Car insurance: Do I need it if I drive, but don't own the car?

What happens if you drive but don't own a car? Do you need to buy an insurance policy if you don't have a car? The basic answer is no and yes.

You have a driver's license, generally use public transit, don't own a car, and only drive a couple of times a year when you rent a car or borrow a friend's for a couple of days-- you probably don't need to invest in car insurance. When you rent a car, you should pay for the rental insurance. When you borrow your friends car just check with him or her to find out what the limitations on his policy are so you don't complicate things. Understand that if you are in an accident and his insurance is maxed out you will be liable for any additional payments for property damage or medical damages.

However, if you are using a friend's car more than a couple of times a year (and a couple of days at a time) then his policy may not want to pay out for your indiscretions if you are in an accident. If you rent more than a couple times a year, more like once a month, or every couple of months for a couple of weeks, then you might find it saves you money to buy your own Non-Owners auto insurance policy.

It is good to shop around for Non-Owner auto insurance quotes. You will be surprised to see the diversity in prices. However, they are based on the type of coverage you need and your driving history. A good non-owners policy will give you coverage for PIP (personal injury protection), uninsured, or underinsured driver, liability, and medical. You have the option of including rental reimbursements, towing, moving the up the collision to comprehensive. The basic coverage, depending on your driving history and your location should be between $500 to $1000 per year. Be advised that a non-owner policy will only kick in to pay damages after any other insurance pays out. So your friend's policy might be charged for your accident and it could affect his insurance premium. Nevertheless, it is better to carry the coverage because it minimizes his costs and protects you.

Take the time to review different insurance company's car insurance rates, and let us help you review multiple non-owner auto insurance quotes to help you find the right one.