Is Car Insurance Necessary if You Don’t Own a Car?

Insurance is written for specific vehicles, not people. This means that unless you own a car or are under a direct order from the DMV or a court of law, you do not need to have car insurance. And even you are under a court order, the required insurance is probably not a true insurance policy at all, but an SR-22 statement of Financial Responsibility. There is a type of coverage known as non-owner insurance, but it is rarely necessary outside of commercial usages.

If you have been convicted of DUI or other serious offenses, including being involved in an accident without proof of insurance, you may be required by your state Department of Motor Vehicles or the court to carry insurance even if you do not own a car. In this case, the requirement is generally for an SR-22 which is not actually an insurance policy at all, but a bond that says you are covered for up to a specified amount for liability damages.

If you work in an environment where you are required to many different cars on a regular basis, you may be required to carry a non-owner’s insurance policy. This type of coverage is rarely used outside of commercial businesses such as car dealerships or transportation services, and includes liability coverage for damages that you because using any vehicle rather than a specific one as would be the case with a regular policy.

If you need to purchase an insurance policy, the best place to start is with a website that offers free online quotes. You can design the exact policy that you need to have, and then let the website compare premium costs between several different insurance companies, so you can find the best prices from one location, saving you time and money.

Posted in Car Insurance.