What Non-Owner Auto Insurance Covers and How Much It Costs

What Non-Owner Auto Insurance Covers and How Much It Costs
Non-owner auto insurance policy is an affordable alternative to buying a full coverage policy on a car; as it grants liability coverage and other protections while you drive someone else’s vehicle. But what exactly does non-owner auto insurance cover and how much does it costs? Lets have a look.

Firstly, non-owner auto insurance can provide financial protection for you and other drivers in the event of an accident; and also covers other damages like medical costs, property damages, and more. You’ll be protected from liabilities when someone else’s vehicle is involved in the accident. Non-owner insurance comes at an affordable price depending on the state you live in.

In general, non-owner auto insurance is much cheaper than a full coverage policy. The average cost of a non-owner auto policy ranges from $200-$350 per year for basic coverage, with deductibles and other variables such as vehicle type, age, and driving history affected. Its also important to consider that coverage with non-owner auto insurance is typically minimal; though some states might require specific coverage limits.

Furthermore, you should bear in mind that most non-owner auto insurance policies have exclusions like claims resulting from an intentional act, coverage for theft or acts of vandalism, and others. Drivers with bad credit, or multiple at-fault accidents may have a difficult time obtaining such policies, as well as have to pay higher premiums.

On the other hand, non-owner auto insurance can be used to meet the proof of insurance requirement to reinstate a driver’s license, or to maintain a good driving record; since it includes liability coverage for those who traditionally don’t have a car or don’t drive regularly.

Finally, each state regulates auto insurance differently, so its important to understand your states’ minimal requirements before making a purchase. For most drivers non-owner auto insurance is a great way to protect yourself in case of an accident, but its important to compare the coverage and cost of different policies and get the best fit for your situation.

In addition to the above, non-owner auto insurance also covers towing and labor costs in the event of an accident as well as rental car coverage, if necessary. It also helps drivers who are selling or test driving a car and are looking for a short period of coverage. It’s paramount for drivers to think twice before purchasing any kind of auto insurance.

The question we all ask is whether non-owner auto insurance is worth it in the long run; and the answer is that it’s highly goal specific. It’s good for those who don’t want to invest in a full coverage policy, or want protection from liabilities while driving someone else’s car. At the same time, such policies have certain shortcomings, and should be carefully weighed against a full coverage car insurance policy before making a purchase.

In addition, non-owner auto insurance is also helpful to those who drive without valid insurance; as it can help them keep their license, or help drivers maintain a good driving record; if they have to drive someone else’s vehicle. On the flipside, the coverage is typically minimal, and it might be wise to look into other more expensive policies that offer more coverage and better features.

In the last analysis, non-owner auto insurance policies are ideal for those who don’t own cars, but need protection against financial losses; or to protect their licenses in case of an accident. Nevertheless, one should always ask questions, compare the different policies, and find out what their particular state requires; before making a purchase. When it comes to getting the right auto insurance policy to fit ones needs; you won’t find a one-size-fits-all solution.