Top Reasons You Need Non-Owners Insurance Coverage
Once you realize just how expensive it can be to own a car, then you can better understand why people who don’t have cars aren’t really complaining. They don’t have to deal with car payments, fuel costs, expenses for accessories, and maintenance costs. They may not even have to deal with expensive insurance coverage, but this isn’t really accurate. They may still purchase non-owners insurance coverage.
If you don’t own a car, this kind of coverage may actually make sense to you. Getting non-owners insurance makes sense if any of the following situations apply to you:
- You often borrow your neighbor/ sibling/ parent’s car. Now if you do get involved in an at-fault accident, the usual scenario is that your neighbor’s insurance will pay for your medical expenses. But these expenses may be greater than the limits of their policy. With non-owners insurance, you can get extra coverage for the remainder of the medical bills.
- This policy offers you coverage when you don’t borrow the same cars frequently. Usually, when you tend to borrow a neighbor’s car or your parents’ car a lot, it makes more sense to have you listed as a driver on their insurance policies. But this non-owners policy makes more sense when you tend to borrow different cars from different friends. This is especially helpful when you’re the “designated driver” at parties, and you tend to drive home the car of your most inebriated buddy.
- You rent a car often. When you do rent a car, you’re also normally required to buy physical damage and liability coverage from the rental company. This can be rather expensive. But you can reduce the expense with your non-owners policy because you won’t have to get the liability part from the rental company insurance.
- Insurance may be a requirement to get your driver’s license. This all depends on the requirements of your particular state, but some states require some sort of insurance before you can receive or reinstate your driver’s license. This type of insurance can satisfy this requirement, and it’s great because this type of insurance is generally much cheaper than a regular car-owner’s insurance.
- You don’t want a gap in your insurance coverage. Let’s say you sold your car and you’re saving up for a new one in a year or so. This means that for the meantime you don’t have a car, and therefore you’re not paying for car insurance. This leaves a gap in your insurance coverage, and that’s problematic. A gap often leads to higher rates when you do get insurance coverage again.
It doesn’t make sense to keep paying expensive car insurance just to avoid having gaps in your coverage. It makes better sense to switch to a non-owner’s policy, as you avoid having a gap and you pay a lot less for insurance. Once you do buy yourself a new car, you may then be eligible for discounts once you switch to your regular car insurance.
Of course, there are some situations when this type of insurance doesn’t really make sense at all. If you own a car, obviously a non-owners policy won’t do. If you’re a frequent borrower of a particular car, it’s better if you’re listed as a driver on the car owner’s insurance policy. If you’re using a vehicle for business, then perhaps you should check out a commercial non-owner’s policy instead.
But for most non-owners who tend to drive different cars every now and then, having non-owners insurance coverage makes perfect sense. So do the right thing and get a non-owners policy just to be on the safe side.