If you do not have a car should you still carry car insurance? Most states require individuals to maintain auto insurance if they are a driver. To maintain your license, you may need to show proof of coverage. Even in states that do not require this, you should maintain some coverage for your needs. A non-owner car insurance policy can do that for you. Here is how it works and when to use it.
What Does Non-Owner Auto Insurance Cover? 
Policies differ between agencies. However, most non-owner car insurance policies provide liability coverage for the named driver. This means it helps cover any losses you cause when driving a vehicle.
Perhaps you rent a vehicle for a weekend. Or, you may borrow a friend’s vehicle. As liability insurance, coverage protects only the other party, not you. That is, it does not provide medical coverage for you if you suffer an injury. It can cover damage you cause to others or their property, though.
Also note, this type of coverage covers the third party. That is, it does not apply to you or the vehicle you are driving. Your friend’s borrowed car does not have coverage under this policy. In most cases, the owner of the vehicle should have collision coverage to help with their losses.
Who Should Consider Non-Owner Coverage?
Many people fit the bill. A common instance is in situations where an individual wants to maintain a driver’s license but does not drive often. For example, a college student that does not own a vehicle but drives when home on break, could benefit here. Here are a few other scenarios.
- You rent vehicles frequently. Some drivers find it is less expensive to purchase a non-owner policy than it is to pay for rental car insurance. However, there may be some limits here. Most policies do not cover damage to the car you drive.
- You borrow another person’s vehicle frequently. In some situations, you may want to purchase this coverage if you borrow a car frequently but do not own it.
- You have a DUI or serious violation. In this case, you may need an SR-22 or FR-44, a form proving you have coverage. If you do not own a car and need this coverage, a non-owner car insurance policy might work.
Speak to your agent about how you may benefit from this type of car insurance. For many, it is exactly the right level of protection.