In the US, you need some form of insurance to drive legally, even if you drive a car that you do not own. For such drivers, non-owner auto insurance policy can be the perfect solution.

Car insurance for non-owners is different from the standard insurance coverage as it usually only covers liability. Most car insurance non owner policies do not provide comprehensive, medical, or collision coverage, as well as roadside assistance. You can buy them separately at additional costs.

As the name suggests, car insurance for non-owners is for people who do not own a car and do not have regular access to vehicles. Also, people living in those urban areas where owning a vehicle is not crucial can benefit from such insurance coverage. Remember, insurance for non car owners covers only one driver – the single policy holder. It does not allow addition of additional drivers such as spouse or other family members. You cannot buy insurance for non car owners if a car is registered in your name or you own a car which is not
registered to you. Other instances that prevent you from buying car insurance non owner include cars owned by people who live with you, cars that are loaned to you, or cars that you have regular access to.

In the instance you get into an accident while driving a borrowed vehicle, the owner’s insurance coverage will cover the damages within the prescribed limits. You can face legal action from the owner of the car unless you have car insurance for non-owners.

A non-owner auto insurance policy can help you save a lot of money in the long run as most are available for as less as a couple of hundred dollars a year. Insurance coverage is also available with many rent-a-car companies, but they turn out to be expensive at around $100 per day.

If you are considering buying insurance for non car owners, make sure that you get the liability coverage and loss damage waiver from your policy. With liability coverage you will be protected from legal lawsuits in the instance you damage other vehicles, people, or property while driving a car that you didn’t own. The loss damage waiver will protect you in case the borrowed car gets stolen while under your care. In this manner, loss damage waiver is like comprehensive coverage. This type of coverage often comes complimentary with your credit card.