Non-Owners Insurance: The Basics in Protection
If you own a car, you need car insurance. If you own a home, homeowner's
insurance is a must. But what if you rent or borrow your car or house instead
of purchasing them? Do you still need to buy insurance coverage if the home you
live in or the automobile you drive doesn't belong to you?
Absolutely! Ownership is only one prerequisite for purchasing
insurance. In fact, insuring cars or homes you lease or borrow is the only
tried-and-true way to make sure you, your possessions and everyone around you
stays safe and protected while you're on the road or at home—no matter where
you live or drive.
Non-Owner Car Insurance
Non-owner car insurance is not a specific type of insurance, but rather
refers to all the possible policies for individuals who rent automobiles or
drive the cars of family and friends.
With the rising cost of fuel, automobiles and insurance these days, many
people are foregoing vehicle ownership completely and taking public
transportation to work or school or participating in carpools.
When they really need a car, they simply borrow one from a friend or family
member or rent one from a local rental agency.
That's where non-owner car insurance comes in. For those who only drive
occasionally and don't own a car, non-owner car coverage provides insurance in
the driver's name and protects against:
- Liability (financial
responsibility when you hurt someone else)
- Uninsured/underinsured
motorist protection
- Personal Injury Protection
(PIP)
- Medical payments coverage
Considered very basic insurance, it does not cover:
- Comprehensive or collision
damage
- Towing reimbursement
- Rental reimbursement
Though equivalent coverage can be purchased at a rental car counter, buying
a non-owner car insurance policy is usually more cost-effective if you rent a
car more than a few days a year.
What does it cost? About $300 to $500 per year, depending on where you live,
your driving record and other underwriting guidelines set by auto insurance
companies.
One important note: This type of coverage kicks in only
when all other car insurance policies are tapped out. So if you borrow your
neighbor's car and end up in an accident, his insurer covers the damage that
results up to that policy's limits—and your non-owner insurance policy picks up
from there.
For more information on rental car insurance, see our article titled, "Rental
Car Insurance—Do You Really Need It?"
Non-Owner Home Insurance
Non-owner home insurance is not a specific type of insurance either. It
refers to the types of insurance available to people who rent an apartment,
condo, townhouse or home.
If you'd rather avoid the hassle and headache of purchasing a home—or you'd
like to delay it until some future point—renters' insurance can provide the
basic coverage you need to protect your assets in your rental.
Whether you lease a house, condo, townhouse or apartment, having renters'
insurance means you never have to worry about keeping your possessions safe,
dry and intact. Why? Because it protects everything inside your home from
disaster…and that includes you and your visitors.
For more detailed information on non-owner home insurance, we recommend
these articles:
What
You Need to Know About Renters Insurance
The
Low-Down on Condo Owner Insurance
Apartment
Insurance: Coverage for Renters
What
You Need to Know About Townhouse Insurance
Get Covered!
Sold by several national insurance carriers, non-owner insurance policies
are a must for those who rent or borrow their cars or homes.
InsureMe can match you with local agents ready to compete for your home
insurance business.
