AUTO INSURANCE ARTICLE

Car Insurance For Non-Car Owners

By: beverly

Having an auto insurance policy even if you don’t owned a car is considerably a smart choice. If you are living in a city with a reliable public transport system and an accessible way going to your work place, you may consider not owning a car for your everyday use.

However, car rental services is needed when the time you need a vehicle for private use. Car rental services also sell vehicle insurance policies which covers you and the vehicle you borrowed for a certain rent period. This non owner auto insurance policy is more affordable when you frequently rent a car which avoid you from purchasing short term insurance coverage from rental companies.

If you are planning to borrow a car from your friends or relatives and they know that you have vehicle insurance policy, they will be more likely to let you borrow their cars. Furthermore, if you are the owner of the car, you will considerably allow a friend with car insurance policy to use your car than those who doesn’t.

In the event of accident, vehicle insurance policy for non car owners have some rules to consider. A non owner auto insurance policy will only use if the car owner’s liability auto insurance is not sufficient to pay for the damages you caused to others.

For example, you get involved in an accident with a car you borrowed from a friend which resulted to a total of 27,000 dollars damage cost. Basically, your non owner vehicle insurance policy will not be used, instead, the car owner’s auto insurance will cover the cost of the damages. Let say your friend has 30,000 dollar liability coverage, his car insurance will absolutely pay the total cost. On the other hand, if his auto insurance is not sufficient to cover the cost, let say the total damages is 40,000 dollars, your non owner car insurance policy will pay the remaining balance.