No Car? Do You Still Need Auto Insurance?by Anna Glendenning | More from this Blogger 24 Mar 2006 10:18 AM
If you drive at all, it's a good idea to have an automobile insurance policy--even if you don't own a car. Most insurance companies offer a "non-owners policy" for people who don't own a car but occasionally drive or rent a car. Non-owners policies usually cover an insured with liability, medical payments, and uninsured/underinsured motorist coverage. Non-owners policies usually don't insure for comprehensive, collision, towing reimbursement, or rental reimbursement coverage. Most drivers can get just about the same insurance coverage when renting a car by purchasing the car rental insurance offered by the rental company. However, if someone rents a car for more than, 10 days per year, it is usually more cost effective to purchase a non-owner auto insurance policy. The usual non-owners policy premiums will range in cost from $300 to $500 per year. The premium will vary depending on where the driver lives, the driving record, and some other underwriting information. A non-owners auto insurance policy offers coverage for any car the insured driver wants to drive, not just rental cars. If the insured driver borrows a car from a friend and then were to get into an accident, the friend's insurance would be the first to cover the losses But if the accident was your fault and the damage to the other driver's property exceeded the liability limits on your friend's policy, your non-owners insurance policy would cover the excess, up to policy limits. If you don't have a car now and plan to get one in the future maintaining a non-owner auto insurance policy will also give you prior insurance history and offer you more preferred premiums when you do purchase a car and want to cover it fully with insurance. Photo credit for this blog entry:
Glossary of Insurance Terms: A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase. Learn more about Anna Glendenning  Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork. Relevantinsurance tags quotes | money | health | home | Tips | prescription | teenagers | Travel | insurance | home business User Comments  Jaime Egan (2178) 24 Mar 2006 04:40 PMI didn't know most of that stuff about non-owners getting policies. Great info.  Anna Glendenning (4234) 24 Mar 2006 08:22 PMThank, most people don't know about non-owner auto insurance and it is a great way to keep your Insurance History so that when someone does buy a car the costs are not nearly as high...Plus anyone who has an assets and drives at all is exposed to some real liability issues. A few hundred dollars a year can offer great protection for someone who drives a company care too. New Jersey Car Insurance (5) 02 Apr 2006 08:04 PMI think that if you own a car it is crazy not to carry car insurance. Most states require it anyway - and uninsured drivers cost insured drivers billions each year. Anna Glendenning (4234) 05 Apr 2006 04:11 AMNew Jersey Car Insurance, I agree if someone owns a car it is crazy to not carry liability coverage on the car, even if it is parked inside a garage and not driven! I also think it is a wise idea for those who don't own car's but, rent or drive someone elses' car to carry a non-owner auto liability policy. I also like the non-owner policy for someone who might spend a long period of time without a car. By continuing to maintain their auto liability insurance with a non-owner policy they may not be penalized when they do buy a car and are seen as a person without prior insurance. ConfusedBunny (10) 09 Apr 2006 01:22 PMHELPPP!!, just got my license and never had a car. I called AIG, Esurance, Geico, Progressive and MetLife and I was told that the only way to get a non-owner's insurance policy is if the state requires me to have something called SR-22. This is for folks who had accidents in the past and didn't have insurance. Obviously it doesn't help me. I really don't want to pay $12 a day for liability to the rental companies. Please tell me which insurance company provides non-owners liability insurance coverage? Anna Glendenning (4234) 09 Apr 2006 02:55 PMIt may be an issue with your state insurance laws. Your best advice it to talk with an insurance agent in your state, especially one who handles several different companies. Specifically ask about auto liability for someone who rents cars often there may be coverage by some other name for people who drive but, don't own a car. It isn't usually about the Insurance company but more likely your state laws. Feel free to PM me and I will research your state. ConfusedBunny (10) 11 Apr 2006 08:22 AMAnna, Spoke to another person at GEICO and they issued me a non-owner's auto insurance in 5 mins!! Not sure why the first person gave me different info. I pay $342/6-month with: Bodily Liability: $300/500K Property Damage Liability: $100K Underinsured Motorist: $300/500K Anna Glendenning (4234) 24 Apr 2006 06:24 PMInsurance can vary from one state to another BUT also from one company to another. Some Insurance companies decide they will or will not offer certain kinds of insurance products. Just because the insurance company doesn't insure something does not mean another won't! I am glad you have found coverage. Your premiums should go down over time, If you haven't had auto insurance continuously for the last year then the first year of insurance is generally the most expensive. The good news is that once you have an insurance history your rates and choices will be better. When and if you do ever buy a nice car you won't have to start out with a high insurance premium! ronnieg (85) 11 Aug 2006 11:08 PMExpert auto insurance information. ronnieg (85) 11 Aug 2006 11:14 PMCompanies can vary up to $600 per policy. Does anyone offer anymore auto insurance tips. http://www.nationwidebillrelief.com Community Tags Auto Insurance Non-Owner Discuss this article
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In some parts of the country owning a car is not as important and many people use mass transit and rent cars for a weekend get-a-way or vacation. Urban Americans are choosing to use public transportation for day-to-day commutes. Young adults away at college find it is actually easier to live on campus without a car. When it's time to get away from the city, or make a visit back home most people find a car is the easiest way to get where they want to go. 
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