Most people believe that if they get rid of the car they have and no longer have a vehicle, they will no longer need to have an auto insurance policy. While there is no law that says you must have car insurance if you do not have a vehicle, there are many reasons why you should keep auto insurance even if you get rid of your car.

What type of insurance would you need for this?

If you do not own a car, there is a special type of auto insurance policy you can get for this situation, and it is called a non-owner policy. Most insurance companies offer non-owner policies, and these policies are specifically designed for people who want auto insurance but do not currently own a car. You might want to have this type of policy if you are in between cars or if your car needs major repairs and will not be available for you to use for several months.

Why would you purchase a non-owner policy?

There are a lot of great reasons you should consider purchasing a non-owner policy even if you do not own a car. The first reason is that purchasing this type of policy would offer protection for you if you borrow a car. If you ask a friend to borrow their car, they might be more willing to do so if you tell them that you have non-owner car insurance. This would reduce your friend's risks, and he or she might be more apt to loan you the car in this case.

Secondly, getting a non-owner policy protects you from the effects of a lapse in coverage. When you allow your car insurance to lapse, you take the risk of being viewed as a high-risk driver to insurance companies. This means you would likely pay higher rates when you decide to get insurance again at some point in the future.

What would a non-owner policy cover?

The main thing that non-owner policies cover is liability protection. If you cause an accident while driving someone else's car, your policy would cover the damages caused to another person's car. The policy would not cover the damages to the car you were driving, though.

If you are planning on getting rid of your car and are considering canceling your auto insurance policy, you may want to talk to an insurance agency about switching your policy to a non-owner car insurance policy.