You need only look at the sales figures of all the major automakers to see that the numbers are on a steady decline. Younger folks in particular are stepping away from owning a car of their own, opting instead to go with a car-sharing service, such as Zipcar, or borrowing a car from friends and family as they need it. While car insurance seems like an unnecessary expense to those folks, nonowners car insurance might just be a good idea so that they and their assets are protected every time they slip in behind the wheel.
You might wonder why such a policy is needed when you only drive on very sporadic occasions. The answer is that an accident at which you are at fault can result in your assets being wiped out if you don’t have nonowners car insurance. That like playing a game of Russian roulette every time you get behind the wheel of a car that is not your own. There are all kinds of different people that can benefit from this type of policy, starting with those that regularly avail themselves of car rental services.
If you travel for work and have to frequently rent a car, you end up having to pay a small fortune to purchase rental insurance from the car rental company. That is an expense that can be avoided if you maintain a nonowners policy. Many folks make the mistake of thinking that their credit card will cover them if they use that as a form of payment for the rental, but that is not something that can be counted on. Liability coverage is not usually a part of the insurance that is delivered by your credit card provider.
Car sharing services are now available in pretty much every major city across the country. They are growing in popularity among folks that don’t own a car, and while they do offer a level of insurance when you use the, that coverage does not usually protect you against lawsuits when you are at fault in an accident. In those cases, it is usually the service provider and you who are named in the lawsuit.
You might also think you are safe when driving someone else’s car that is insured, but if the injuries sustained by the other individual exceed the level of coverage, you will be on the hook for the remainder (source:Bendell Law Firm PLLC).
You can get a nonowners insurance policy for as little as $250 for 6-12 months, but landing one may not be as straightforward as you might think. If you have a bad driving history or previously lost your license for one violation or another, the chances of you being able to purchase such a policy may be slim to none. If you have a clean record, though, this policy could be a lifesaver if you plan on driving a car other than your own.