All states, except New Hampshire and Virginia, require a minimum amount of liability insurance that you must have to drive your car. You cannot own or operate a vehicle without insurance. However, if you don't have a car, you don't have to insure any vehicle. So, you don't necessarily need car insurance to drive.
You can buy a car insurance policy if you don't have a car but plan to drive another vehicle. A non-homeowner's car insurance policy will provide liability coverage for the injuries or damage you cause in an accident. Non-owner insurance can be useful if the car owner's liability limits are too low to fully cover the incident, or if your landlord's policy denies you coverage. This can happen under some circumstances, depending on the insurance company's rules and the details of the accident.
First, the insurance policy for the car you are borrowing will be used, and then the non-homeowners policy will apply if the damages exceed the limits of liability of the car owner. You should compare insurance quotes for non-homeowners from at least three companies to see who has the cheapest price for the coverage you want. You should take out car insurance for non-homeowners if you rent cars frequently or drive someone else's, or if you're trying to maintain continuous coverage during the time you don't have a vehicle. Insurance for people outside the landlord can also be useful if you are going to be without a car for a period, for example, if you are going to spend a year abroad and want to maintain continuous insurance coverage to avoid higher rates in the future.
Non-homeowner car insurance is usually “secondary coverage,” meaning it's used if the car owner's insurance can't pay for medical and repair bills in the event of an accident where you are at fault. Car insurance for non-homeowners doesn't cover damage to the vehicle you're driving or your own injuries after an accident. As with a conventional policy, it's wise to compare auto insurance quotes before purchasing a non-homeowner's insurance policy. When you drive someone else's car, the owner's car insurance policy should cover you, as long as you use the car with the owner's permission.
Non-homeowners insurance protects your financial health by increasing the total amount of your car insurance coverage. Car insurance for people outside the owner will take effect if you have an accident and the damages exceed the amount specified in the owner's liability coverage. The complete MoneyGeek guide will help you learn about car insurance for non-homeowners in North Carolina and how it works. In addition, non-homeowner car insurance is used by high-risk drivers who must purchase a liability policy to keep a driver's license.
Insurance companies disapprove of interrupting coverage and may charge you higher premiums when you buy coverage again, because their statistical models show that drivers who don't have stable, uninterrupted insurance coverage tend to file more claims. Most insurers also require that you don't have regular access to a car, such as a car that is owned by another member of your household. Car insurance for people who don't own a car can help you avoid an interruption in coverage if you drive frequently but don't own a car, which will help you keep premiums as low as possible. Car insurance for non-homeowners generally costs less than you would pay for the same level of liability coverage on a car you own, but this can vary depending on your driving history, location, coverage limits, and other factors.
