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.
