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Non-owners Insurance Can Save You Money on Long Term Rentals


Sometimes it does not make sense to continue to pay for standard car insurance coverage. When you are moving to a new state, you may need to have a break in normal coverage while you search for a new car in the new state. Unfortunately, a break in coverage can cause your next car insurance policy to be more expensive. You also need to maintain at least a minimum level of insurance in order to continue to drive wherever you are in the United States.

If you choose to rent a car, the rental company will offer comprehensive insurance for a certain fee each day you drive the car. Those fees can add up very quickly. If you borrow a friend's car, you will want to have some sort of coverage to protect you from the costs that can be associated with an accident that your friend's policy may not cover. Non-owners insurance can provide the coverage you need for these short gaps that do not fit into your standard car insurance policy.

Costs of Daily Coverage through Rental Company

The insurance that rental companies offer on each of their rental cars includes the most comprehensive coverage possible. Unfortunately, it is also the most expensive way to insure a rental car. Most companies charge between $35 and $45 per day on average. If you need the car for more than a few days, you could pay hundreds of dollars just for the insurance. Most drivers do not need such comprehensive coverage for their rental cars. It makes better sense to find an alternative whenever possible.

Non-Owners Coverage Ideal for Longer Rentals

If you plan to keep your rental car for a week or longer, you may find that non-owners insurance is the more affordable way to go. The coverage will protect your rental car for up to 6 months at a time while you relocate or search for a new car. Non-owners insurance coverage is for drivers who do not own a vehicle or regularly borrow a vehicle from someone else. The rates are a fraction of the cost of rental company rates. A quick online quote check will give you some good information about the availability of non-owners car insurance policies in your area.

Can Cover Daily Driving

Some drivers worry that there is a limit to the amount of driving covered through a non-owners insurance policy. Most insurance companies provide policies that cover daily driving of the rented or borrowed car, without any mileage regulations. Check with your insurance agent for specific details about your non-owners coverage. In general, you should be able to drive the car within the guidelines of the rental agreement that you signed without any penalty from your non-owners car insurance policy.

Less Expensive Than Standard Coverage

Compared to standard car insurance, non-owners insurance will save you approximately 50% on your premiums. If you are in a position to choose whether to continue your standard coverage while you are driving the rental car, you might prefer to use a non-owners policy instead of paying the full ownership insurance fees.

It is better to have a lapse in your standard coverage than to pay hundreds of dollars for insurance that might not be necessary while you are driving a rental. Some standard insurance policies may not provide coverage for damages to rental cars. It is important to check with your agent about your options when you plan to drive a rental car for an extended period.

Liability Coverage Keeps You Legal

The main benefit of carrying non-owners insurance while you are driving a rental or a borrowed car is that it provides you with the minimum legally required insurance for the state you are driving in. Non-owners insurance makes sure that you are always driving legally, no matter what the ownership status of your vehicle is. The penalties for driving a car without the legal minimum insurance can be steep in most states, including fines and the suspension of your driver's license in some cases.

Costs Vary Depending on Location and Driving History

Of course, non-owners car insurance policies can vary in cost depending on the same factors that traditional car insurance premiums are based on. Your driving record plays a large role in determining how much you will pay for non-owners car insurance.

The rate is also variable based on where you plan to drive the car. Each state has a different minimum requirement for car insurance coverage. If you are in a state that has a higher minimum requirement, you will pay more for your non-owners insurance. Non-owners policies are still far less expensive than standard policies, which also rise and fall based on your record and the state you are driving in.

Special Restrictions May Apply

Although the amount of driving you do while you carry non-owners insurance is not usually important, there are some other restrictions that can apply to this type of insurance. The most common restriction is on your ability to own and insure your own vehicle while you receive coverage on a non-owners policy. Most insurance companies state that your non-owners policy is void if you become the owner of a vehicle for which you can purchase standard insurance. Check with your local agent for more information about specific restrictions that can apply to your policy.

Non-Owners Insurance for Borrowed Vehicles

You may be able to purchase non-owners insurance as a safety net if you regularly drive vehicles that are owned by other people. When you borrow a friend's car, your friend's insurance will be the first to cover any damages that may occur during a collision. Your non-owners insurance coverage would cover any expenses that are beyond the scope of your friend's policy. Non-owners insurance generally does not include more than the minimum liability coverage required by the state, but it is usually enough coverage to protect you from excessive costs when you have an accident in a borrowed vehicle.