Non owner car insurance is liability coverage for people who do not own a car but who occasionally may drive a car belonging to someone else. The most common occasion when this type of insurance is needed is for car rentals.
Sometimes the coverage offered by the rental company can reach as high as about $30 per day. This rate may get too expensive for the driver if the car rental is for an entire week.
When an accident occurs while a non-owner is at the wheel, the damages caused by the accident are covered by the policy the car owner has. When the damages exceed the allowable amount that the owner’s policy covers, then the non-owner policy kicks in to take care of the remaining damages.
The non-owner policy does not take the place of an owner policy. It will not cover collision damages to the car the non-owner is driving or damages to a car that a non-owner policyholder buys after securing the non-owner policy. It will not protect others who drive the same car. The policy will not reimburse you for rental fees required after a non-owner damages a car. It can, however, cover personal injury and medical expenses after all other policies have been exhausted.
Not all insurance companies offer this type of coverage. Qualifying for it through companies that do offer it, though, will require that you have a valid driver’s license. Some companies may have limitations for new drivers or those who have had accidents while insured on another primary policy. If you are a homeowner and carry homeowner’s insurance, for example, it is possible to secure non owner insurance for a car through the same insurance company. In many of these cases, the insurance company gives discounts for adding the extra coverage to an existing home policy.
Premiums on a non owner policy can increase for some of the same reasons that they do on traditional policies. Traffic tickets and car accidents are the most common causes of rate hikes. Even in the event of premium increases, the policy is rarely as expensive as a regular policy held by a car owner to cover his car.