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Personal Perspective


By February 1, 2013No Comments

Say you operate a vehicle frequently, but don’t actually own one. Nonowners Auto Insurance is the product you’re looking for.

These policies generally provide Liability coverage only, which protects you if you’re at fault for any injuries or property damage suffered by another driver or pedestrian. Nonowners Auto usually does not include Comprehensive, Collision, Towing reimbursement, or Rental reimbursement coverages. In many cases, you won’t have to pay a deductible.

If you occasionally borrow the car of a friend or family member, the owner’s Auto policy will cover any accidents. However, a Nonowners Auto policy can still pay off in such situations; for example, if the owner has low Liability limits.

This coverage might make sense if you rent cars regularly. Insurance sold by a rental agency is often expensive — from $7 to $14 a day for a Liability policy.

However, bear in mind that Nonowners Auto insurance will not cover damages to a car you rent. For this reason, it often makes sense to purchase a Collision Damage Waiver — commonly known as a “loss damage waiver” — from the rental agency. Although this is technically not insurance, it will protect you from responsibility for damage to or theft of your rental. Some waivers also offer coverage from “loss of use” fees charged to renters while the car is being repaired. Waivers usually cost $9 to $20 per day.

For more information about Nonowners Auto coverage, please feel free to get in touch with us.