How To Buy Non-Owner's Car Insurance

A non-owner's car insurance policy is for people who drive rented or borrowed cars often. It provides coverage for damages to property or injuries to another person caused by the borrower or renter. Non-owner's car insurance does not provide collision coverage (damages to the rented/borrowed vehicle) since it is a liability-only insurance policy.

Expensive parking fees, limited parking spaces and traffic congestion as well as high cost of insurance in big cities make this type of insurance policy popular in metropolitan areas. Many people living in Chicago and New York for example rely on rentals, borrowed cars as well as the city's transport system rather than owning cars. If you find yourself borrowing someone else's vehicle often or you rack up miles traveling in rented cars, a non-owner's car insurance is a great way to protect you from financial worries in case you get into an accident.

Some states require drivers to present proof of insurance. This happens when a driver has been previously caught driving without insurance or when he has had several DUI records in that state. Having a non-owner's car insurance is the least expensive way of abiding by this state requirement.

When planning to buy a non-owner's car insurance:

1. Do your research. Find out which insurance companies offer this type of policy. Call different insurance companies directly or search for this information on the web. If you already have an insurance company providing you with other types of coverage, ask if they can include a non-owner's car insurance in your package. If the car is borrowed from a friend, ask who handles his car insurance. You may be able to get lower rates if you get a policy from the company holding the insurance on your friend's car.
2. Find out what is covered and what the terms and conditions are for such a policy. Insurance companies may base policy premiums on the insurer's age or gender as well as his driving history. Ask if it is possible to add on towing and rental reimbursement, collision coverage, and other optional items that are not normally covered by non-owner's policies. Inquire about ARP or "Assigned Risk Plan". This plan is offered by the state to the insurance company. The insurance agency should in turn base the policy offered to you on the ARP.

3. Request for and compare quotes. Request for quotations from several insurance companies. Once you have all the quotes, compare them to see which one can give you the best coverage at the lowest cost you can afford. Usually, a non-owner's auto insurance premium costs half as much as that of a regular car insurance premium. You can also find insurers that offer discounts if you pay several months in advance. Instead of calling several insurance companies, you can go to Online Auto Insurance. It is an online site that allows you to compare different quotes from several insurance companies.

Many people choose not to own cars for different reasons. They rent or borrow someone else's vehicle instead. Unfortunately, a person driving someone else's car is still liable to pay for damages or injuries in case he gets into an accident. A non-owner's car insurance is one way to ensure that the non-owner can cover any liabilities. It is a means of protecting himself from additional financial strain should an accident occurs. By doing some research and pencil-pushing you can easily find a non-owner's car insurance policy that you can afford and provide you with the necessary accident protection as well as peace of mind.