Auto Insurance When You Don’t Own a Car in NJ
Why would you consider buying auto insurance when you don’t own a car in New Jersey? There are actually a few reasons why you may want to consider insurance in this case. Perhaps you occasionally drive a rental? Maybe you’re saving to purchase your own car, and you’re borrowing a friend’s or family member’s car. The question is: Is it possible to buy an auto insurance policy in New Jersey without owning a car? The answer is, “Yes.”
What Is Non-Owner Car Insurance, and What Does It Cover?
A non-owner auto insurance policy, also referred to as “non-driver’s insurance,” provides you with liability protection for others’ bodily injury and property damage when you cause an accident while driving a vehicle you don’t own. Depending on what the insurance carrier offers and the coverage you choose, you may also have uninsured/underinsured motorist’s coverage and personal injury protection, which covers your own medical payments.
It is important to remember that with a non-owner’s auto insurance policy, you won’t have comprehensive or collision coverage to cover damages to the car you’re driving, or in possession of, because there will not be a specific vehicle listed on your policy. Those coverages will need to be purchased by the owner of the vehicle, on their policy.
Who Are Non-Owner Policies Usually For?
There are many different scenarios in which you may need auto insurance when you don’t own a car. They typically fall into two general categories:
1. You occasionally rent or borrow a friend’s or family member’s car (perhaps while saving to buy a car, or at a time when your budget does not allow for owning a car).
2. You recently sold your car and may not drive for months, but you want coverage when you do.
If you find yourself fitting one or both categories, it’s important that you have liability coverage even if you don’t own your own car. Maybe you typically purchase the auto insurance that is offered by the company renting or leasing the vehicle you drive? Depending on the overall cost and coverages offered, purchasing your own, non-owner auto insurance policy may provide additional coverages, and/or be significantly more cost-effective.
Why Is Non-Owner Auto Insurance Needed?
You may think of auto insurance primarily as coverage that protects the vehicle; however, the following protections are important in the event you cause an accident as the driver of a vehicle you don’t own:
- Bodily Injury Liability – Protects you against claims and lawsuits brought by people who have been physically injured as a result of an accident for which you are at fault.
- Property Damage Liability – Coverage for claims and lawsuits from people whose property was damaged as a result of an accident that you caused.
- Personal Injury Protection - Provides coverage for your medical expenses, lost earnings and other expenses when you are injured in an accident.
As previously mentioned, you may have the option to include uninsured/underinsured motorist’s coverage as well as personal injury protection on your non-owner auto insurance policy. Be sure to check with your insurance carrier to know what coverage options are available.
How Can I Purchase Non-Owner Auto Insurance?
Not every auto insurance carrier offers a non-owner car insurance policy, so this is not the best time to be picky about coverage and premium. The cost of a non-owner auto policy (as with traditional policies) will depend on various risk factors, such as your age, gender and driving record. Be sure to inquire about the cost of this coverage before taking the necessary steps to obtain it, as it may likely be a higher rate than a regular, basic policy, depending on your personal variables. You can read here if you are wondering about other benefits of car insurance that may apply to you.
