These days I’m hearing an increased desire to “go green”. Whether it’s to save the environment, to save your wallet, or some combination, more and more of my clients are opting out of traditional auto ownership. Some become confirmed walkers and public transit takers, others grab a cab, but everyone has the occasion need to use a vehicle. You might want to drive to an important client meeting, a weekend getaway, or simply do the monthly household shopping. So the question arises, “do I still need an auto insurance policy?” Here’s a few simple tips:
First – establish ahead of time the amount of Liability coverage you need. In CA, most drivers will need more than the minimum required limits if they are ever involved in an auto accident. For starters, I encourage my clients to cover their income, and if they own property or investments, to make sure those are covered too. This may be more coverage than you've had in the past. Need help? Call us!
Next: talk to the people who will lend you their vehicle
Cars Share Programs: Car share programs have become increasingly popular for urban and student drivers. Some “car share” programs offer $1mm coverage which will take care of most people’s needs. Read the fine print because insurance coverage varies between programs, and if you have larger insurance needs, you’ll want a program that offers higher limits.
Traditional Rental Car programs: Renting cars is a great option for longer trips, and for business travelers. Liability limits at Rental Car companies are typically designed to cover State mandated coverage. Most drivers get their increase coverage needs met by their auto policy. If you don’t own a vehicle, you’ll need a different solution.
Borrowing cars from friends or family: We all do this in a pinch, so let’s talk about how you are covered when you borrow a car. The answer is “it depends”. Typically auto insurance follows the vehicle, not the driver. Some very popular policies however have a “named driver” clause which means ONLY the people named on the policy will be covered in the event of an accident. The other situation I’m sometimes concerned about is that your friend or family member may be driving on lower limits than you need. In those cases, if you owned a car, your policy would pick up the difference. If you don’t own a vehicle, you may want your own coverage.
Solution: If you are a safe driver, you may not realize that there’s a type of insurance policy called a “non-owned” auto policy. People who’ve with driving blemishes, especially DUI’s are required to carry this type of policy in order to maintain a drivers license. However, there’s no stigma for the rest of us to purchase one. The benefits of a Non-Owned Auto policy are that you know that you (and your home, savings, retirement, paycheck) are fully protected whenever you drive.
Need a non-owned auto policy? Call for a quote today at 510-842-3600
