Getting Auto Insurance For Those Who Don't Own A Car
If you don't own a car, it's likely that you don't have an auto insurance policy. But there are some situations in which it might be beneficial to have it. You'll first need to understand when you are covered and when you aren't, to determine whether a non-owner insurance policy might be right for you.
Car Insurance Generally Goes on the Vehicle Itself
For the most part, cars are insured, not people. Effectively, that means that you aren't required by law to have insurance unless you own a car—it is the car itself that is required to be insured. As long as a vehicle you drive has insurance, you aren't legally required to have insurance. Thus, the question of whether to get non-owner insurance isn't a legal one, but rather a practical and financial one.
You May Already Be Insured
If you live in a household with someone whose car you frequently borrow, not only may you already be insured, but you probably have to be insured. The person who owns a car is required to list people in their household who regularly use it on their insurance forms, and these people will impact the insurance premiums. If you are not listed at the time of an accident, the accident may be denied coverage. But this is only if you live in the same household as the person whose car you borrowed.
You Frequently Rent Cars or Use a Car-Sharing Service
If you're frequently using a car-sharing or car-borrowing service—or you rent cars for travel—getting a non-owner policy will save you money long-term. Otherwise you will usually need to purchase insurance on a case-by-case basis through the car rental or car share itself, and usually you'll need to pay more than you would if you simply had your own policy.
You Are Borrowing Cars That Are Under-Insured
When you borrow a car, you're borrowing it under your friend's insurance policy. But what happens if you get into an accident and that policy has its coverage exceeded? You will be responsible for the additional amount—assuming you were at fault—not the owner of the car. If you have non-owner insurance, on the other hand, your friend's policy will be expended and then your policy will kick in if it needs to.
A non-owner policy is essentially additional insurance that will ensure that you are covered in the event that you cause an accident in someone else's car. If you frequently use the vehicles of other people, it's a good idea to have—even if it isn't strictly required by law.
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