Non-Owner Car Insurance
Non-Owner Car Insurance Policy, as the name defines, a policy purchased by a driver to secure the liabilities and have coverage on rented or borrowed car. The policy also takes into consideration people who rent a car just for a couple of hours for the sake of renewing the driver’s license.
The coverage by non-owner car insurance policy:
• Bodily Injury Coverage: This coverage is essential because if in case the driver of a non-owner car causes accidental injuries to someone, the driver has to pay the cost of medical care whether short term or long term.
• Property Damage Liability: This coverage plays its role when the rented or borrowed car is involved in an accident and causes damage to someone else’s property. In this case, the driver of the non-owner vehicle has to pay for the repair or replacement cost.
Cost of Non-Owner Car Insurance
Non-owner car insurance is comparatively lower than the traditional insurance policy purchased for an owned car. All the reputed insurance companies take a record of the driving background, verify your credit report, and take research on your frequency of claims on damage and the number of accidents you have come across in the previous years. Based on this study, the insurance company decides the cost of the premium. If you are at a higher risk, the cost of the policy is high. If you stay on the lower side during the analysis done by the insurance company, the value of the policy is low.
The Need for Non-Owner Car Insurance
Though this type of coverage plays an integral role in supporting the physical damage or property damage done by a car accident, not everyone requires the non-owner car insurance. The people who should go for this kind of coverage and who are in need are:
• People who drive a borrowed car: The owners of the vehicles usually buy an insurance policy to cover all the damages. However, if the driver who has hired the vehicle does any collision or accident, he or she is liable to pay for the damage to any property or bodily injury.
• People who drive a rental car: These days’ rental vehicles or self-driven vehicles have become a trend. In such a scenario if a collision occurs and the damage caused is beyond the predetermined amount of insurance, the driver is liable to pay for the excess loss.
• People who are about to buy a new car: Some people have sold their old car and are waiting for something better to buy a brand new car. This time gap between two vehicles is vital for the purchase of insurance to ensure that any car you borrow, rent or share during the period, the insurance covers the policy.
• People who drive a company car: Some employees often get a car from the company they are working in. Though the company insures the car if in case an accident occurs, then the employee driving the car has to pay for the cost of damage.
Benefits of Non-Owner Car Insurance
The significant advantages of buying a non-owner car insurance policy are:
• Protecting your liability and assets is very important whether you own a car or not. The plan helps you pay for the extra cost incurring the damage to the vehicle or the physical damage. Driving is an art in itself, but everything is never perfect. Accidents may take place, collisions may occur, and staying prepared for such unplanned situation is most important.
• Saving right amount of money on a rental car is an essential advantage of non-owner car insurance. This type covers various liabilities for a rental car.
• Maintaining financial responsibility as a driver is another key benefit of non-owner car insurance. In this scenario, you are safe for any excess damage during the tenure of a non-owned car, and when you own a car in future, the premium that you are liable to pay is comparatively lower than the actual cost of the policy.