Some folks can get by just fine without a vehicle. Examples include people who live in big cities and have access to public transportation or prefer to use car services such as Uber or Lyft. However, just because you don’t own a vehicle doesn’t necessarily mean you should go without car insurance. There are circumstances where it makes sense to consider purchasing non-owned car insurance to protect your financial interests. Non-owner policies cover you when you occasionally use someone else’s vehicle.
Non-owner car insurance policies provide liability coverage for people who do not own vehicles. Liability insurance pays for injuries or property damage you cause while driving a car, truck, motorcycle or recreational vehicle. Without this coverage, you might have to pay the other party out of your pocket, an expense that most people cannot afford. In some states, non-owner policies may also include uninsured and underinsured coverages, compensating you when another driver is at fault but doesn’t carry any or has a low amount of liability insurance.
Non-owner auto insurance policies do not offer physical damage coverages, known as collision and comprehensive. Collision pays for the cost of repairing the policyholder’s vehicle or replacing it in situations where the auto is “totaled.” Comprehensive insurance covers non-accident-related issues such as theft, chipped windshields, damage caused by fire, vandalism, and falling objects. The owner of the vehicle is responsible for carrying physical damage protection.
