Auto Insurance Forum

What type of insurance, if any, should a person carry if he or she does not own a car but has a driver's license? I'm sure there are many people living in Manhattan in this same situation. When renting a car he or she would purchase the optional insurance but what happens when borrowing a car from a friend or family member?

Irene, New York

Dear Irene,

Insurance for people without vehicles is called nonowners coverage, and it is designed to cover your liability if you do not own a car but frequently borrow cars from family and friends. However, if you drive someone else's car, it is almost always the case that the owner's liability insurance would kick in first if you caused an accident. After the policy's limits are exhausted, nonowners coverage pays for the remaining damages. For more, read No car, no problem, our story explaining the pros and cons of nonowners insurance.

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