Top Reasons To Buy Non Owner Liability Coverage

If you don't own a car, but occasionally to rent or borrow one for weekend escapes or out-of-town business trips, you should consider purchasing non owner liability coverage.

 

Non Owner Liability Coverage Defined

This auto insurance package covers:

• Bodily Injury: Covers the medical costs of the other driver and passengers involved in an accident caused by your negligence.

• Property Damage: Covers the repair costs of the other car or cars involved in an accident caused by your negligence.

Because it's liability insurance, it only covers for your negligence. This means if your mistake causes a car accident, your non owner liability coverage will pay the other driver's medical and vehicle repair costs (up to the policy's limits, of course). It does not, however, repair the damages for the rented or borrowed vehicle you're driving.

If you prefer additional protection to cover your expenses in the event of an accident, you'll need to take out comprehensive, collision, or even personal injury protection (if available in your state). These are separate car insurance policies, available from all car insurance companies.

 

Vehicles Covered Under Non Owner Liability

Non owner liability insurance is limiting in that it only covers rental cars and borrowed vehicles driven by you. It does not protect:

• Any vehicle registered under your name.

• Any vehicle titled to you.

• Work-related vehicles.

• Non-private passenger type vehicles.

• Any vehicle owned by a resident of your household; say, for example, you daughter's car.

• Any vehicle that's loaned to you on a regular basis.

With this protection, you do not need to buy rental car insurance when renting a car―you're covered.

If you do buy a vehicle while carrying non owner liability coverage, you will need to upgrade your insurance to meet your state's mandated liability insurance requirements.

 

Shopping for Non Owner Liability Coverage

When looking for a provider, shop around and compare quotes, just as you would with regular liability car insurance. The more quotes you compare, the better your chances of finding a rate that meets your budget and driving situation.

You'll find that non owner liability rates are far less than the rates for full-time car insurance. These rates do vary by state.