What is Non-Owned Auto Insurance?

Everyone knows what auto insurance is. Most states require that you have a certain amount of auto insurance on all of your vehicles. Non-owned auto insurance is not as common, but it is still quite useful. In order to fully understand what it is, you have to look at what it covers and who can benefit from having it.

What it Covers

Where auto insurance covers your vehicle in an accident, non-owned auto insurance covers vehicles that you don’t own, but may have been operating. If you rent a car, the rental service often tells you that your car insurance probably doesn’t cover accidents in the rental car. However, if you have non-owned auto insurance, it would. To put it simply, this type of auto insurance covers you from losses if there is an accident with:

  • Hired or rented vehicles.
  • An employee’s vehicles that is being used for work.
  • A friend’s vehicle if you sent them out on an errand.

This insurance doesn’t always cover the damage done to the vehicle, but it will cover you from losses if the owner of the vehicle tries to sue.

Who Can Benefit

Most often, business owners benefit from a non-owned auto insurance policy. However, that is not to say that you wouldn’t benefit from it on your personal policy. To figure out if it would really benefit you, you should make sure to talk with your insurance provider today.