This may seem like a silly question, but it is actually a necessary one. In fact, there are a number of situations in which an individual, even without owning a vehicle, may be required to, or at least benefit from, having an auto-insurance policy.
Of course, most of you are probably wondering if that is even possible. Surprisingly, the answer is yes: you can get car insurance without a vehicle. This is known as “Non-Owner Auto Insurance”.
What Is Non-Owner Auto Insurance?
A non-owner auto insurance policy is a special policy designed for individuals who drive but do not own their own vehicles. Typically, this type of policy is meant to provide coverage when the insured individual is renting a vehicle or borrowing that of a family member or friend.
These policies offer specific coverage – the first being bodily injury coverage and the second being property damage liability coverage.
When Is It Necessary?
Of course, just because non-owner auto insurance is possible, it may not be necessary. There are circumstances in which having this type of policy will be beneficial (or even required), but there are also situations where it is not worth the cost.
A few circumstances where you may want (or need) non-owner auto insurance are:
If you travel often, whether for work or leisure, and you regularly use rental vehicles, a non-owner policy is probably a good idea.
Yes, the rental companies offer their own insurance add-ons when you rent the vehicle, but they typically aren’t full coverage. These policies usually cover the vehicle – but not necessarily you. By having a non-owner policy you have coverage for the vehicle over and above what the rental company provides as well as having protection for yourself in the event of personal injury or property damage.
The same idea goes for if you frequently drive the vehicle of someone you know. Perhaps you just got your license and you are driving your parents or older siblings vehicles. Maybe your vehicle broke down and you are borrowing the vehicle of a friend until you are able to replace or repair your own.
Whichever the situation, their insurance is good but is not enough to cover you in all potential situations.
If you have had your drivers’ license revoked due to traffic infractions or even criminal convictions, such as a DUI, you may need non-owners insurance.
This is because in order to have your license reinstated, you will need to file a vehicle liability document, typically an SR-22 or FR44. This document requires proof that you are covered under some form of auto insurance policy, even if you don’t own a car.
Speak With Your Insurance Provider Today
If you are still unsure of whether you need this type of insurance policy or not, you are looking to purchase a policy, or you already have one but would like clarification on your coverage, the best thing you can do is to contact your broker.