Car insurance protects you from car-related losses. As such, you would expect it to be necessary only for car owners. In reality, however, you may need car insurance even if you don't own a car. Here are examples of cases where you are better off with car insurance even if you don't have a car:
You Intend To Drive a Friend's Car
Not all motorists on the road are driving their own cars. You need liability insurance if you ever intend to drive, for example, a friend's car. Liability insurance is necessary here because although the car owner's coverage will pay for any damages you may cause with their car, it might not be enough. If you cause damages that exceed the owner's coverage, the accident's victims will come after you, and it's your liability coverage that will come to your rescue.
You Use Leased Cars
Some people don't own cars but instead use leased ones. If you are one of those people, then you know that the car you lease isn't technically yours, but you are still responsible for insuring it. The leasing company won't be responsible for any damage or injuries you may cause while driving its car. In fact, the lease contract might specify full insurance coverage as one of the prerequisites for taking the car.
Your Non-Owner Status Is Temporary
You should get car insurance if you don't own a car, but expect to own one in the near future. This is because car insurers are wary of drivers with gaps in their coverage. If you have a gap in your coverage, the insurers will view you as a high-risk driver, and your rates are likely to be higher than those without gaps in coverage. Buying coverage will help you avoid that gap.
Your Health Insurance Excludes Car Accidents
Some health insurance policies exclude injuries related to car accidents. If you have such a policy, then you need car insurance to pay for your treatment should you ever get injured in a car crash. You may also need your insurer to settle your accident-related medical bills if you don't have health coverage—for example, if you have recently lost your coverage due to job loss.
Therefore, don't automatically assume that you don't need car insurance just because you don't own a car. Analyze your situation carefully before deciding to go without coverage. Talk to a car insurance agency like Insurance Unlimited of Missoula to help you minimize your rates if money is the primary factor driving you to ignore car insurance.