You can get auto insurance even if you don't own a car. While you may not be required to have insurance in your state if you don't have a car, there are some reasons to have it. Here is more about non-owner car insurance, who needs it, and how it can benefit you even if you don't have plans to buy a car.
What Is Non-Owner Insurance?
Non-owner car insurance is exactly what the name implies. This is insurance for people who drive, but don't own a car. This insurance usually covers you for liability and bodily injury when you are driving someone else's car. You can also buy additional uninsured motorist and personal medical coverage as well.
Who Needs Non-Owner Insurance?
You may especially need or benefit from non-owner insurance if any of these things apply to you.
You Need to File an SR-22
Non-owner car insurance is required if you need an SR-22 and you don't have a car. You won't be able to drive again until you can prove you are insured.
You Borrow Other People's Cars Often
If you borrow many people's cars often, then non-owner car insurance covers you if you get into an accident. This could even include coverage for damage to the borrowed car.
You Rent Cars Often
In addition to liability coverage, you can get rental car coverage that protects you when you rent a car.
You Need to Avoid a Gap in Coverage
If you let your insurance lapse, then it affects your future rates when you reapply. If you sold your car and are not getting a new one right away, this insurance can keep you from having a gap.
Who Doesn't Need Non-Owner Insurance?
Not everyone needs this insurance. The following reasons why you won't need it are listed below.
You Own a Car
If you already own a car, then your liability will likely extend to other vehicles.
You Borrow a Household Member's Car
You can often add yourself to another household member's policy.
You Rarely Use Anyone Else's Car
If you mainly only borrow a friend or family member's car once in a while, then their insurance may cover you. However, not all companies extend this coverage so check, first.
You Only Drive a Company Car During Work Time
Chances are your employer has coverage for when you drive the company vehicle for business.
Not everyone needs car insurance if they don't own a car, but it is beneficial under certain circumstances. Many insurance companies sell this kind of car insurance at different rates. If you are one of those who could benefit from non-owner car insurance, then contact an auto insurance agency for more information.