In recent times, the rates of car insurance have gone down, especially in the younger generation. People do not really prefer owning a car now; they just rent one, borrow one or utilize car sharing services if they ever have to drive.
Now here is the problem with this situation and something most people do not know; even if you do not own a car, but you drive one, you need coverage. Often this is referred to as the non-owner car insurance policy, which is purchased by many people to protect them if they ever have to face an accident or another unfortunate incident.
A non-owner car insurance policy protects you in accidents that are your fault. The car will be covered and so will the driver, but the coverage is limited and does not include collision coverage or other extensions. This is because you are not the vehicle owner. As for the type of car for which coverage will be offered, that can be any as long as the validity of your policy has not expired.
So who can make use of such a policy? People buy such an insurance policy so that they are provided with coverage in case they suffer from an accident, which leads to damages worth excessive costs. The policy is a cheaper option than one offered by rental car agencies.
We talked to some key industry experts and they presented us with a few situations in which a non-owner can insurance policy can be a good choice.
You frequently rent cars
How often do you rent cars? If you are doing this for nearly 60 days in a year and your rental company offers you liability coverage for a daily rate of $10, you will be better off with a non-owner can insurance policy.
You utilize car sharing services
Just like a rental company, a car sharing service also offers some coverage. If someone injures a person in an accident, the lawsuit will be against the car-sharing service and the person who was driving the car. In such a case, legalities can be dealt with in a better manner if you have your own protection.
You driving history is not very good
If your driving history is filled with issues, you should buy a non-owner can insurance policy.