Car insurance for non owners are quite accessible, but they are not regularly mentioned. If you are like many people, you probably have never heard of car insurance policies for those who do not own a vehicle.
What is car insurance for non owners?
This variant of vehicle insurance is offered for those who do not possess a vehicle, but who regularly uses rented vehicles. They are usually less expensive than conventional owner’s insurance policies because the people that buy them don’t operate a vehicle daily. You will typically pay close to $200 to $300 for these insurance policies, nonetheless, the insurance company will still take your age, gender, driving record, and location into account to ascertain your premium amount.
Benefits you can gain from getting this kind of insurance
Offer protection even if you don’t possess or drive your own car
Several things can go wrong when you are operating a vehicle and even if you don’t privately own the vehicle, so it is essential that you are adequately covered. For example, if you were lent your friend’s car and you caused an accident, the other party could go after you personally for injuries and damages to their vehicle if these cannot be reimbursed satisfactorily by your buddy’s policy. This type of policy will not cover repairs to a rented vehicle. Instead, it functions principally as liability coverage for both bodily injury and property damage. Sometimes, insurance firms provide uninsured and underinsured injury coverage together with a non-owner’s policy.
Decrease fees when renting a car
Vehicle rental companies charge you a considerable amount of money for their insurance coverage. If you do not own a personal car, but rent frequently, this type of insurance can probably help you cut costs over time. Nevertheless, you will still must buy the collision damage waiver to pay for repairs to the rented vehicle if it was damaged while you were using it.
Continuous coverage for high-risk road users and non-owners
Gaps in your insurance history can cause insurers to consider that you are a high-risk driver and for this reason will bring up your premiums if you apply for a policy with them. Non-owner’s insurance can help you retain continuous coverage and thus avoid paying a lot to be covered. If you are regarded as a high-risk driver, this type of policy is a requirement to satisfy conditions to receive or restore your driver’s license, too.
The personal assets of an individual are the assets he has purchased with his hard-earned money and therefore it would be painful to part with them. Generally, personal assets of an individual are at risk when he is unfortunately involved in a law suit filed against him, due to say an accident that may have not occurred due to his fault. The legal expenses and the amount awarded to the injured person on the other side by the judge may exceed the liability insurance covered by your home, auto and other policies.
Now, what is this liability insurance? Well, it is a special kind of insurance policy of an individual that covers things like the legal defense representative, the medical bills of the person injured because of your fault, his rehabilitative treatment and the wages, he lost. It is during this kind of unwanted and unforeseen situations that the umbrella insurance extends its helping hand. To explain it further, say A happens to injure B in an accident due to his negligence. Say, the court awards the injured person three hundred thousand dollars; but, unfortunately the auto policy of A covers just two hundred thousand dollars. During such a situation, it is the umbrella insurance that will pay the rest of the amount, that is the additional one hundred thousand dollars, to B.
Back in the past, it was the well-to-do people, who considered purchasing umbrella policies. The scenario is changing now. Now, it is the common man who is more interested in going for umbrella insurance, in order to save his personal assets. The protection the umbrella insurance offers also extends help, when the liability on the individual’s other insurance policies stands exhausted. One can go for the umbrella insurance policy without having to bear huge costs. The added liability protection or the added coverage far exceeds the added cost.
Further, umbrella insurance is all the more beneficial to individuals’, who happen to receive huge amounts within no time, say by winning a lottery or the sort. This is because there are always several dishonest people around us always on the lookout to make money easily. There is every chance that a couple of them might file false law suits against you to grab away a portion of the wealth. Thus, it is always a wise decision to go for an umbrella insurance to protect your personal assets. Go for it.