One of the best ways to get cheap auto insurance is to avoid being placed on high-risk driver rolls by car insurance companies. But many people who do not own cars for understandable reasons will not carry auto insurance coverage for what might seem like logical reasons, and car ownership has declined across the United States in recent years.
Unfortunately, not carrying car insurance puts people on high-risk rolls if they decide to buy a vehicle and want to get a good rate on their car insurance plans. But without maintaining insurance coverage for autos, they won’t be able to buy plans from many insurers and will pay a high price when they do get the insurance coverage they need.
A better alternative is to carry non-owner auto insurance, which is a cheap auto insurance plan that provides liability coverage for the few times the named insured might wind up driving. Such instances might be when renting a car while on vacation, borrowing a vehicle from a friend or family member or a possible emergency situation in which driving becomes a necessity.
Non-owner auto insurance policies do not protect the named insured or the vehicle he or she is using. Instead, it protects others if involved in an accident in which the non owner insurance policyholder is at fault, which makes it essentially a liability insurance plan with limits set to those mandated by respective state laws. The policies are very affordable since the policyholder typically will not drive a vehicle and only is carrying liability insurance coverage, which most likely will result in no claims filed. But the policy will cover the named insured for any vehicles in which he or she might be driving.
If renting a car, additional coverage might be required to provide collision and comprehensive insurance protection and would be advisable. The policies are especially helpful for people who do not drive but have a great deal of assets to protect. They might live in a city where public transportation is much more affordable and effective than driving and paying the costs of parking vehicles, such as Chicago or New York City, where parking space is limited and costs more than the price of a monthly car payment in some instances.
But if such a person should rent or borrow a vehicle and wind up in an accident in which he or she were at fault, a lawsuit might lead to a loss of many assets. A nonowner car insurance plan and an umbrella liability policy for additional protection would provide the insurance coverage necessary to pay any costs arising from at-fault accidents for the rare occasions the policyholder would be operating a vehicle. And a typical nonowner plan runs about $50 per month or about half of what normal liability-only car insurance would cost, which is a very affordable rate for those who would benefit from it.
Unfortunately, not carrying car insurance puts people on high-risk rolls if they decide to buy a vehicle and want to get a good rate on their car insurance plans. But without maintaining insurance coverage for autos, they won’t be able to buy plans from many insurers and will pay a high price when they do get the insurance coverage they need.
A better alternative is to carry non-owner auto insurance, which is a cheap auto insurance plan that provides liability coverage for the few times the named insured might wind up driving. Such instances might be when renting a car while on vacation, borrowing a vehicle from a friend or family member or a possible emergency situation in which driving becomes a necessity.
Non-owner auto insurance policies do not protect the named insured or the vehicle he or she is using. Instead, it protects others if involved in an accident in which the non owner insurance policyholder is at fault, which makes it essentially a liability insurance plan with limits set to those mandated by respective state laws. The policies are very affordable since the policyholder typically will not drive a vehicle and only is carrying liability insurance coverage, which most likely will result in no claims filed. But the policy will cover the named insured for any vehicles in which he or she might be driving.
If renting a car, additional coverage might be required to provide collision and comprehensive insurance protection and would be advisable. The policies are especially helpful for people who do not drive but have a great deal of assets to protect. They might live in a city where public transportation is much more affordable and effective than driving and paying the costs of parking vehicles, such as Chicago or New York City, where parking space is limited and costs more than the price of a monthly car payment in some instances.
But if such a person should rent or borrow a vehicle and wind up in an accident in which he or she were at fault, a lawsuit might lead to a loss of many assets. A nonowner car insurance plan and an umbrella liability policy for additional protection would provide the insurance coverage necessary to pay any costs arising from at-fault accidents for the rare occasions the policyholder would be operating a vehicle. And a typical nonowner plan runs about $50 per month or about half of what normal liability-only car insurance would cost, which is a very affordable rate for those who would benefit from it.
0 comments: