired automobile coverage, is for drivers operating a vehicle they do not own. According to NerdWallet, this type of liability coverage protects you in case of an accident where in you're considered at fault. Coverage uses vary depending on your needs.
Non-owner insurance isn't for everyone. Here are some points to consider if you're thinking about getting non-owner coverage or wondering if it's the best protection you never knew existed.
Do I need non-owner coverage?
Non-owner coverage can help you when using a friend's or family member's car for an extended time. If you don't own the vehicle and aren't included in the coverage for it, you need non-owner liability coverage. A quick errand every now and again doesn't put you at high risk, and buying extra coverage would be an unwise choice.
For a DUI or similar conviction, get non-owner insurance, NerdWallet reported. The liability coverage can help with the conditions for your SR-22 or FR-44 filing.
Non-owner insurance is useful if you rent cars on a regular basis. Rental care insurance becomes costly quick, and non-owner insurance may be a cheaper alternative to paying for the rental car company's liability coverage again and again. Non-owner insurance does not cover damage to the rental car, but it does cover you for the damage to other vehicles if you are found to be at fault.
If you use a car-sharing service like ZipCar or one of its competitors, non-owner insurance works well as a supplement to the insurance already offered. This works for you in the case that in an accident a victim sues you, as well as the sharing company. Non-owner insurance does not typically include coverage for injuries you suffer in an accident.
Non-owner coverage is great if you regularly rent a vehicle or car-share.
Is non-owner coverage more affordable?
Non-owner car insurance typically amounts to less than what you spend for standard liability insurance. On average there is no deductible, and the price can vary depending on the amount of coverage you want, how often you plan on driving and your driving history.
You qualify for non-owner coverage if you don't own a vehicle, don't have access to household vehicles, or don't have an ignition interlock device requirement.
For more information on non-owner car insurance, how much it costs and where you can find the best rates and compare quotes, use CoverHound.