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

The problem that arises is what to do for insurance in these instances where you don’t own a car, but use one a regular basis.

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 or collision coverage because you don’t actually own the vehicle – that coverage would be provided by the owner of the car.   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 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 mind this only provides liability coverage, though.

You belong to a car-sharing service. Car-sharing services are becoming much more popular, especially in urban areas.    And while the service will usually provide some insurance, you should still consider carrying your own policy in the event you are named individually in the lawsuit for an at-fault accident.

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

You have a problematic driving record.  Some states require individuals carry an auto insurance policy even if they don’t own a car, but have had major driving 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 and collision coverage, there is a decrease in the premiums there as well.

Most nonowner insurance policies will start at $200 to $250 for a six month period.

If you live in the Denver metro area and are interested in a nonowner insurance quotes, please give our office a call at your earliest convenience.

Now that the weather is improving we are finding that many of our Denver and Arvada residents are riding their bikes to work or school.  It’s a great way to exercise and save on commuting costs.
In fact, riding bikes is gaining more popularity.   The League of American Bicyclists points out that the “number of trips made by bicycle more than doubled” in the last few years.
An important part of riding a bike is knowing how to cycle safely and how to properly insure your bicycle.

Insuring Your Bicycle

As a  bike can now cost anywhere from a few hundred dollars to several thousand dollars for a racing bike, it’s important to understand how to properly insure your bike from calamities like theft or vandalism.
Fortunately, bicycles are covered under the personal property section of standard homeowners and renters insurance policies. This coverage will reimburse you, minus your deductible, if your bike is stolen or damaged in a fire, hurricane or other disaster listed in your policy. Even better is the fact that most policies will cover you if the bicycle is stolen from your car.
You can insure personal property like a bike in two ways—for its actual cash value or its replacement cost. If you have an actual cash value policy, you would be reimbursed based on the depreciated value of the bike. With replacement cost you would be paid the cost of replacing your current bike less the deductible.

Liability Protection

 Homeowners and renters insurance policies also provide liability protection for harm you may cause to someone else or their property. If you injure someone in a bicycle accident and he or she sues you, you will be covered up to the limits of your policy.
It does not matter if you own or rent the bike; if you have a home or renters insurance policy, you will have liability protection. Most people have $100,000 to $300,000 worth of liability protection as part of their standard policy. But higher amounts of coverage are available. Your homeowners or renters insurance policy also includes no-fault medical coverage in the event you injure someone. This way, they can simply submit a medical claim to your homeowners insurance company without suing you. This coverage usually ranges from $1,000 to $5,000.

Special Note

If you own a particularly expensive bicycle, you may want to consider getting an endorsement to your homeowners or renters insurance policy. A number of insurance companies have endorsements for sports equipment; some specifically for bikes. The endorsement may have broader coverage and there will likely be no deductible.

Let The Holste Agency become your trusted Denver insurance partner.  Our full service insurance agency can provide you with multiple home, auto, umbrella, and even life insurance quotes. having partnered with over 50 top-rated insurance carriers we can ensure that you maximize your discounts and receive the best premiums available without having to sacrifice any of the coverages you need to protect you and your family.
To receive multiple insurance quotes from a Denver insurance partner, please feel free to give our office call.  Within just a few minutes, we will have multiple quote options ready for you to review.