Did you know that vehicle ownership is actually declining, especially in urban areas? Many people now prefer to use a car-sharing service or rent or borrow a car.

The problem is what to do for insurance when you don’t own a car but use it regularly.

Some insurance companies offer an insurance policy now called a “nonowner” policy. This auto insurance policy will provide liability coverage to protect you and your assets in the event of a claim.

The vehicle doesn’t provide comprehensive coverage because you don’t actually own the vehicle, and the owner would provide coverage. One of the great features of this type of policy is that it will cover you for any type of vehicle that drive during the policy period.

Additionally, if you regularly rent a vehicle, this policy will be much cheaper than any policy you purchase directly from the rental car company.

When should you consider a nonowner car insurance policy?

You rent cars often. If you rent cars for more than 40 to 50 days a year, then a nonowner policy will be much cheaper for you in the long run. Keep in mind this only proves liability coverage, though.

You belong to a car-sharing service. Car-sharing services are becoming much more popular, especially in urban areas. While the service usually provides some insurance, you should still consider carrying your policy if you are individually sued for an at-fault accident.

You borrow other people’s cars often. When yopeople’s a vehicle the owner’s auto insurance policy owner’sver you; however, there are instances where the person may have let their insurance lapse, or they don’t carry vehicle limits hidon’tough to protect you in the event of a claim adequately. A nonowner insurance policy would eliminate all of those concerns.

You have a problematic driving record. Some states require individuals to carry an auto insurance policy even if they don’t own a car but have had violations like a DUI or DWI.

Usual cost of nonowner car insurance

The cost of nonowner car insurance is much cheaper than a standard auto insurance policy.   A nonowner policy assumes that you will be driving much less than someone who owns a vehicle, and because you don’t have to carry comprehensive don’t collision coverage, there is a decrease in the premiums there as well.

Most nonowner insurance policies will be $200 to $250 for six months.

If you live in the Denver metro area and are interested in nonowner insurance quotes, please give our office a call as soon as possible.