How to Get Auto Insurance if You Do Not Own a Car

For licensed drivers, carrying insurance is required by law nearly everywhere. For those who do not own a vehicle, auto insurance is still necessary for those times when they will be driving, whether it be a rental car or one borrowed from a friend or relative. Only those who do not drive due to age, disability or license suspension (in some states only), do not need to carry coverage.

Things You'll Need

• Valid driver's license

Instructions

Getting Nonowner Auto Insurance

1. Determine how much time you will spend operating nonowned vehicles. You'll need to provide information about ownership of the car(s), whether you are listed as a named insured on any other person's insurance policy and how much you intend to drive nonowned vehicles.

2. Check with your employer about insurance coverage if you drive a company vehicle for personal use during nonbusiness hours. Your employer may require you to carry a certain liability coverage limit when using company-owned vehicles.

3. Get free quotes online, through a website such as InsuranceDesk.com or Answer Financial (see Resources).

4. Call your insurance agent to request an additional quote if you already carry homeowners or rental insurance. You may be able to get a multipolicy discount if you purchase your nonowned auto coverage through the same insurance company.

5. Choose a policy that best fits your needs and your budget. The basic coverages of a nonowned auto insurance policy include liability (including injuries and property damage), medical payments and uninsured/underinsured motorist coverage, which may not be a legal requirement in your state of residence.

Tips & Warnings

• For claims purposes, the vehicle owner's insurance pays out first, and the driver's (your) insurance pays any remaining balance. If you rent cars on a regular basis, it may be more cost effective to purchase your own nonowned policy rather than paying the higher insurance premiums charged by rental agencies.

• Never assume you will automatically be covered under the vehicle owner's insurance. A nonowned auto policy does not include coverage for damage to the nonowned vehicle. Check with your agent to see if this can be added to your policy as well as the cost of doing so.

References

• Car Insurance for Drivers Who Don't Own Vehicles
• Non Owner Auto Insurance

Resources

• Read this Article in Spanish
• InsuranceDesk.com-One Form, Multiple Quotes
• Answer Financial-Car Insurance Quotes