To make things simple right from the start, there are only a few situations where it is not necessary to have car insurance even if you don’t own a car. If you plan to drive a car at all, it is usually advisable to have some form of coverage. A non-owners’ car insurance policy can help keep you covered for many of these situations.
What is Non-Owners’ Car Insurance?
It is a type of car insurance that provides liability protections for drivers that rent or borrow cars. The liability offered by the policies pays for injuries as well as damage to other people’s property in case you cause an accident in a car that you don’t own.
Understanding Non-Owners’ Policy
It is important to look into such coverage more in-depth and look at situations where it can be beneficial and instances when coverage is not necessary.
When is it Beneficial?
Borrowing a Car: If you regularly borrow a car and are not on the policy of the person from whom you are borrowing, then it could be beneficial to have a non-owner car insurance policy. While you might assume that you don’t need it since you rarely borrow a car, it is impossible to predict when you will be involved in an accident.
Renting a car: You need such policy when renting a car. Some rental agencies and credit cards offer other insurance policies, but some type of insurance is required when renting a car. If your credit card does not offer coverage, this policy will save you money compared to what the rental agency offers.
When is it Not Necessary?
Deployed in the Military: If you own a vehicle, but have been deployed for military service, it is not necessary for you to carry any form of car insurance unless somebody will be driving the vehicle while you are away such as spouse or family member.
On a Policy: If you are on your parents’ or single mom’s car insurance policy or live with somebody that has put you on their policy, you need not worry about non-owners’ insurance. The important thing is to ensure that the person that has listed you on their coverage does not take your name off without informing you.
Leasing a Car: A non-owners’ policy is not necessary when you are leasing a car. When leasing, you require full insurance since you technically “own” it while it is in your possession. You are required by law to have full coverage when leasing and a gap protection policy is also recommended.
The Bottom Line: Do You Need Insurance Even If You Don’t Own A Car?
If you don’t own a car, but you still plan to drive around in a rental or a borrowed car, it is highly advisable to get some form of car insurance. For most people in such a situation, a non-owner policy will provide the necessary coverage to hit the road with great confidence.