Do You Need Non-Owner Car Insurance In Houston Texas?

Reader’s Question:

I always borrow my neighbors’ car here in Houston, TX. Now, my neighbor told me that it is alright as long as I get myself an auto insurance. Is my neighbor joking about this or is it true that I can get an auto insurance even though I don’t own the car. If there is an insurance policy like that what are the advantages.

Harry

Houston TX

Yes there is an insurance policy like that. And it will make your neighbor more comfortable lending you his car if you own this type of insurance. It is called the non-owner auto insurance. This type of auto insurance policy will cover damage expense done on the vehicle that you don’t own if you are the one behind the wheel and you accidentally collide on something. But let me make this clear to you. Although if you accidentally damage the vehicle of your neighbor, your neighbors auto insurance policy will take effect. Your non-auto insurance policy will only take its role if your neighbors’ auto insurance policy cannot cover the damage that is done on the vehicle. For example, if the estimated cost of the damage is $20,000 and your neighbor or the owner of the car has a liability limit of $30,000, your non-owners’ policy will not be touched. But if your neighbors’ liability limit is only $10,000 then your policy will take care of the remaining deficit.

Another advantage is if you rent a vehicle. Most rental companies also sell car insurance policies that cover throughout the renting period. This may not cost much, but if you are renting too often, it will surely save you money if you have a non-owner auto insurance policy. Notice if you rent a vehicle too often and always pay additional cost for car insurance, try to sum up the additional auto insurance cost and try to compare if you can save if you had a non-owner auto insurance policy.