I Don’t Own a Car, Do I Need Auto Insurance?

For many, auto insurance is a significant monthly expense. In some cases, you may be tempted to get rid of the payment entirely by foregoing auto insurance coverage. However, doing so can have some serious negative consequences.

Auto Insurance for Those Who Don’t Have Vehicles

In a city with a good public transportation system, like Las Vegas, some people find that they can get by just fine without a personal vehicle. However, if you are licensed to drive, then generally speaking, you should carry at least minimum liability auto insurance. Lapses in auto insurance coverage can result in very high rates when you do purchase a vehicle. The reason for the high rates are because once you do finally get a car and need insurance, the insurance industry may consider you a higher risk because they assume you’ve been driving without a policy. This makes you a higher risk, hence the higher rates.

What Is Non-Owner Auto Insurance?

Non-owner auto insurance is, unsurprisingly, for drivers who do not own vehicles. If you rely on public transportation or your feet or bicycle to get around town, then you may mistakenly believe that you’re off the hook for purchasing auto insurance. However, if you occasionally rent a vehicle, use a car-sharing service, borrow other people’s cars, or you simply want to avoid gaps in auto insurance coverage, then non-owner auto insurance may be for you.

Because you’re statistically less likely to file a claim, non-owner auto insurance typically costs considerably less than a standard auto insurance policy, however, you usually must prove you’ve had prior auto insurance for the previous 6 months. An auto insurance agent can help you find the best price available to you.​

What Does Non-Owner Auto Insurance Cover?

In most cases, non-owner coverage includes state-mandated auto insurance coverage. This generally includes liability coverage and may also include uninsured/underinsured motorist coverage and medical payments, depending on where you reside. It does not usually include comprehensive or collision coverage, which pays for damages caused to the vehicle you’re driving if you’re at fault for a collision.

Auto Insurance for Those with Tight Budgets

Oftentimes, drivers have a difficult time recognizing the value of their auto insurance coverage, particularly if they’ve gone years or even decades without filing a claim. Because many people rarely actually need to use their auto insurance coverage, they may think that they can forego coverage altogether.

However, not only is driving without auto insurance coverage risky, but it’s against the law. Any money that you save by not paying monthly premiums is quickly swallowed by the massive repair and medical expenses that may result from a car accident for which you are at fault. Also, if you are at fault, and you don’t have insurance, you may have your future earnings garnished for the rest of your life, or until your debt is paid to the person you were at fault of hitting. The DMV will also fine you for going without coverage.​

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Auto Insurance for Those Who Are Sick

If you are temporarily sick or disabled and you’re unable to drive but expect to be able to in the future, then you should maintain your auto insurance coverage. This is especially true if other people will be driving your vehicle. We’d recommend maintaining at least state minimum liability.

Auto Insurance for Those Who Are Deployed in the Military

For those who are deployed in the military, this is perhaps the only scenario in which it is perfectly acceptable (and legal) for a licensed driver to cancel their auto insurance policy without penalty. Active-duty military personnel who are deployed overseas are not required to carry auto insurance, and they are not considered to be high risk when they return home and purchase a new auto insurance policy.

Affordable Auto Insurance with Nevada Insurance Enrollment

If you do not own or regularly operate a vehicle and are looking for a budget-friendly auto insurance policy, talk to an auto insurance agent at Nevada Insurance Enrollment. We specialize in helping drivers from all walks of life find quality auto insurance coverage that meets their needs.