Insurance Without a Car: A Comprehensive Guide

If you don’t own a car, you might be wondering if you still need auto insurance. The answer depends on your situation. In this article, we’ll walk you through the scenarios in which you might need insurance without a car, and what type of coverage you should consider.

Scenario 1: You Don’t Own a Car But Drive Someone Else’s

If you frequently borrow a friend or family member’s car, it’s important to make sure you’re covered in case of an accident. While the car owner’s insurance policy will typically cover you as a permissive driver, this coverage may not extend to all situations.

For example, if you’re driving the car for commercial purposes or if you regularly borrow the car and are listed as an excluded driver on the policy, you might not be covered under the owner’s insurance. In this case, you should consider getting a non-owner car insurance policy.

What Is Non-Owner Car Insurance?

Non-owner car insurance is a policy designed for people who don’t own a car but still need liability coverage. This type of policy will typically cover you for bodily injury and property damage liability when you’re driving someone else’s car. It does not cover damage to the car you’re driving, as that would be covered by the owner’s insurance.

Non-owner car insurance can also provide uninsured or underinsured motorist coverage, which will protect you if you’re in an accident with someone who doesn’t have enough insurance to cover the damages.

How Much Does Non-Owner Car Insurance Cost?

The cost of non-owner car insurance varies depending on several factors, such as your age, driving record, and location. On average, you can expect to pay around $200 to $500 per year for this type of policy.

Scenario 2: You Use Ride-Sharing Services

If you use ride-sharing services like Uber or Lyft, you’re covered by the driver’s commercial auto insurance policy while you’re in the car. However, this coverage only applies during specific periods of the ride.

For example, if the driver is en route to pick you up but hasn’t yet arrived, you might not be covered if you’re in an accident. Additionally, if you’re involved in an accident while you’re out of the car (such as while walking to or from the car), you might not be covered by the driver’s insurance.

In these situations, you might want to consider getting a personal accident insurance policy.

What Is Personal Accident Insurance?

Personal accident insurance is a type of policy that will pay out a lump sum in the event of an accident that causes injury or death. This type of policy is often used to supplement other types of insurance, such as health or life insurance.

If you’re using ride-sharing services frequently, personal accident insurance can provide added peace of mind. It can also be helpful if you’re involved in other types of accidents, such as slips and falls or sports injuries.

How Much Does Personal Accident Insurance Cost?

The cost of personal accident insurance varies depending on several factors, such as your age, health, and coverage amount. On average, you can expect to pay around $100 to $200 per year for this type of policy.

Scenario 3: You Don’t Drive at All

If you don’t own a car and don’t drive at all, you might think you don’t need any type of car insurance. However, there is one situation in which you might still need coverage.

If you’re involved in an accident as a pedestrian or cyclist, you might be eligible for coverage under your own auto insurance policy, even if you don’t own a car.

How Does This Coverage Work?

Most auto insurance policies include coverage for accidents involving pedestrians or cyclists. This coverage is typically called “uninsured motorist coverage,” and it will pay out if you’re hit by a driver who doesn’t have enough insurance to cover the damages.

If you don’t own a car, you can still get this coverage by purchasing a non-owner car insurance policy.

FAQ

Insurance can be confusing, especially if you don’t own a car. However, by understanding your options and getting the right coverage, you can protect yourself in case of an accident.