Why Non-Car Owners Also Need Car Insurance
by Chimezirim Odimba
An car insurance policy for non car owners? What for? Hold on tight because you're in for a big surprise! A car insurance policy is a smart move even if you don't own a car if you fall into any of the situations I will talk about later in this article.
If your city has a dependable mass transit system, you will not need a personal car for your daily movements. Car rental services are always there to take care of those times you may need a car for private use.
Along with renting a car, you'll also have to get an auto insurance cover for the rent period. These rental service sell such car insurance policies. A non-owner auto insurance policy is, however, cheaper for you on the long run if you rent cars often. You won't have to be buying short term insurance covers from rental companies.
If your friends and relatives know that you have an auto insurance policy they'll be more likely to release their car to you than otherwise. If you are a car owner, who would you consider more responsible: The fellow who has a non-owner car insurance policy and the guy who doesn't? If you show that you are very responsible, people prefer to deal with you.
Hold on. A non-owner car insurance policy works within a certain rule. If an accident happens, your non-owner's policy cannot take precedence over the car owner's policy. It kicks in only if the car owner's policy's liability limit cannot take care of the damages caused. I think an example will help make this clearer...
Let's say you had an accident with a borrowed car that resulted in damages that totaled $27,000. In spite of your non-owner's policy, the car owner's policy will be used if his/her liability limit is, say, $30,000. If, on the other hand, there is a deficit where the car owner's policy cannot cover such damage, your non-owner's policy will take care of the balance.
It is good that you know that irrespective of the type of auto insurance policy you intend to get, you can make a lot of savings by capitalizing on the disparity in car insurance rates. This can save you several hundred dollars or even much more. Moreover, it's very ethical -- No shady deals here.
If the possibility of saving $1000 fascinates you, then take some time out to visit at least three insurance quotes site. All you'll have to do is get and compare quotes. And, it will only take you about 5 minutes per site. Auto insurance quotes sites give quick, free non-obligatory quotes.
Apr 28, 2008
Why Non-Car Owners Also Need Car Insurance
