Monday, September 1, 2014

Cheap Auto Insurance Might be Necessary Even if You Do Not Own a Car

Most people know that you need to buy car insurance whenever you own a vehicle. Not only is it a legal requirement, it also keeps you safe on the road.
What you might not know is that in some cases, it is good to purchase a special type of cheap auto insurance for non-car owners. Here are some guidelines to determine if this type of policy is good for you.
Are car insurance policies necessary if I do not own a car?
If you operate a vehicle - even if it is not yours - you might need to have an insurance policy in order to protect yourself and the owner of the vehicle. People who live in cities where public transportation is available and cheap oftentimes choose to go without a vehicle. They might pass on a car in order to save money, protect the environment, or just because they find owning a car bothersome. However, even if you have a great public transportation system, there might be times when you might wish to have a vehicle to use. This could lead to renting or borrowing a car multiple times a year. If this describes you, it might be best for you to purchase an affordable non-owner insurance policy. These policies are a type of cheap auto insurance that will keep you protected in rented or borrowed vehicles. These policies not only protect you on the road, but oftentimes can save you money as well.
How much does it cost to purchase a non-owner car insurance policy?
How much you pay for a non-owner car insurance policy will be determined by where you live, the coverage you need, and how many drivers you wish to insure. However, these policies are typically much cheaper than cheap auto insurance policies for car owners. In fact, these policies will often times only run you a couple hundred dollars a year.
When do non-owners need an insurance policy?
The most obvious time that people will need a non-owner insurance policy is when they frequently rent vehicles often. This could be because you travel, either for business or leisure, or because you do not have your own car but still need a car for some reason. Whenever you rent a car, they will offer you the opportunity to purchase rental insurance. However, this insurance is often times costly, and if you rent cars often, it is more cost-efficient to purchase your own policy.
Many credit cards offer a certain amount of coverage to rental cars as long as you purchase a rental car using the credit card. Most of the time, credit cards only cover liability, so if you would like more extensive coverage it is still best to purchase your own policy. Liability insurance is what is legally required to drive in most states.
Another time that non-owners would need their own insurance policy is if they frequently borrow a car. You could borrow a car at family functions, or maybe it's just your spouse's vehicle. Whatever the case, if you frequently find yourself behind the wheel of a car that you do not own, it is in your best interest - both financially and for personal safety- to have your own insurance policy.