If you rely on public transportation to get you to and from work and other destinations in your town or city, you may not need to own a car. However, many people who don’t own a car do end up driving a vehicle at some point, whether it’s a rental car or a car of a friend or colleague.

Since many states require all drivers to carry some type of car insurance when operating a vehicle, you may need to invest in a very basic insurance policy in case of a collision. Non-owner’s car insurance is designed to provide coverage for these types of drivers. Here’s what you need to know about getting non-owner’s car insurance:

What is Non-Owner’s Car Insurance?
Non-owner’s car insurance typically provides you with liability protection, and you may have additional coverage options depending on the insurance provider. There are usually no deductibles with non-owner’s car insurance, unless you live in a area that mandates uninsured or under-insured property damage coverage.

In most cases, non-owner’s car insurance offers the following types of coverage:

- Comprehensive
- Collision
- Towing reimbursement
- Rental reimbursement

The average non-owner’s car insurance policy costs approximately half of the standard insurance premium across the country. It also costs significantly less than the auto insurance programs offered by the major car rental providers. However, the price of non-owner’s car insurance will vary significantly by insurance provider, location and the level of liability coverage you choose. You may also be eligible for certain discounts based on your driving record or employer.

Non-owner’s car insurance claims are paid out after the insurance company reviews the details of the accident and assesses the vehicle for damages. Your car insurance provider will pay out an amount based on the car owner’s liability limit.

Reasons to Get Non-Owner’s Car Insurance
If you drive someone else’s vehicle on a regular basis because you don’t own a car, or if you plan to drive a rental vehicle for a certain period of time, you may be a good candidate for non-owner’s car insurance. Even though many car rental companies offer insurance coverage on a temporary basis, this can be a costly investment, and your costs may end up being powerful more than a non-owner’s car insurance policy in the long-run.

Non-owner’s car insurance offers several benefits for individuals who want to drive or rent a car when going on long trips, or for travelers who find themselves renting or borrowing a car on a regular basis. You can protect yourself from financial burdens and costs by carrying this type of insurance and can shop for the best rate by obtaining a quote from multiple auto insurance providers.

Sources:
http://www.insurance.com/auto-insurance/faq/insurance-for-non-car-owner.aspx
http://www.insure.com/car-insurance/non-owners-policy.html