How to Get Auto Insurance Without A Car

Posted on Dec 2nd 2009, 04:07 pm, under Auto Insurance 101

Automobile insurance is required for almost everyone who intends to drive a vehicle, whether they actually own one or not. If you're planning to borrow or rent a car, it may already come with its own insurance coverage. However, you should also look into getting personal liability protection for yourself as well, in case you ever get into an accident.

First off, besides a valid driver's license, you need to know how much time you'll be spending driving your borrowed or rented vehicle. Get complete information on the ownership of the vehicle, and whether you are covered by any other person's existing insurance policy.

If you've been assigned a company car that you may use during non-working hours, ask your employer about their policy on auto insurance. You may be asked to carry a minimum level of coverage if you're using a company car.

You'll also need an accurate estimate of the total value of your personal assets. This includes your home, furniture, electronics, and other valuables. Estimate your future income as well. These factors must be taken into consideration when buying liability coverage.

Check online for free auto insurance quotes. If you already have rental or homeowners insurance, ask your insurance agent for an additional quote. If you buy coverage from your current insurance provider, you might be eligible for a multi-policy discount.

Make sure that the quotes you get are for liability coverage only. Since you don't own the vehicle, you don't need to buy insurance against theft, fire, collision, or comprehensive damage. You should also ask your insurance agent about the minimum liability coverage rules for your location, since these differ from state to state.

Lastly, inquire about the costs of insurance based on the value of your assets and your estimated future income. You need to protect yourself and your future income; therefore, it may be wise to buy as much liability coverage as you can afford, because a single accident can result in hundreds of thousands of dollars in damages.