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Understanding the Coverage Offered by Non-Owner Car Insurance

person handing over car keys, what is non-owner car insurance?

What is non-owner car insurance?

If you don’t own a car, then you probably don’t think that you need auto insurance in Carrollton, Texas.  However, if you drive other people’s cars or use car-sharing services, then you can benefit from having the protection offered by non-owner car insurance.  But what exactly does this insurance cover?  Here’s what you need to know.

What does non-owner car insurance cover?

Non-owner car insurance offers liability coverage when you are driving a vehicle that is not yours.  Liability coverage will pay for third-party injuries and damages that you may cause during an accident.

What are the limits on non-owner car insurance?

Because non-owner policies only offer liability coverage, you will not have coverage for the injuries that you or your passengers sustain during an accident.  Additionally, you will not have any coverage to pay for damages to the car you are driving.

It’s also important to note that non-owner car insurance will not offer adequate coverage if you are borrowing a car from someone who lives in your home.  For instance, if you live at home and you borrow your parents’ cars, then they should add you to their existing policy rather than relying on you to get non-owners car insurance.

Who needs non-owner car insurance?

Non-owner car insurance isn’t right for all drivers.  However, you may want to consider securing this coverage if you:

  • Need an SR-22 or FR-44- If you don’t own a car but need your license reinstated, then you can secure non-owner car insurance to meet the insurance requirements necessary to file an SR-22 or FR-44.
  • Use Car-Sharing Services- If you use a car-sharing service such as Zipcar or Car2Go, then the company will offer you limited liability coverage. To supplement this coverage, you can secure a non-owner policy to ensure that accident costs do not come out of your own pockets.
  • Want to Maintain Coverage- If you have a gap in your car insurance, then this will mark you as risky to insure. If you are getting rid of your car, but don’t want to have a gap in your coverage, then you can secure a non-owner policy to tide you over.
  • Rent Cars Frequently- If you often rent cars, then having a non-owner insurance policy may be cheaper than buying liability insurance through the rental company. Remember, non-owner policies will not cover damages to your rental car, so you will still need collision and comprehensive coverage from the rental company.
  • Borrow Other’s Car Frequently- If you often borrow your friends’ or family members’ cars, then their insurance will cover you in an accident. However, the cost of a crash may exceed their liability coverage limits.  By securing a non-owner policy, your liability coverage can supplement the car owner’s.

This is what you need to know about non-owner car insurance.  Do you have additional questions about your auto insurance in Carrollton, Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.   Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.