Should You Consider a Non-Owner Auto Policy When You Don’t Have a Vehicle?
If you find yourself in the process of relocating and selling your vehicle, you might be wondering about the implications of your auto insurance coverage during this transition. Specifically, is it wise to maintain a non-owner auto policy even when you don’t currently own a car? Let’s explore the benefits and considerations of this type of coverage.
Understanding Non-Owner Auto Insurance
Non-owner auto insurance is designed for individuals who do not own a vehicle but still may need insurance coverage for occasional driving. This could include borrowing a friend’s car or renting a vehicle when necessary.
While you may not have immediate plans to drive, having a non-owner policy can provide valuable protection. It typically covers liability for bodily injury and property damage in case you are involved in an accident while driving a vehicle that is not yours.
The Risk of Lapsing Coverage
A common concern among many is the notion that failing to maintain auto insurance coverage—especially if you own a vehicle—can lead to a lapse in your insurance history. This can potentially result in higher premiums when you decide to reinsure in the future. For those who are looking to maintain a clean insurance record, opting for a non-owner policy can prevent any disruptions in coverage history, which could simplify the reinsuring process down the line.
Consider Your Future Needs
While you currently may not plan to drive at all, life can be unpredictable. Situations might arise where you might need to rent a car or borrow one from a friend. Having a non-owner policy in place ensures that you are protected in these scenarios, should they arise.
Conclusion
In summary, if you are selling your vehicles and will be without one temporarily, considering a non-owner auto policy could be a prudent choice. Not only does it safeguard you against potential liabilities, but it also helps maintain your insurance continuity, which can be beneficial when you eventually decide to purchase a vehicle again. Ultimately, it’s important to assess your lifestyle and future needs before making a decision. Always consult with your insurance provider to determine the best course of action for your specific circumstances.
