Why Do Non-Car Owners Need Insurance?

Taking an insurance policy is a proactive way of mitigating the damages caused in the event the insured risk occurs. As the saying goes, no one wants it to happen….but it pays to be prepared. 

But despite being such an indispensable necessity in our modern lifestyles, there are still many myths and misconceptions about the importance of insurance. Certain things need to be clarified about who should and shouldn’t take certain types of insurance. 

For instance, it’s intuitive to imagine that you do not require motor insurance coverage despite frequently serving as a motorist. Nothing can be further from the truth. 

Those who occasionally drive cars need to be insured even if they’re not necessarily car owners. The most suitable cover for such people is simply known as non-owner car insurance. 

Read on as we highlight non-owner car insurance and why you need it.

What Is Non-owner Car Insurance?

The name gives it all away. A non-owner car insurance cover is an auto insurance package for people who don’t own cars but may occasionally drive someone else’s. 

Non-owner car insurance primarily covers liability for damage or injuries caused to others while driving a car that doesn’t belong to you. Depending on your country or state, the package may include other forms of coverage like medical payments or uninsured motorist coverage.

What Are the Benefits of Non-owner Car Insurance?

The primary benefit of non owners car insurance is that it helps pay for the injuries you may cause to others while driving someone else’s car. As with most motor vehicle insurance policies, the injuries covered by non-owner car insurance typically result from auto accidents. The victims could also be any road user, including pedestrians and motorists. 

For instance, let’s assume you accidentally ram into the bus in front and injure its driver and passengers. Upon establishing that you’re at fault, non-owner car insurance could help pay for the victim’s medical expenses. 

To paint a clearer picture of the importance of non-owner auto insurance, let’s say that you cause an accident while driving your boss’s car. But for some reason, your boss has bodily injury liability limits of $30,000, whereas the medical bills from the injured victims amount to $60,000. Without a non-owners car insurance cover, you’ll have no choice but to cough up the $30,000 balance from your pockets. 

Therefore, if you’re a non-car owner or a car owner, having insurance is always important and necessary, given the legalities involved.  Residents in the mountainous west can compare Wyoming car insurance rates for both car and non-car owner insurance and get the best offers and services accordingly.

The following are other benefits of non-owner car insurance;

It Covers Property Damage

Much like injuries, non-owners car insurance also covers damage to other people’s property. 

These include car repair bills and repair bills resulting from damage to other roadside objects, such as fences and shops.

It Offers Safeguards against Lawsuits

Many auto accidents end up in courts of law. That’s especially true for crashes that result in fatalities. 

Having a lawsuit brought against you for causing accidental deaths can be one of your worst nightmares. And without a proper insurance cover in place, you’re halfway losing the case. This is another sufficient ground for having non-owner car insurance. 

It Entitles You to Additional Coverage

A non-owner car insurance policy may make you eligible for certain medical coverage. This is very important if you’re the injured victim. 

The following are the common types of medical coverage usually offered alongside non-owner car insurance;

Uninsured Motorist Coverage (UM)

An uninsured motorist coverage pays for medical expenses if someone else crashes into you and they do not have liability insurance, or their limit is insufficient. In some states, UM also covers hit-and-run accidents.

Medical Payments (MedPay)

Medical payments cater to your medical expenses as well as that of your passengers. In most arrangements, those with non-owner car insurance are eligible for MedPay despite who or what caused the accident. 

Under What Scenarios Might You Consider Non-owner Car Insurance?

If you rent cars frequently

Frequent car renters are often required to purchase liability insurance. Having non-owner car insurance eliminates the need for liability insurance.

If you use car-sharing services regularly

Car-sharing services like Getaround and Zipcar allow you to explore local destinations conveniently and more affordably than car rental services. However, there are risks of auto accidents in both arrangements. And that’s precisely why you equally need non-owner car insurance if using car-sharing services. 

If you’re applying for temporary or occasional driving jobs

You may need non-owner car insurance if applying for a job that includes occasionally driving a vehicle you don’t own. These include personal aides, bodyguards, etc.

If it’s a legal or regulatory requirement

In some jurisdictions, law enforcement may require persons with certain driving-related offenses to have non-owner car insurance. The offenses range from past DUI convictions to driving without insurance, license suspensions or revocations, etc. 

If you’re seeking to reduce or eliminate the coverage gap

‘Coverage gap’ in insurance is a term during which an insured person doesn’t have any active policy. Many insurance companies consider people who go for longer periods without insurance coverage as high-risk individuals and impose higher premiums the next time such persons attempt to procure a policy. Having non-owner car insurance reduces or eliminates coverage gaps. 

Wrap Up

Non-owner car insurance offers many benefits. If you frequently drive someone else’s car but don’t already have this policy, contact your insurer today and discuss the possibility of purchasing it.

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