Considering the cost of a car Insurance premium, you might think it smart to ditch  car insurance altogether if you don’t own a car. If you’ve already had car insurance, it might also seem smart to let it go if you no longer own a car. But is it really your best option?

To be fair, many are not aware they can carry car insurance even at times when they don’t own a car. But if for any reason you’ll be driving a car, whether it’s one you’ve borrowed or a rental vehicle, it’s important that you have some form of coverage. In fact, there’s only a few situations where car insurance is of no use to you.

Whether you’ve just sold your car and plan to use public transportation for the time being, or you’ve got no car and no plans of getting one anytime soon, a car Insurance Policy could still save you a lot in the long run if you will be borrowing a friend’s car or making use of rental cars often. How?

Non-Owner Car Insurance Policy

A non-owner auto insurance policy is particularly provided for those who do not own a vehicle. It covers you for liability when needed.

Unlike your regular auto insurance policy, this policy covers only one driver rather than multiple drivers. Likewise, it does not generally provide any coverage for medical or physical damages, although it is possible to find some form of medical coverage under certain carriers.

How do you benefit from a non-owner car insurance policy?

Despite its limitations, a non-owner car insurance policy can potentially save you excessive costs in different scenarios.

Liability Protection

Even the best of drivers can get involved in an accident every once in a while. This is because a whole lot of things can potentially go wrong while driving.

A non-owner auto insurance policy would provide you with liability protection even when you are not driving your own car. If you have borrowed a friend’s vehicle and caused an accident, this insurance policy would kick in where your friends’ minimum liability stops. This means you would be able to cover any excess damages which your friends’ minimum liability cannot cover.

Rental Car Savings

Getting a rental car without any insurance coverage spikes your charges by a lot. This is because your fees are going to include insurance coverage provided by the rental company.

A non-owner auto insurance policy will reduce your fees whenever you have to rent a car as liability protection will be covered. While you will still need to purchase a collision damage waiver for coverage of physical damages, you already have liability covered for the rental car, and will ultimately spend less.

Keep Insurance Rates Down

Going without insurance coverage for more than 30 days could see your insurance premium skyrocket by more than double or even triple the standard rates. Even then, fewer insurance carriers will be willing to offer you coverage.

This means you need to have an insurance policy to obtain reasonable insurance premiums, even when you currently don’t own a car.

Paying a premium on a non-owner’s auto insurance can give you that coverage for several months until you decide to buy a car. This will indicate to any potential carrier that you are financially responsible even as a driver without a personal vehicle, keeping your rates from going over the roof whenever you’re ready for your purchase.

With most insurance companies offering both policies you can always step down to a non-owner policy when you don’t have a car and step back up when you do.

Cheap Option

A non-owner car insurance policy can be as much as 50% less than a regular auto insurance policy – though this is fairly rare. In most cases, you can expect to get 5 – 15% off of your standard car insurance policy. The eventual cost would depend on your age, how often you plan on driving, and your carrier.

Considering its importance in keeping you covered and reducing future costs, a non-owner’s auto insurance policy is a cost saver.

Protection As A Passenger

If you are riding as a passenger in a car that is not covered by any insurance policy, you will still be covered in the case of an accident. Should your vehicle collide with another, you will have the protection of your policy. If the other vehicle is the cause of the collision, but has no insurance coverage, your insurance can also kick in.

A non-owner car insurance policy might not cover any physical damages, and might offer only limited medical coverage, but it is still a good option for drivers who do not own a personal vehicle.