Hired Help & Non-Owned Auto Insurance For Florida Small Businesses

Non-owner auto insurance is meant to provide liability coverage for those who drive cars that they don’t own. For example, you would have liability coverage for a car that you rent or borrow. If you rent or borrow cars frequently then non-owner auto insurance could be the best type of auto insurance for you since other forms of car insurance may not be applicable to your situation. Keep in mind, however, that this form of insurance doesn’t usually cover medical expenses in case of physical injury and it typically does not cover the physical damage to the non-owned auto.

People who often drive their friends’ cars would benefit from non-owner auto insurance. This doesn’t apply to driving the car of someone you share a house with though. If that’s the case then you should be listed on their policy instead as living with someone can void a non-owner insurance policy.

Despite not always providing medical coverage, non-owner auto insurance has lots of benefits. The first of these is that provides protection for liability. If you’re driving a friend’s car and get into an accident, their insurance or financial capabilities might not be able to cover the damages fully. Non-owner auto insurance would come in handy and fill the gap by paying for the damages.

Having non-owner auto insurance will also help you save money when you rent a car. Rental companies have pretty expensive insurance coverage and by having your own insurance, you won’t necessarily need to pay for it. This is great for those who rent cars frequently and suffer from the expensive insurance offered by rental companies.

Another important factor to consider is your driver’s risk status. Without prior insurance, you may be classified as a high-risk driver. The problem here is that because of your status, you can end up paying a higher rate on auto insurance if and when you decide to purchase a car. Non-owner auto insurance will provide proof of prior insurance and that you’re financially responsible thereby making you a lower risk driver. Being a low-risk driver will normally lead to lower insurance rates when insuring your own car.

While non-owned auto insurance policies have many coverages that are included in the policy, it is important to remember that they don’t apply to cars you own. As we already mentioned, they won’t cover physical damage and medical expenses either. Also, if you’ll be driving a car that’s owned by someone in your household, non-owned auto insurance won’t cover you as it doesn’t cover cars you frequently drive. Alternatively, you should be listed on the insurance policy of the car’s owner.

A lot of people make the mistake of not getting insured, and plenty doesn’t even know about non-owned auto insurance. Perhaps by learning more about it and its benefits, more people will be encouraged to get it.