Who needs Non-Owners Auto Insurance?

Auto Insurance, Non-Owner Auto Insurance, Non-Owner Auto Liability

Non-Owners Auto insurance is for people who don’t actually own a car. This type of car insurance coverage can be an important addition to your policy if you:
Consistently drive cars that do not belong to you. Such as those owned by your employer, frequently rent cars or frequently borrow cars.

Non-owners auto liability only covers damages and injuries you cause to others. This coverage does not extend to damages or injuries you might suffer in a car accident.

Why is Non-Owners Auto Insurance so Important?

People buy Non-Owners Auto Insurance to make sure they are insured from the potentially high financial hit from an at-fault car accident. For example, one client is a wealthy accountant who lives in New Jersey and doesn’t own a car, but he has assets to protect. He is renting a place in West Palm Beach this summer and will regularly rent a car. This policy offers extra liability protection and is cheaper than buying the liability policy from the rental car company.

Car ownership is declining, particularly among younger Americans. Many people, especially in urban areas, now prefer to use a car-sharing service. Or sometimes borrow or rent a car if they need to drive somewhere.

What is Non-Owners Liability Coverage?

Also known as “hired automobile coverage”, non-owner liability provides you with coverage if you cause injury or property damage to others in a car accident while you are operating a vehicle you do not own.

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Comments (5)

  • insure the car Reply

    Interesting stuff. I have never heard of this sort of policy here in Britain. You can insure your vehicle to be driven by any driver and you can also buy a policy which gives yo the minimum third party cover on other people’s cars (who have given you permission to drive it) but we do not have non owner policies.

    June 27, 2014 at 10:40 am
  • esemon idinye Reply

    What a wonderful educative post you have here.I quite agreed with what the above person’s comment made.these hire car coverage policy is a good welcome development for the young people especially for new graduates.but the question is how cheap this hire car insurance will be?
    thanks for the information.

    June 28, 2014 at 2:13 am
  • Dwain Reply

    This may be a big concern for you if you cannot afford comprehensive insurance and
    want coverage for yourself regardless of fault.
    For acquiring the most excellent deal and making a correct decision, you must
    try to collect more and more of the quotes. So a successful vehicle would naturally be well cared for and
    protected from the elements.

    August 3, 2014 at 3:47 pm
  • Kathie Reply

    My 18-year old son’s car was stolen a couple of weeks ago. Fortunately, the police recovered 23 hours later it Acerca in the next county. We did not have any available Comprehensive insurance on it, Therefore the insurance company Could not do anything other than cancel the policy. (We had it reinstated Immediately after we got the car back.) We now want to add to His Comprehensive plan. Were His laptop and smartphone in the vehicle and stolen, Along with the expensive stereo and speakers and his cd collection. Will the Comprehensive Increase For His vehicle Because They know this car was stolen in the past? They can rest-assured That He Learned a very good lesson the hard way and will never leave it running with the keys in it again. Not even for a minute! Thanks, Kathie ~

    August 7, 2014 at 12:15 pm
    • Igor Sekuloski, CPIA Reply

      Most of the insurance companies will not charge for this claim because it was Comprehensive claim and the payout was $0. Good Luck!

      August 8, 2014 at 11:14 pm

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