With so much attention of fuel prices over the last few years, most of us have been on the lookout for more economical ways of getting around. Car pooling is back in vogue as is taking the bus.  Car sharing clubs, where people who only occasionally need a car have access to one without the overhead of ownership, are also flourishing.

So even if you don’t own a vehicle yourself, there are still myriad reasons why you should buy car insurance.  Otherwise, what happens if you were to cause an accident while driving a friend’s car?  Or while renting a car-sharing vehicle?  Who would pay for the damages rendered?

For this need, insurers offer auto insurance policies called non-owner auto insurance coverage.  Such coverage provides protection for named individuals when they use vehicles not ordinarily available to them, such as a friend’s car or rental. These policies cover the driver for:

  • His liability for injuries or damage caused to others,
  • Medical payments for relatively minor injuries the insured driver suffers while using the borrowed car, and
  • Other major injuries suffered in accidents with uninsured or underinsured motorists.

It should be noted that this policy will pay only after the vehicle owner’s liability insurance is exhausted. It also does not insure other drivers unless the policy specifically lists their names. And lastly, this insurance provides no coverage for collision or other types of physical damage. Coverage is usually very affordable due to these limitations.

Driving a motor vehicle is always risky, regardless of whether the driver owns, rents or borrows the car. Next to medical expenses, car accidents, especially where the driver lacks sufficient insurance, can be financially devastating. Anyone who plans to drive at some point should make sure they have proper and adequate insurance before getting behind the wheel. And make sure the coverage you have is at least meeting your state’s auto insurance laws.

Filed Under Car insurance
Tags: , , , ,