Understanding Non-Owners Auto Insurance

When it comes to auto insurance, there are many people who don’t understand their coverage. In fact, there are people without cars who don’t see the need for coverage at all, although they drive. To make matters worse, they assume that the car owner has insurance that will cover them and the other vehicle if they are in a wreck. Unfortunately, assumptions like this prevent non-owners from purchasing the insurance they need.

What is Non-Owners Auto Insurance?

Typically, non-owners auto insurance provides individuals who don’t have a car with similar financial protections as car owners with insurance. If you are borrowing or renting a car, non-owners insurance gives you liability coverage to help cover the cost of liabilities in an at-fault accident. Non-owners car insurance is a great option because it may prevent you from dipping into your nest egg.

For businesses, non-owners car insurance is a little different. With many businesses relying on their employees to carry out business transactions using the company vehicles, non-owners car insurance can help businesses cover the cost of liabilities in an at-fault accident in which an employee was behind the wheel.

Who Should Purchase Non-Owners Auto Insurance?

In many cases, purchasing non-owners insurance is considered optional coverage. If your state requires non-owners car insurance or you’ve been mandated to purchase coverage due to DUIs, then the coverage is no longer optional. When it’s not compulsory, most people who purchase non-owners car insurance are those who are trying to mitigate the chances of a financial hardship. For instance, someone who frequently rents cars may find it in their best interest to purchase non-owners insurance.

How Much Coverage Do You Need with the Policy?

When it comes to your choice of coverage amounts, it’s imperative that you choose a coverage level that can cover a wreck and all the costs associated with it. The best way to determine the coverage level is by working with a licensed insurance agent, like our staff. With information about your policy, your needs and the average costs of wrecks, we can help you determine the best coverage level for you. With non-owners insurance being a cost-effective option, you can purchase a large amount of coverage without breaking the bank.

Even though you don’t own a car, you should consider having car insurance. By purchasing a non-owners insurance policy, you may be dodging financial hardship down the road.