Why You Need Car Insurance When You Don’t Own a Car
Happy National Car Insurance Day!
For today we went to our Personal Lines staff to see what questions our customers are asking and if we can easily answer them. Below you will find a common scenario, question and answer. Then we go into more details. Enjoy and remember, today is a great day to set up your annual insurance review.
Scenario: You recently decided to not own or use a car. You live within walking distance to work and can use a bus to get to the grocery store. You also want to live a healthier, more environment friendly life. You cancel your car insurance because you don’t own a car…it makes sense and saves you money. One day you need to go to a meeting in Cincinnati, OH and you ask to borrow a friends car. Before you leave, your friend asks, “Do you have insurance?”
Question: Do I need car insurance when I don’t own a car?
Answer: Absolutely! You might not need traditional car insurance but you do need non-owner car insurance. Non-owner car insurance provides liability coverage when renting or borrowing a car you do not own. It pays for injuries and property damage that could happen in the event of an accident. Also, it will show that you do not have any gaps in coverage. Gaps can negatively affect your premium because it appears “risky” to insurance providers.
Details About Non-Owner Car Insurance
- Non-Owner Insurance is the best option for people who borrow vehicles frequently, people who rent vehicles frequently, and people who primarily take public transportation but might occasionally use a car.
- Non-Owner Insurance does include liability and potentially medical coverage for yourself and uninsured/under-insured motorist insurance.
- Non-Owner Insurance does not include collision or comprehensive insurance. When renting a car, you can add this coverage from the rental company.
- Non-Owner Insurance gives you the ability to legally drive. It’s illegal to drive a car without insurance.
Cost of Non-Owner Car Insurance
- Because you don’t own a car, the cost for Non-Owner Insurance is typically lower than a standard liability insurance policy.
- Various items can impact the rate though. Factors such as age, driving record, where you live, and how often you plan to drive, can lower or raise costs.
We want our customers to be protected and understand what coverage they need. Recently our personal lines department has had calls about dropping insurance coverage due to the selling of a vehicle or accident that left their vehicle totaled. We will always recommend that instead of cancelling your insurance, to switch it to a Non-Owner plan. If you have any questions or concerns, do not hesitate to call. Our personal lines staff is ready to answer your questions! Call our Montgomery, OH office at 513.984.5255.