Non Owned Auto Coverage
Non owned auto coverage is part of a commercial auto insurance policy and is used to protect your business or to protect you personally when you are driving a vehicle that you do not own.
There are many instances in which people drive cars that don't belong to them. Perhaps your business requires that you drive the cars of customers or there is another reason why you need to be in a car that belongs to someone else.
For the individual, doing a favor for a friend can result in you having to drive the car of another. No matter the reason, you have to have protection so that you are not held financially liable for the accident and medical expenses, even if it is your fault.
There are several instances in which you may drive a car that you do not own or require an employee within the business to drive a car that they don't own.
A business that may require an employee to drive a car that they do not own is a valet service at a hotel. Individuals drive up, hand the valet their keys, and the valet then drives their car to a parking space. When the individual wants to leave, the valet gets the car and brings it back. There are times, however, in which the car may not make it to the parking space and may not make it back to the individual. A small fender bender can happen.
Whether the incident is a small fender bender or it is a major accident, you should make sure that your business is protected. The owner of the car will want to pursue you for their damages and any injured parties will want to pursue theirs.
Other businesses that may require employees to drive customer cars include oil change facilities, car washes, car dealerships, and so many more. Even if the risk for an accident is low, accidents do happen and you need to be protected from them.
Individuals drive cars that they do not own all of the time. However, being in an accident may cause that person to be held liable for the damages sustained in that accident. For example, you may drive someone's car because they need you to go to the store for them. You get a few blocks away and you are in an accident. Because you were the negligent party, the person who was injured in the accident may try to pursue you for the damages.
If this scenario were to happen to you, not having the proper insurance coverage on yourself could result in you having to pay the damages out of your pocket. This can be very expensive depending upon the extent of the damage done.
There are many reasons why you may have to drive the car of another person. Perhaps your car broke down and you need to borrow a car from someone for a while. It is their car, so they are insured. You can take out non owned auto coverage on yourself so that you can drive the vehicle and be insured.
So whether you are the owner of a business that must drive customer cars or you are an individual who drives the car of another, you need adequate protection. Without adequate protection, you are leaving yourself wide open for a lawsuit. You do not want to have to deal with the financial consequences that are involved. With non owned auto coverage, the premiums are cheap and you can have the peace of mind that you are protected in case an accident occurs.