Creating the move to a vehicle-cost-free life implies a welcome end to costly gas, repairs and maintenance.


But when it comes to vehicle insurance, you shouldn’t rush to drop your coverage totally. In several scenarios, it is wise to stay insured with a non-owner auto policy.


Find out the basics details about non-owner’s insurance to discover out if this coverage is appropriate for you.


What is non-owner insurance coverage?


Even although most owners insure their autos, this does not mean you are covered if you borrow a automobile. Non-owner auto insurance protects these who drive vehicles they do not own by providing liability coverage in case they’re at fault in an accident. These policies are written per individual, rather than per auto, and cover the policyholder in borrowed automobiles. In addition to liability insurance coverage, some non-owner policies also cover catastrophic car harm, theft and fire.


Be aware that non-owner policies have some limitations. They don’t contain collision coverage, and particular operate-use situations are excluded. Additionally, this type of policy will not cover you if you’re driving a vehicle owned by you or a member of your household.


Why obtain non-owner coverage?


Non-owner insurance coverage makes sense if you haven’t provided up driving completely even though you don’t own a car. Whether or not you have to drive your boss’s truck to run errands, or just sometimes borrow a vehicle from a pal or family members member, a single accident could bring economic ruin without liability insurance.


Non-owner insurance also applies to rental vehicles, so although you will still have to buy the collision damage waiver, you won’t need to buy pricey liability insurance every single time you rent.


An additional crucial purpose to acquire non-owner coverage is to preserve your preferred driver insurance coverage status. A gap in insurance coverage coverage is typically viewed as a lack of prior coverage, which may automatically classify you as high-risk. If you go with out insurance coverage and later decide to buy a automobile, you could finish up paying high-risk insurance prices even with a best driving record.


Based on where you reside, if your driving record is poor and you don’t personal a car, you may possibly not have a option about buying this coverage. For example, according to Virginia law, drivers who don’t own vehicles but would like to have their licenses reinstated soon after certain severe convictions such as a DUI should carry a non-owner policy.


Is non-owner coverage expensive?


As with all auto policies, premium rates are calculated primarily based on each and every individual’s driving record. Thankfully, non-owner insurance coverage tends to be very affordable all round. Rates might be as low as $ 250 for 6 months or even one year for those with the safest driving histories. A problematic driving record means higher prices, but even these who have to purchase the mandated Virginia coverage can count on to spend about $ 600 for 6 months.


As extended as you nevertheless drive sometimes, liability insurance coverage is vital. Luckily, obtaining a non-owner policy is effortless. Almost all insurers offer this coverage, even even though it is not typically advertised. Before choosing your policy, let your agent know if you do any driving on the job to locate out no matter whether you may well require additional coverage. When you have the proper insurance coverage, you will rest straightforward knowing your liability protection will stay with you no matter what whose vehicle you drive.


Lady in vehicle photo via Shutterstock.