Auto Insurance -- For Non Car Owners?

Why should anyone who doesn't own a vehicle even bother about owning a car insurance policy? Good question! A car insurance policy is a smart even if you don't have a car if you fall into any of the situations I will discuss shortly in this article.

Since you live in an advanced cities with highly efficient mass transit networks, you may not really need to own a vehicle for your daily movement. However, for some vacations and picnics, you will need one. And what do you do? You go to a car rental company.

These rental companies sell insurance if you want to cover your rent period. A non-owner auto insurance policy is, however, cheaper for you on the long run if you hire vehicles often. You will not have to be buying short term insurance covers from rental companies.

Another reason will become apparent if you intend to borrow a vehicle. Everyone will feel more comfortable realising thier car to you if they know you are so thoughtful as to even get a auto insurance policy. Doesn't the gesture of getting a non-owner auto insurance policy show you such a person is very thoughtful? And, people are a lot more comfortable dealing with thoughtful people.

Now, you need to know something about a non-owner auto insurance policy. Your non-owner's policy can't override the auto owners policy. It kicks in only if the vehicle owner's policy's liability limit can't cover the damages caused. I think an example will help you understand better...

Imagine that you borrowed a vehicle and had an accident where you caused a damage of $27,000. Your non-owner's policy won't be touched if the car owner's liability limit is thirty thousand dollars. This will not be the case if his/her liability limit were to be half the money. In such case your non-owner's policy will come into effect to cover the deficit.

It is good that you know that irrespective of the kind of policy you want to buy, you can make huge savings by capitalizing on the disparity in auto insurance rates. This can save you many hundred dollars. Moreover, it's very ethical -- No fake deals here...