WHO NEEDS NON OWNER AUTO INSURANCE?
People who do not own (or long-term lease) the vehicle they are driving still need to get an auto insurance policy to cover their liability, as well as financial and physical risks.
People who need non owner auto insurance include:
• Long-term renters
• Frequent renters
• Those borrowing a vehicle for an extended period
• Those borrowing a vehicle regularly
WHY NOT JUST GET RENTAL INSURANCE EACH TIME?
While rental insurance seems cheap, it becomes very expensive for long-term or repeat terms. The risk of accident increases dramatically, as do the rates.
In addition, you do not get full protection from most rental policies. It is better to be certain and get a full auto insurance policy to cover your when you are in a vehicle you do not own.
HOW NON OWNERS AUTO INSURANCE IS DIFFERENT
Normally when someone who does not own the vehicle they are driving is in an incident, the owner’s auto insurance still covers everything. However, there are three important game-changing scenarios to consider:
1) The owner’s insurance limit is exceeded
Every policy has limits on what it will cover financially, or even in terms of the type of coverage itself. If a non owner gets into a collision and either the insurance won’t cover all of the damages to the vehicle owner or other people involved in the collision, it falls to the driver to cover the costs. You will be in a world of hurt if you don’t have the money or insurance to pay for this. Non owners insurance makes up for this disparity.
2) You aren’t covered after all because of long-term or repeat use
Many auto insurance companies require anyone who will drive the car regularly to be listed on the policy. This is because each driver’s record must be included in the risk assessment in order to determine the proper premiums. If they find out a driver wasn’t listed or the company wasn’t informed properly, they could drop the policy and deny any claims. This means it is up to your or the vehicle owner to cover all of the costs of the collision, should you be at fault. How do you determine who has to pay? Well, that’s the next point.
The vehicle owner or the other person in the collision could easily sue you, the driver, for your part in the accident.