The vast majority of US states require that every car owner have at least the minimum amount of liability insurance. But what if you don't own a car? Should you get a policy too? If you do a significant amount of driving – whether in a rental car, a friend's car, or a company-owned vehicle, you might want to consider getting a non-owner insurance policy.

Basically, non-owner car insurance works like this: you purchase a policy from your insurer or car rental company (if you're renting one). In the event of an accident, your insurance will pay for the damage or injuries you cause to the other party. Take note, however, that some experts recommend that you consider other options before deciding to buy insurance from car rental firms, as their prices are considerably higher than those offered by other insurers.

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Also, remember that this type of insurance will not cover the cost of repairing the car that you are using. This is why it may also be wise to consider buying collision and comprehensive insurance. The first will pay for damages to the car you are using if you hit another automobile or any other object; the second will insure it against events like theft and natural disasters. Another good thing about non-owner insurance is that most of them include uninsured motorist coverage. Some insurers also offer plans that carry personal injury protection (PIP) and medical payments.

Non-owner insurance is also helpful if you often use the car of a friend or family member with whom you do not share a residence. Although the primary insurance that will kick in is that of the car owner's in case of an accident, the insurance you have will help cover any amount in excess of the limit of the vehicle owner's insurance.

The events covered by non-owner insurance can vary according to state and/or insurance company. It would be best to consult with an insurance professional before you sign up for a policy. Just remember that all drivers should have at least the basic coverage. Not having a car you can call your own is no excuse for neglecting the potential financial consequences of driving.

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