Is it possible to own car insurance without owning a car? Yes, it is. Non-owner car insurance is a special policy designed to meet your purpose.

If you are borrowing a car from someone or renting a car during your trip somewhere, the required liability coverage is covered under non-owner auto insurance. Such coverage, on your behalf, pays for property damage or injuries caused to passengers or other drivers due to your fault.

How to be sure if non-owner car insurance fits your bill or not? Have a look at the following points.

• Have you been found guilty under DUI (Driving under Intoxication) laws or convicted of some serious charges and you are required to fill up an SR-22 form (also known as FR-44 in some states) as per the rules and regulations of the state you live in – for owning a driver’s license or reinstallation of the same? These forms actually testify that you own car insurance. Even if you don’t have a car, a non-owner policy will be a good solution.
• Do you travel frequently and use renting car service very often? In that case, a non-owner insurance policy will be a cheaper alternative to paying for liability insurance.
• Do you borrow others’ cars very often? In that case, if you are driving the car and responsible for an accident, the owner’s insurance will make the necessary payment for damages. However, if the cost is more than your friend’s liability, you will be responsible to pay the rest. Non-owner insurance will supplement the policy of the individual the car is borrowed from.
• Do you frequently use car-sharing service? If yes, a non-owner auto insurance policy will be a good supplement to liability coverage provided by car-sharing service. It is a much-required extra layer of protection if you need to protect other assets in case, an accident victim lodges a complaint against you.

When You Don’t Need Non-Owner Insurance

If you regularly access someone’s car and have coverage provided by the owner’s insurance policy, you will not qualify for non-owner insurance. You are also not a good candidate for such insurance if you use your parents’ cars. Their auto insurance policy will consider you a driver.

Coverage under Non-Owner Car Insurance

First of all, non-owner car insurance provides liability coverage. Apart from that, it also offers medical coverage for you. In some states, uninsured/underinsured motorist insurance is also included in such policies.

Uninsured/underinsured motorist insurance pays for your medical bills if a driver without liability insurance happens to be the responsible party for an accident leaving you injured. Even if the driver has liability insurance but it is considered not enough, the non-owner insurance will pay your medical bills for car accident injury.

What Is Not Covered Under Non-Owner Auto Insurance?

Unlike the standard auto insurance policies, non-owner insurance provides no coverage for collision and replacement or repairing of the damaged vehicle parts. It implies that with non-owner auto insurance, you need to adopt precautions at the car rental agency. Use a credit card that offers rest of the required coverage not provided by your non-owner insurance.

Miguel Gongora