Non owner insurance is quite often misunderstood by consumers. Many believe that a non owner insurance policy will cover you for any vehicle that you may drive, which is not true and can lead to uncovered accidents. In fact, there are many limitations to this type of policy which anyone purchasing it should be aware of.
When coverage does apply with this type of policy, no Comprehensive or Collision coverage applies for any vehicle you drive. In other words, it does not repair damages for the vehicle you are driving. It only provides liability coverage which is bodily injury coverage for others and property damage (coverage to other vehicles) up to the policy limits.
Non owner policies were designed for a person that does not own any vehicles and does not have regular access to a particular vehicle, including work related vehicles. Additionally, you cannot add any drivers to this type of policy. Only the named insured (the person who was issued the policy) will have coverage.
Usually, coverage is not provided for any of the following:
If you own a vehicle, non owner insurance is not the type of insurance you should purchase. It only protects you when you are driving an automobile in which you have no ownership of any kind and is not regularly available or work related. Usually, non owner insurance coverage applies an excess to any other insurance policy that may be in effect.
It is also important to know that if you acquire a vehicle after purchasing a non owner policy, you must add that vehicle immediately after acquisition and pay any additional premium if applicable. Many people will purchase a vehicle and forget to add it to their policy thinking that the vehicle is insured.
You may be thinking to yourself, “That’s very limited coverage, what situations will it cover?”
Let’s say you borrow your friend’s vehicle to go to the store and it is not in your name, you do not regularly use it, he does not live with you, it is a private passenger vehicle and you are not using it for work related purposes. Most likely you will be covered. Quite limited right? Keep all the above in mind if you need to purchase a non owner insurance policy.
If you have a vehicle that you regularly drive but is not in your name, you can still purchase a regular auto insurance policy under your name. OnlineAutoInsurance.com works with multiple auto insurance companies that will allow you to insure vehicles that are not in your name. Feel free to get your free car insurance quotes. You can get multiple rates from various companies with one simple process.
