Car sharing anyone? Don't forget to get also a non owners insurance quote. It may be the best fit.
Many people may assume that those who don’t own a vehicle would not have the need for
auto insurance. On the contrary, there are several reasons that someone may need to obtain auto insurance even if they do not own a car. This type of policy is referred to as a non-owner policy or some states refer to it as a bond policy.
Non-owner’s auto insurance typically will just carry the bodily injury and property damage liability requirements and then provide the option to drivers to include uninsured protection and first party medical benefits. Many companies that provide non-owners insurance do not offer physical damage protection such as collision or comprehensive and accordingly premiums are usually affordable, or even cheap. If you are looking for this options make sure you request a non-owner car insurance quote so you get the right offers.
Here are some of the most frequent reasons why you could need a non owners car insurance policy:
1. Borrowing A Car
It’s becoming more popular among environmentally conscious people to rely on alternate transportation to feel like they are a part of the solution to pollution rather than contributing to it. However, there comes a time in most people’s lives that a car would be very helpful or even necessary so they may get a task completed that they couldn’t do on a bike or on the city bus. If this occasion occurs often enough, it would make sense to have non-owners liability insurance policy in place to protect them from a situation in which they are sued for injuries or damage and the owner of the car does not have enough protection in their policy to pay it.
2. Renting A Car
Renting a car once a year for a weekend or holidays may not be a reason to buy a non-owner auto insurance policy. However, for someone who regularly rents vehicles, it would not only protect them better, but they would probably save more over the cost of the liability insurance charged by the rental company.
3. Sharing A Car
There is a movement that is sweeping across the world gaining popularity: Car sharing. It’s like car rental on steroids. A member schedules an hour or a day for a vehicle through their car-sharing network and they simply pick up the car and return it when the time is up. Many of these companies that do this automatically provide some level of insurance, but for the sake of protection, it would be wise for these members to invest in a non-owner liability policy.
4. Renting A Truck to Move
Whether it’s to the other side of town or across the country, renting a truck to move personal belongings is a great time to seek a non-owner policy. The driver is likely to not have much experience driving a bigger vehicle especially with tons of cargo. Mishaps are more likely to happen and having quality additional protection will be necessary. Most truck hauling rental companies won’t even rent to someone without a personal liability policy.
5. Planning to Buy a Car
For someone who has been without a vehicle and without liability insurance for a period of time, the cost of a traditional car insurance policy will be far more expensive. If someone is planning on buying a car in the next year or so, purchasing a non-owner auto policy may be a good option to establish insurance history so that when the purchase is made, the insurance is more affordable.
6. Requiring an SR-22
There are situations in which a driver has been penalized by the court system or their state’s motor vehicle department and had their license suspended or they were caught driving without insurance and have been required to file an SR-22 with their insurance. Even if the driver no longer owns a car, the state is still going to require the SR-22 for three continuous years or the license will remain in suspended status.
By purchasing a non-owner liability policy and requesting the SR-22 from the insurance company, the driver will fulfill the obligations for the filing. The filing is simply paperwork that the insurance company sends the state affirming coverage and is required to send notice if that policy should cancel for any reason. If there is a cancelation, the driver’s license would then be immediately suspended again and the driver would have to start all over with the three years of SR-22 filing.
7. Requiring an FR-44
An FR-44 is similar to an SR-22 except that it is specifically for residents of Virginia and Florida who have been convicted of a DUI/DWI. Not only do they have to have their insurance company file with the state, they also have to maintain liability limits for bodily injury of at least $100,000 each person, $300,000 each accident. Property damage liability requirements are typically $50,000. This makes the cost of insurance much higher with a policy that will already be costly with a DUI on record. However, it is meant to be a deterrent and reduce the amount of DUI that happens. A non-owner FR-44 insurance policy would be required if the driver no longer owns a vehicle.
There could be other reasons in which someone without car ownership would be wise to have a non-owner policy protecting him or her. Please also note, that a car that is already insured, does not mean you can go safe without having a non owner policy by yourself. If you feel you may have use or need one, contact a local agent, a direct insurance company, or go online to seek quotes.
Image: Flickr.
