How Does a Non Owner Liability Insurance Policy Work

January 27, 2012

If you are driving a car that doesn't belong to you (for instance a rental or borrowed vehicle) and have an accident that's your fault non owner liability insurance can cover damages. It is important to realize that this type of coverage can help, but it is limited. You need see it as what it is - liability insurance. That means it does not cover your person or the vehicle you are driving. It does cover anyone hurt in accident that's deemed to be your fault. It will also cover vehicles (other than the one you are driving) and other types of property you damage by hitting it while driving. There are other limitations. For instance, if you are driving a vehicle that belongs to someone else in your household, the coverage does not apply. If you are driving a work vehicle it won't cover you. If you have borrowed the vehicle for an extended period of time - or if you borrow it frequently - non owner liability insurance won't cover you.

If you fall into the assigned risk category, you might be getting non owner liability insurance. This type of coverage is for drivers that (for one reason or another would not be able to get conventional insurance). Since states require liability insurance, for those who are in this group, the state assigns them to an insurance company - who must insure them. Thus the term "assigned risk".

If the vehicle you want coverage on is a rental vehicle, the answer is probably rental car insurance. It should cover everything that non owner liability will cover, but also handle damage caused to your person or the rental vehicle that was caused by your driving.

Keep in mind that many times your own automobile liability insurance will cover you in the same instances that non owner liability would kick in to handle damages. Check into the limits and possibilities.

Related Questions and Answers

What Would Cause a Car Driver to not be Able to Get Conventional Insurance?

There are many things that can prevent a driver from getting conventional insurance. Getting picked up for a DUI will in most states put you into a high risk insurance group. This means that many insurance companies will refuse to insure you, and the ones that will, are going to be quite expensive. Getting numerous speeding tickets or being arrested for reckless driving can also land you in a high risk insurance group. While getting a speeding ticket or two will usually just up your premium, more serious infractions can make insurance extremely expensive. If you are put into a high risk category, expect your premiums to triple.