You’re having dinner at a friend’s house and they’ve run out of tomatoes, a key ingredient they use. You didn’t drive to a friend’s house, so you drove to the supermarket in their car. After a few blocks, someone drove off a side street without pausing or even looking in your direction, but you managed to avoid it. Fortunately, everyone is safe, but this is sure to get you thinking. Do you need extra insurance when driving someone else’s car? If you were in an accident, whose insurance would pay for it? Did you know there is a type of insurance called non-owner car insurance? But it’s not mandatory insurance, and it only works for some people.
Before we begin, it’s important to remember that it’s illegal to drive without insurance, whether you’re driving your own or borrowed car. In Canada, you are required by law to have valid insurance to drive to ensure that you and those around you are covered. Let’s now take a closer look at what non-owned car insurance is and look at the different situations in which you might need non-owned car insurance.
What is non-owner car insurance?
Non-owner car insurance, as the name suggests, is a type of car insurance that people can buy when they don’t have a car but need to drive. It will protect you from the financial burden of having to pay out of pocket for injury or property damage in a crash for which you are responsible. With standard auto insurance, a borrowed vehicle is usually covered as an extension of your policy. And with non-owner car insurance, it’s people who are covered. Non-owner auto insurance varies by province, so be sure to check the rules for where you live.
When is non-owner car insurance required?
Here are some instances where non-owner insurance is required:
- Borrowing – you frequently borrow someone else’s car (it’s worth noting that if you frequently borrow the same car or the car is owned by someone who lives with you, you should be included in their policy).
- Rental – You often rent a car. This is an alternative to using insurance available from rental car companies.
- Car-sharing service – If you use a car-sharing service frequently, you can combine your insurance with non-owner car insurance.
When Is Non-Owner Car Insurance Needed?
- The scenario at the beginning of this article is a classic example of where you don’t need non-owner auto insurance. You own a car and have insurance. When you borrow someone else’s car or drive a rental car, your car insurance usually provides limited coverage. The Grand Touring Solution ® is another option you can consider when renting a car.
- You drive a company car, but only for business reasons. Since the vehicle is owned by a company, it should be covered through your employer’s commercial auto insurance.
- The car you borrowed is insured and belongs to the person you live with. Their insurance will cover you as long as you are listed on their policy. But before you drive, make sure they have you added to their policy.
If you have car insurance and someone else is using your car, what to do?
It’s okay for someone to drive your car without non-owner car insurance, provided it doesn’t happen very often. In the event of an accident and the driver of your car is found liable for the accident, your insurance company will cover it.
TD Insurance offers a wide range of coverage options for all of the above without the need for non-owner auto insurance. You can get a quote online in minutes, or ask a consultant to answer any questions you may have.
So the next time someone needs tomatoes for a meal and the family just runs out of tomatoes, you can rest easy knowing that you have insurance coverage, and you can save the day by finding the missing ingredients.