In the USA you must have car insurance to drive a car even if you don’t own one. In the normal realm of things a person buys a car and then insures it for themselves. This is fine and dandy and works well for the majority of people. There are, however, circumstances when you might not want to own a car because for the majority of time it wouldn't be much use to you and therefore a waste of investment. In this case you might want to drive a friend or relatives car on the odd occasion. In this case you still have to be insured. This is where non owner’s auto insurance comes in. It is of great use for borrowing a car or even if you want to rent a car. You may find that a borrowed car will be covered to a certain extent by the actual car owner. Although this maybe true the level of cover is rather poor and you will leave yourself open to claims from both the owner of the car and any person that has been affected by your driving.
Non owners auto insurance comes in various levels of cover. The very basic level consists of just ‘liability’ coverage. This will only cover you for the costs to other people and vehicles if you are involved in an accident. You need to opt in for other coverage and this will of course cost you more money. You should also make sure you are covered in case the vehicle is stolen. This is called a ‘loss damage waiver.’
This type of insurance won’t cover the car if you actually own it or if it is a car you don’t own but have regular use of it. It really is just for one off occasions. It also isn't the type of insurance that your wife needs to drive your own car. In this case you would simply add your wife to your existing policy. Another important factor to understand is that the non owner insurance only covers the policy holder so you couldn’t allow your wife to drive the borrowed or rented car.
A policy of this kind is of great benefit if you find yourself having to rent cars quite often. This is because the rental companies will charge you a large amount of money for just a few days of insurance to rent a car. This typically would be the same amount that you would pay out for a whole year of non owners auto insurance
If you have non owners car insurance and then you buy your own car you will have to change your policy. However, you may find that you can transfer the remaining time or money from the existing policy to your new policy if you use the same company.
You certainly shouldn't get this type of insurance if you are thinking that it will be a short cut to getting insurance in the normal way. There are a lot of people who have bought this type of insurance for the wrong reasons and as a result a lot of claims have been denied. This usually comes about because they are using a householder's vehicle. This description includes any body who is living under the same roof.
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