Understanding Non-Owners Car Insurance

Non-owners car insurance is a policy you purchase when you do not own a vehicle. It provides car insurance for an individual who wants coverage when driving other’s vehicles. In most cases, the only coverage available on a non-owners’ policy is bodily injury liability, property damage liability, medical payments, and uninsured motorist. Non-owner policies will not include comprehensive nor collision coverage. The coverage is designed to pay for damage to the owned vehicle for perils such as theft, collision, fire and so forth. Since the policy doesn’t cover owned vehicles, these coverage cannot be purchased.

Coverage does not extend to household members and only applies to the person listed on the declarations page. In the event of an accident, the non-owner policy is designed to pay after the car policy coverage is exhausted. Therefore, it is designed to be a secondary policy. For these reasons, a non-owner policy is not designed for teenagers that want to be covered when driving their parents’ car. If an accident occurs and it is the teenager’s fault, the parent’s primary policy will not provide coverage, as the teenager is not covered. The non-owner policy only provides coverage for the teen. Therefore, the parent’s interests are not protected in this scenario.

Non owner policies were designed for a person that does not own any vehicle and does not have regular access to a particular vehicle, including work related vehicles. Additionally, you cannot add any drivers to this type of policy. Only the named insured (the person who was issued the policy) will have coverage.

Usually, coverage is not provided for any of the following:

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Should you purchase Personal or Commercial Auto?

If your business owns a vehicle then a personal auto insurance coverage may not offer you the protections that you need. Instead, commercial auto insurance might be the better choice, limiting your liability and offering more comprehensive coverage.

Difference between Commercial and Personal Auto Insurance

As you can probably tell, commercial auto insurance and personal auto insurance differ because one is meant to cover your commercial (or business) automobile or fleet and the other your personal automobile. But the difference is actually more than that. Personal auto insurance covers insurable events like the bodily injury of you, your passenger, or another driver. It also covers collision costs, uninsured motorist claims, theft of your personal assets and property damage liability when caused by your personal vehicle. Commercial auto insurance has a different set of liabilities to cover. For example, let’s say that the passenger in your car is not just a friend or family member along for a ride somewhere—as it would be in a personal vehicle—but a client that is paying you to drive them to a certain location. Or, let’s say that your vehicle is stolen not just with your personal DVD’s and laptop in it, but expensive business equipment owned by your client that you were meant to transport somewhere. In both of these examples, not only are the cost of the missing goods or injuries going to be part of the claim, but the loss of use and loss of business caused by the interruption by the insurable incident and subsequent repair of your car could play a major role in the impact of the claim. Additionally, the liability you as the business owner carry as the responsible party to your client’s goods is also much greater than the personal liability involved in losing a few DVDs.


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