Cheap Rate Non Owner Auto Liability Insurance Plans - What Is Covered And Excluded For Rental Car Drivers

What is non owner car insurance?

Non owner auto liability insurance is a collective term referring to all the possible policies available for people who rent automobiles or borrow vehicles from friends and colleagues. With the expensive cost of fuel these days, many individuals cannot afford vehicle ownership and are taking convenient public transportation to work or school. When they really need to drive around for 1 to 2 days, they simply borrow a car from friends or cheaply rent one from a carpool or local car rental.

Even when you do not own a car, you still need to have the legally required minimum auto liability coverage when ever you drive on the roads. That is where a non owner auto liability insurance policy comes in. Most US states require that a driver must buy at least sufficient liability only car insurance to cover any person they may injure and any property they may damage in the event of a road accident.

For those of us who only drive occasionally say once a month and do not possess a car, there is no need to buy a full car insurance policy. A cheap non owner car coverage provides the state mandated liability insurance on the driver's name (you) and financially protects and cover you in the event of:

1. Bodily injury liability coverage
2. Property damage liability coverage
3. Uninsured or /underinsured motorist protection
4. Personal injury protection
5. Medical payments coverage
6. Legal fees where applicable

You will need to pay for the following excluded items if you like to have more complete coverage, which include:

1. Comprehensive damage
2. Collision damage
3. Car breakdown towing reimbursement
4. Replacement car rental reimbursement

Compared to rental car insurance that you can purchase at your local vehicle rental companies, buying a non owner auto insurance plan can be more cost effective if you need to drive on and off more than a few times every year. Depending on the amount of optional coverage you add, a non car owner liability insurance plan cost around $300 to $500 per annum. This is also determined by the state you live in, your driving history, the risk group of the vehicle you intend to drive and other guidelines from the insurance underwriters.

Even if you drive infrequently, it is still better to play safe and buy auto liability insurance that protects you from suffering any heavy financial losses and legal penalties in the event that you are sued by the other parties involved in the accident for causing them hurt and property losses. As the name dollar a day car insurance goes, it costs very little to pay for auto coverage on top of the rental fees for your rented vehicle.

Note that these basic non owner auto liability insurance plans typically do not include any medical coverage for you in case you are injured and incurs medical expenses. Collision and comprehensive coverage on your vehicle is not included as well because these can be claimed directly from the car owner's policy which is either your friend or the vehicle rental company.

Common Questions On Non owner Auto Liability Insurance

When I borrow a car, is owner's insurance plan sufficient to cover me?
By right, the car owner whose vehicle you are borrowing would have already bought at least the minimum car insurance cover required by the state laws. However, that itself may not be sufficient to pay for all the damage claims that can be made against you in the event that you cause serious property damage or injure someone else. The original car owner's liability insurance policy will only pay out to its maximum limit and the remaining compensation must be borne by you, the driver at fault and not the car owner. While property damages are somehow limited, expenses for the victims' hospitalization and permanent disabilities etc can end up costing you hundreds of thousands of dollars.

Remember that a lot of car accident personal injury claims usually exceeds the amount of car owner's liability coverage bought. You as the at fault driver can face serious financial strain to make up for the shortfall in damages compensation.

Is the free insurance coverage on my credit card enough for driving a rental vehicle?
Most of the time, the personal accident insurance coverage that comes free with some credit cards only protect yourself and not the people or property damaged by you. You are still liable to pay for the compensation claims filed by them.

Does the rental car agency offer free accident insurance coverage?
This depends on the specific vehicle rental agency you go to. Some may or may not bundle auto liability coverage together with the rental package, or may only provide a small limited claims coverage. Anyway, if you often rent cars for more than 14 days per year, you are better off buying non owner auto liability insurance since it will work out to be cheaper and yet offer much higher claim limits.