Insurance: A Guide for the Masses

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Do You Need Auto Insurance If You Do Not Have a Car?

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When you have a vehicle and have a loan on it, your auto lender will have requirements you must meet. One of these is that you must carry auto insurance coverage on the car until you pay off the balance in full. What if you do not have a loan, though? What if you do not even own a car? Do you still need auto insurance coverage? You might not need car insurance if you do not have a car, but you should consider buying a policy anyhow. Here are several things to know if you are in this position.

The Type of Car Insurance You Need if You Do Not Have a Car

You can customize the car insurance plan you buy, and you should update your policy as often as necessary to protect yourself and save money on insurance costs. You should update your policy when you get rid of your car. If you decide that you do not need a car right now, you should cancel your auto coverage or change your policy. If you choose to keep coverage during this time, you could buy a non-owner auto insurance policy.

A non-owner auto policy provides coverage for you if you drive other cars, but it is less expensive since it does not protect a specific car. A non-owner policy is ideal for anyone that wants or needs auto coverage when they don't own a vehicle.

The Reasons You Should Purchase Car Insurance if You Do Not Have a Car

You should consider buying a non-owner car insurance policy for several reasons. First, you should keep an active policy to prevent lapses in your coverage. You should also get a no-nowner policy to have coverage when you need SR-22 for a specified time frame. If you cancel your policy and have a lapse in coverage, you might be surprised at the high rates you will pay for coverage when you purchase a new plan. If you have a lapse in coverage during a period when you need SR-22, you will have to start the time frame over when you get a new policy.

Do you want to learn more about non-owner car insurance? If so, you can call an auto insurance coverage agent to find out the details and information you want to know. Talking to an agent can help you determine if you should purchase a plan or not.