Non-owner car insurance refers to a policy that effectively covers a driver for any damages to another persons vehicle or person, while under the control of a vehicle that is not owned by the driver. This situation could occur while in a rented vehicle or a vehicle borrowed from a friend.
Non-owner car insurance can be convenient in situations where a vehicle is needed for a short period and cover liability for that term. As is usually the case, non-owner car insurance can vary on coverage offered and the premiums adjusted to suit the level of cover chosen. A self employed person may only be issued with a commercial policy so by adding a non-owners car insurance policy too, they will be covered for most vehicles.
It is important to note that this type of insurance is not available in every country, nor is it available with every insurance company in countries that do provide it. For example some countries will simply require a rental company to provide insurance on a car rental as opposed to a third party insurer. In countries that do provide non-owner’s insurance it can be a much cheaper alternative to either gaining rental company insurance or a standard temporary policy. They tend to include damage liability as well as liability insurance in the event that another person is injured. If this insurance is not available in a particular country an alternative is to be added to the policy of the owner of the vehicle as a second driver or to assign the second driver as a registered owner if there is no credit outstanding on the vehicle.
There may be limitations put on by an insurance company for non-owner’s car insurance. This could be restricted by age, for example the non-owner would need to be over 25 years old, or the type of vehicle may prohibit this type of insurance, an example being a high performance sports car where the second driver would require a specialist policy to cover that type of vehicle.
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