Non-Owners Insurance Information

There are a number of reasons why a person might not own a motor vehicle but still wish to be covered with automobile insurance. People who live and work in a metropolitan area with access to public transportation and college students who live on campus may not want the added expense of a car payment, parking fees and regular insurance. However, they may want the security of knowing they are insured when they rent a car or borrow one from a friend.

Considerations

There are several limitations on the coverage provided by non-owner automobile insurance policies. These policies typically do not cover vehicles owned by the policy holder. They do not cover vehicles operated for hire nor for vehicles provided by your employer. They also do not typically cover vehicles owned by family members or residents of your household.

Function

Non-owner insurance only provides secondary coverage for the policy holder. This means the insurance policy assigned to the vehicle would have the primary responsibility for paying any insurance claim. The non-owner policy would provide coverage only after all other forms of insurance are exhausted. At that point, the non-owner policy would be responsible for any claims in excess of what the primary policies would cover.

Warning

Non-owner auto insurance does not provide collision or comprehensive coverage. It only provides liability coverage for property damage and bodily injury. This type of insurance typically does not provide roadside assistance nor rental reimbursement.

Misconceptions

Unlike many auto insurance policies, a non-owner insurance policy will not provide coverage for a vehicle you purchase. For the newly purchased vehicle to be covered, you must contact your insurance company, request the appropriate coverage and meet the insurance company's requirements for payment of the premium.

Benefits

Non-owner automobile insurance does provide protection against liability in the event someone is injured by you in an at-fault accident. It also provides protection against uninsured or under-insured motorists and provides personal injury protection. Having a non-owner policy can also provide you with the required proof of insurance in the event you are stopped by the police whether the vehicle you are driving is covered or not.

Resources

• About Non-Owners Auto Coverage