Auto insurance will give you protection if you are involved in a car accident, but you may only think it is necessary if you own a vehicle. However, there are situations where you need to have auto insurance when you are not the owner of a vehicle. Be aware of these situations where auto insurance can help.
You Drive Another Person's Car
Drivers do not always drive cars that they own. Even if you are driving someone's car that is insured, you may not get their liability insurance coverage if you get into an accident. While the car owner's insurance will pay for damage caused to other vehicles and property, they may have very low limits that do not cover all of the damages. You will be the one held responsible for covering the difference if the accident victim tries to sue to get compensated for their loss.
You Lease A Car
Do you only lease vehicles? While you technically don't own the car that you are driving, you're still the one responsible for making sure it is insured. Make sure you fully understand the terms of your lease, because it is most likely to be clearly stated what insurance requirements you should have during the terms of the lease. Since it is someone else's vehicle, you may be required to get more expensive comprehensive coverage for accidents that you cause.
You Are Temporarily Between Cars
If you are trying to save a couple bucks by canceling your car insurance while between cars, know that it can hurt you in the end. When applying for new car insurance, insurance providers look at any gaps that you have had in your insurance coverage. This can put you in a higher risk category, causing your new insurance to cost more money in the end.
In addition, many long term loyalty discounts will apply to having continuous coverage. You could lose this discount by stopping coverage. Instead, you must transfer your insurance from one vehicle to the other so it shows as continuous coverage, even if the car is gone while you're waiting to get your next one.
You Have Health Insurance That Doesn't Include Car Accidents
Make sure you fully understand your health insurance coverage, since it is possible that you have a policy that doesn't include coverage for car accident related injuries. The expectation will be that you use your auto insurance policy for these injuries in exchange for a lower rate on your health insurance.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.