Reader’s Question:
I live in Manhattan New York and rely on public transportation, but I occasionally borrow or rent a car for trips to the city. Should I have an auto insurance policy?
Erin
Manhattan, NY
For people like you who drive occasionally but don’t have their own car, you may consider getting a non owners insurance policy. Many insurance companies offer non owners insurance policies that typically include liability, medical payments, and uninsured/underinsured motorist coverages. Generally, this kind of policy does not include comprehensive, collision, towing reimbursement, or rental reimbursement coverage.
If you buy the limited coverage offered by car rental companies, you can get approximately the same coverage. However, buying a non owners policy is usually more cost effective if you rent a car for more than say, 10 days per year. Depending on factors like where you live, your driving record, and various other factors, a typical non owners policy will cost from $300 to $500 per year.
In addition, a non owners policy provides coverage for any car you drive, not just rental cars. If you get into an accident with a borrowed car from a friend, your friend’s insurance would kick in first. But if the accident was your fault and the damage to the other driver’s property was in excess to the liability limits on your friend’s policy, your non owners insurance policy would cover the excess (up to policy limits).
There are many auto insurance companies in Manhattan New York, so study your options wisely. If you need to shop for auto insurance quotes, you can always get free instant quotes online without having to speak to an agent.