I am a teenager and want to drive my parent’s car. My friend tells me I should get non-owners insurance. What is non-owners insurance?
Total Comments: 4
Posted: Fri Apr 09, 2010 08:31 pm Post Subject:
Non-owners insurance is an automobile insurance policy that does not list a specific car. It is available to people that do not own a car, but want to make sure they are insured when they drive someone else’s car. In the event of an accident, the auto owner and the driver both can be found liable for damages caused by the driver. In the event the insurance on the automobile is not sufficient to cover the claim, the non-owners insurance policy steps in to cover the excess.
With this said, please note, non-owners insurance is NOT designed to cover a teenager that will be driving a parent’s car. If a child is not listed on a parent’s policy, there is a very good possibility the parent’s policy will deny the claim. Therefore, the non-owner’s policy that was designed to pay second is now paying first. In many cases, the non-owners insurance policy might not provide the amount needed to pay the entire claim. Then the parents find themselves having to pay for the excess amount out of their pocket. Also, in the event a lawsuit is filed as a result of the accident, the parents would be required to pay for their own attorney, as their policy would deny coverage for such as the child was not a listed driver.
Posted: Mon Apr 12, 2010 02:53 pm Post Subject:
Non Owners policies were designed primarily for drivers who do not own a car, the question becomes, if I don't own a car why do I need insurance? Generally the insurance follows the car not the driver. If I am driving another’s car with permission their coverage will extend to me through their car's policy. Non owner’s coverage will kick in when they do not have insurance on their car and allow me to drive it.
Much of the “non owners" business involves drivers that have to provide proof of financial responsibility in their state to get their driving privileges reinstated. In other words, their license is suspended and they need a state filing to reinstate it, they don't own a car but want a valid drivers license. This often arises when they crash their car without insurance in a state with mandatory insurance.
Many non owners’ policies exclude coverage for vehicles that the insured has regular access to and vehicles owned by another household member.
Terms like "regular use or access" can be ambiguous and subject to company interpretation. I worked for a company that defines "Regular" as more than once in a policy period.
Really Non owner’s coverage and policies are designed for someone who does not have regular access to a vehicle and just needs to comply with a DMV order to show financial responsibility.
Posted: Fri May 07, 2010 08:28 pm Post Subject:
A non-owners policy was designed to provide coverage to an individual that did not own a car, but wanted to be protected in the event they drove a vehicle and became liable for an accident. The policies were designed primarily for people that were provided company cars, therefore, did not have a vehicle to insure. They may have either desired coverage in addition to what the company car policy afforded or wanted the coverage to extend to another non-owned vehicle that was being driven outside of work purposes. In this case though, where you are wanting to drive your parent’s vehicle, a non-owners policy is not the answer. You may have people that are not fluent with the insurance contract recommend such to you because they think it is a way to circumvent paying a higher premium being on your parent’s policy. Unfortunately though, what they don’t realize, is by only having a non-owners policy, you would leave your parent’s out to dry, thus having to cover their own legal fees, in the event you were in an accident. My advice to you – when it comes to insurance, don’t try to wiggle your way around to get the cheapest price. Make sure you are dealing with a licensed professional when asking about coverages and get the proper coverage. You, as well as your parents, will be happy you followed that advice come claim time.
Posted: Sat May 08, 2010 09:31 am Post Subject:
Persons under 21 and still living at home who don't own a car mostly obtain their auto insurance by being included on their parents' policy.
Nonowners is also perfect for people who live in places like New York City who do not own a vehicle, but travel frequently and need to rent a vehicle at their destination and prefer not to pay exorbitant daily fees for CDW.
Posted: Fri Apr 09, 2010 08:31 pm Post Subject:
Non-owners insurance is an automobile insurance policy that does not list a specific car. It is available to people that do not own a car, but want to make sure they are insured when they drive someone else’s car. In the event of an accident, the auto owner and the driver both can be found liable for damages caused by the driver. In the event the insurance on the automobile is not sufficient to cover the claim, the non-owners insurance policy steps in to cover the excess.
With this said, please note, non-owners insurance is NOT designed to cover a teenager that will be driving a parent’s car. If a child is not listed on a parent’s policy, there is a very good possibility the parent’s policy will deny the claim. Therefore, the non-owner’s policy that was designed to pay second is now paying first. In many cases, the non-owners insurance policy might not provide the amount needed to pay the entire claim. Then the parents find themselves having to pay for the excess amount out of their pocket. Also, in the event a lawsuit is filed as a result of the accident, the parents would be required to pay for their own attorney, as their policy would deny coverage for such as the child was not a listed driver.
Posted: Mon Apr 12, 2010 02:53 pm Post Subject:
Non Owners policies were designed primarily for drivers who do not own a car, the question becomes, if I don't own a car why do I need insurance? Generally the insurance follows the car not the driver. If I am driving another’s car with permission their coverage will extend to me through their car's policy. Non owner’s coverage will kick in when they do not have insurance on their car and allow me to drive it.
Much of the “non owners" business involves drivers that have to provide proof of financial responsibility in their state to get their driving privileges reinstated. In other words, their license is suspended and they need a state filing to reinstate it, they don't own a car but want a valid drivers license. This often arises when they crash their car without insurance in a state with mandatory insurance.
Many non owners’ policies exclude coverage for vehicles that the insured has regular access to and vehicles owned by another household member.
Terms like "regular use or access" can be ambiguous and subject to company interpretation. I worked for a company that defines "Regular" as more than once in a policy period.
Really Non owner’s coverage and policies are designed for someone who does not have regular access to a vehicle and just needs to comply with a DMV order to show financial responsibility.
Posted: Fri May 07, 2010 08:28 pm Post Subject:
A non-owners policy was designed to provide coverage to an individual that did not own a car, but wanted to be protected in the event they drove a vehicle and became liable for an accident. The policies were designed primarily for people that were provided company cars, therefore, did not have a vehicle to insure. They may have either desired coverage in addition to what the company car policy afforded or wanted the coverage to extend to another non-owned vehicle that was being driven outside of work purposes. In this case though, where you are wanting to drive your parent’s vehicle, a non-owners policy is not the answer. You may have people that are not fluent with the insurance contract recommend such to you because they think it is a way to circumvent paying a higher premium being on your parent’s policy. Unfortunately though, what they don’t realize, is by only having a non-owners policy, you would leave your parent’s out to dry, thus having to cover their own legal fees, in the event you were in an accident. My advice to you – when it comes to insurance, don’t try to wiggle your way around to get the cheapest price. Make sure you are dealing with a licensed professional when asking about coverages and get the proper coverage. You, as well as your parents, will be happy you followed that advice come claim time.
Posted: Sat May 08, 2010 09:31 am Post Subject:
Persons under 21 and still living at home who don't own a car mostly obtain their auto insurance by being included on their parents' policy.
Nonowners is also perfect for people who live in places like New York City who do not own a vehicle, but travel frequently and need to rent a vehicle at their destination and prefer not to pay exorbitant daily fees for CDW.
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