If you are moving to the city and are getting rid of your car because you will no longer need to drive, you will probably want to contact your auto insurance company to tell them that you no longer need auto insurance coverage. When you make this call, the auto insurance agent may tell you that you should keep coverage even if you do not have a car. Here are three things to understand about auto insurance coverage if you do not own a car.
You should get a non-owner policy
While you will not need coverage for a car if you do not own one, you should still consider getting a non-owner policy. A non-owner policy is a form of auto insurance; however, it does not provide coverage for a vehicle. Because of this, it will not cost as much as regular auto insurance, but it will provide protection for you.
This policy protects you if you borrow a car
Non-owner policies are great for people who do not own cars but borrow cars from friends. These policies are also good for people who rent cars from time to time. If you borrow a friend's car, this policy would give you coverage if you cause an accident. Friends might be more apt to let you borrow their cars if they know you have this coverage. If you rent a car often, you would need to have some type of insurance policy, and this typically means you must buy a policy through the rental car dealer if you currently do not have insurance. If you have a non-owner policy, you would not have to buy coverage through the rental car agency.
This policy prevents having lapses in your auto insurance coverage
One of the top reasons you should consider getting non-owner auto coverage is so that you can prevent having a lapse in your auto insurance coverage. If you plan to get a car at some point in the future, you will need auto insurance. When you purchase a policy, the insurance agency may charge you a higher rate when they see that you have not had any coverage for months or years. A non-owner policy is considered coverage, though, so buying a policy would prevent you from having a lapse.
While you are not legally required to have auto insurance if you do not own a car, you may still want to keep it. To learn more about non-owner auto insurance, contact an auto insurance agency today.