Non Owners Car Insurance – A Quick Overview

In most states in America, having car insurance on the vehicle you own and drive everyday is the law. This is required to protect you, and the other drivers on the road in the event of an accident. What if you don’t own the vehicle you are driving though, and only are renting or borrowing it for a period of time? In this case, you still want to protect yourself and your passengers in case of an accident, but can you buy insurance on a vehicle you don’t own? The answer to that question is a definitive YES! The policy for this type of situation is referred to as Non Owners Car Insurance, and according to GEICO, you can also obtain an “umbrella policy” to limit liability in many different situations, including car rentals.

Understanding The Coverage

I don’t think it’s a surprise to anybody to know that owning a car is getting very expensive these days. The price tags on the new vehicles are high, and with that comes expensive maintenance and repair. The cost of gas is also on the rise, so many people have resorted to leaving their cars behind and taking advantage of some other form of transportation.

According to the Victoria Transport Policy Institute, a medium sedan costs about $0.10 per mile to fuel. Many people will simply rent or borrow a car when they absolutely need to, and that’s where Non Owners Car Insurance comes into play. This type of insurance protects the driver in the event of an accident.

Most Non Owners Policies Include

Personal Injury Protection (PIP) – Covers possible medical expenses, and in some cases lost wages due to loss of work.
Liability – If someone else is hurt in the accident, this protects you financially from any damages caused by the accident.
Medical payments coverage
Uninsured/underinsured motorist protection – This will protect you in the event that the other motorist does not have insurance coverage.

Because this type of insurance is considered to be the most basic form of insurance protection, it often will not cover the following.

Towing Service Reimbursement
Rental Car Reimbursement
Comprehensive or Collision damage

Is ItWorth It?

Many people will often wonder why they would go out of their way to purchase a policy for renting or borrowing a vehicle, when the rental car companies offer this coverage when you rent a car. The thing about rental car insurance provided by the rental company, is the fact that that is where they make their money. The rates are so inflated, that just purchasing the insurance a couple times, will be more expensive than a Non Owners Car Insurance policy premium for 6 months.

It is important to understand that this type of insurance coverage will only cover what the original or primary insurance policy does not cover. In the case that you borrow a car from a friend, and you get in an accident. The owners insurance policy will cover what is outlined in their agreement, and whatever is not covered on your end, will be taken care of by your Non Owners Car Insurance policy.

Whether you decide to take advantage of this insurance option or not, remember to always compare multiple quotes from different providers. Only then can you really get a good idea of what the market is like, and can assure you are getting the best rates available.

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