Reader’s Question:
I’ve recently sold my car here in Burbank, California, and decided to cancel my existing car insurance policy, my current insurance company suggested I switch to a non owners auto insurance policy with them instead, since I mentioned I’ll probably be borrowing my sister’s car more often. Do you recommend that I do?
Tyler
Burbank, CA
The necessity to get a Non Owner’s Auto Insurance depends on a few factors. If you live in a city where there is a dependable Mass Transportation System, such as buses or trains and you seldom see yourself borrowing someone else’s car then it may be cheaper for you to find car rentals there in Burbank, California that also offers same-day insurance coverage. There are benefits, however, of getting yourself a non owners auto insurance policy if in the long term you will be using someone else’s car or find yourself renting cars more frequently.
Having non-owners car insurance is a very responsible thing to do since you are assuring yourself and the party lending you the vehicle that, in case of an accident, both are still covered. A non-owners auto insurance policy, however, could not take precedence over the car owner’s insurance policy. This means that in the event of such an accident, the car owners insurance will take effect first and in case their coverage is not enough for the damages then a non-owners insurance coverage could take care of the rest.
This can actually work to your advantage, since non-owner policies cost significantly less than normal owners auto insurance. Non-owner auto insurance also typically covers the ff: Liability damages, medical payments coverage, as well as uninsured or under insured motorists coverage. As you can tell, there is a lot to gain by getting yourself covered under a non-owners car policy even if you don’t own a car.