Who Buys Non-Owner Car Insurance?

Non-Owner Car Insurance covers people who do not own a vehicle but frequently use one. But are there a lot of people who drive other’s cars? More so, are these people insured? In this blog, we’ll explore if agents should focus on Non-Owner’s Insurance or not.  

Getting Down the Basics 

Under a car owner’s policy, you can include your close relatives or friends. A Non-Owner’s Insurance, on the other hand, covers only individuals. As it cannot cover a bulk of people, your target will be individuals.  

Furthermore, basic auto insurance covers third-party injuries and property damages when you’re at fault. But it does not oversee your injuries. This risk opens possibilities for Non-Owner Auto Insurance. What’s more appealing about it is that there are no deductibles.  

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Non-Owner Car Insurance Coverages 

Non-Owner Car Insurance includes coverages as mandated by the state. Keep in mind that this coverage will protect only the most basic claims. Here are some typical claims that non-owner car insurance will pay for: 

  • Bodily Injury: The insurance will consider any medical costs. Moreover, it will also reimburse lost wages and legal fees.  
  • Property Damage: If you’re responsible for any property or vehicle damage, the insurance will cover it. But it will not repair the vehicle you’re driving.  

Due to the nature of the insurance (no vehicle owner), it will neglect any collision or comprehensive damages.  

Finding Your Target

Conditions that demand Non-Owned Auto Insurance:

  • Not all license holders have vehicles. Some states demand such people to require Non-Owner’s Insurance on license renewal.
  • Some car-sharing services also demand such type of insurance.
  • Not all people who frequently use other’s cars get insured. Sadly, they face higher rates when purchasing a vehicle. To avoid such a situation, they can get Non-Owned Auto Insurance.
  • People who rent often are vulnerable to auto risks. Liability coverages can drain significant money from their pockets. You can deter exposure to such dangers through Non-Owned Car Insurance.
  • A lot of people frequently borrow another’s car. Every time they set out on the road; they are in danger.
  • Previous auto owners who are searching for a new purchase also need to be insured.
  • Authorities require people charged with multiple traffic violations to have this insurance.
  • Companies provide vehicles for their employees. The company policy reimburses most claims made during the task of a job. But claims made outside office hours should be covered by the employee. To divert this risk, they can buy a Non-Owner’s policy.

You need to identify the victims of the circumstances mentioned above. Lend a helping hand to these victims. Provide them with an option of insurance that can shield them in dire situations.

Having a network in the car rental industry can be a great source of lead generation. You can collaborate with such companies and sell Non-Owner Car Insurance. You can also tie-up with second-hand car dealers. They know who are selling cars- and the sellers need Non-Owner’s Insurance.  Lastly, you can ask your B2B clients to provide you with employees who lack insurance.

Did we miss anything out? Let us know in the comments

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