What Is Non Owned Auto Insurance?

By Mike Anderson Posted in Car Insurance News



We all understand that we have to insure our own cars. However, can you get insurance for car that you do not own, for instance, a car on hire? Sure you can! When you hire a car, it is prudent to take insurance cover for it to cover yourself against unforeseen accidents that may occur when the car is in your possession. This kind of insurance is known as non-owned auto insurance.

A non-owned car insurance policy is a good option to take rather than buying liability coverage from the rental firm. Taking coverage of about $300 would be ideal and is even cheaper especially if you are hiring cars frequently. Accidents occur unexpectedly and having a non-owned auto insurance cover will protect you from paying for the damages caused to the injured persons. There are many benefits of this type of cover.

What Is Covered

The non-owned vehicle policy provides cover against accidents in which another person’s car is damaged, or people in the car or on the road are injured as a result of the accident. Moreover, you will also benefit from medical expenses coverage, under-insured coverage, as well as uninsured coverage on you or the passengers in the car.

One downside of non-owned auto insurance policy is that it does not provide collision coverage. Therefore, ensure that you take collision coverage from the rental firm when getting your car. Alternatively, check with your credit card company whether they provide this coverage. Most credit card companies provide collision coverage if you use their card to pay for the rental car. However, ensure you read the firm’s terms and conditions before opting for their collision coverage. Some firms may offer you collision coverage but incorporate other hidden charges with it. This is why it is important to carefully read their terms.

Related posts:

  1. What Car Insurance Companies Do Not Base Premium On Credit?
  2. How Does Encompass Auto Insurance Compare With Its Competitors?
  3. How Do I Buy A Car Insurance Policy If I’m Going Out Of The Country?
  4. Do I Need Car Insurance If I Don’t Own A Car But Drive Someone Else’s?
  5. Why Is A Credit Report Important For Young Driver Car Insurance?






Leave a Reply