Who needs Non-Owners Auto Insurance?
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.