Non owner auto insurance is a liability policy for anyone who routinely drives but does not own a vehicle. It is also for those who need to prove coverage by filing for an SR-22 without a car. Whether you often borrow or rent a car, it provides a relatively inexpensive option to buy auto insurance liability coverage.
This insurance offers coverage at slightly cheaper rates than services from a standard policy. Nonetheless, it is not the appropriate choice for all non car owners, such as those cohabiting with the vehicle owner. It is better and advisable to list your name on the car owner’s policy in such cases.
Read on to know more about this policy type and learn how to apply it to your needs.
What is Non Owner Car Insurance and Where Might It Be Necessary?
Non owner auto insurance offers liability coverage when you drive a car you do not own. It pays out for property damage and bodily injury to the other party in an accident. The non-drivers insurance protects you from lawsuits if you are at fault for the accident, similar to a standard liability policy.
Depending on the coverage you select, non owner car insurance can also offer additional protection. You can get liability coverage for a rental car and underinsured or uninsured motorist liability coverage. In addition, you can purchase a policy offering personal injury protection or medical payments coverage.
Notably, there is no specific car assigned to a non-drivers insurance policy. Therefore, you do not get collision or comprehensive coverage that covers damage to the vehicle you drive. Additionally, you do not enjoy the cover of medical bills and extra costs from injuries you get from a collision.
Where Do You Need Non Owner Car Insurance?
When you do not own a vehicle, you need non-drivers insurance in the following situations:
You Often Utilize a Car-Sharing Service
Some car-sharing services such as Turo and Zipcar provide some coverage for drivers. Nevertheless, it is typically just enough to meet your state’s minimum requirements. If you cause a severe accident, the costs could exceed the minimum limits, leaving you responsible. A non owner auto insurance helps address this problem by supplementing the coverage.
Your State Needs Insurance for a Drivers License
The non owner insurance is essential when you are getting a driver’s license for the first time. It is also necessary when you are attempting to restore a driver’s license after suspension. Certain states need insurance as proof of financial responsibility before they can give you a driving license.
You Require an SR-22 or FR-44 Form
Your state can require these forms before reinstating your driving license. This requirement is especially vital after a severe conviction, including a DUI. Insurers file the documents on your behalf after making a mistake on the road. They are necessary, proving that you have the minimum insurance coverage amount mandated by the state.
You Regularly Borrow Others’ Cars
The vehicle owner’s insurance usually pays out for an accident. However, if the resulting costs go beyond the liability limits, you have to cover the remainder. You can get a non owner policy and cover this expense instead of turning to your pockets.
You Frequently Rent Vehicles
When you rent often enough, non owner insurance can be cheaper than liability coverage at the rental counter. Although it usually does not cover damage to the rental, you can get the coverage via credit card. Alternately, you can purchase a collision damage waiver from the rental company. This insurance gives you peace of mind to eliminate stress about a rental car accident in an unfamiliar area.
You Wish to Maintain Continuous Coverage
Insurers perceive you as risky when you go without auto insurance, even between cars. This perception can lead to higher rates when you eventually purchase a vehicle. Thus, it may be cheaper to get non owner insurance when you are without a car for a short period.
How Does Non Owner Auto Insurance Compare to a Typical Car Insurance Policy?
Non-drivers insurance typically offers liability coverage for the other party for bodily injuries and property damage. You can purchase additional coverage to cover medical costs and damage you experience from the accident. Nevertheless, this policy does not offer comprehensive or collision coverage.
In contrast, a typical car insurance policy offers broader coverage since it involves car owners. Vehicle owners usually use their rides more frequently than non-car owners, increasing their risk of an accident. Therefore, a car insurance policy includes state-mandated requirements and optional coverage for convenient protection.
The car insurance policy enables you to carry the mandated property damage liability and bodily injury liability. It also allows you to have uninsured motorist coverage and medical payments or injury protection.
The optional coverage offered by standard car insurance includes comprehensive, collision, and glass coverage.
I. Comprehensive
This policy gives coverage against theft and damage resulting from causes other than an accident. These causes can include vandalism, fire, falling rocks, hail, flood, trees, and other hazards. You can even get coverage for odd cases such as an asteroid hitting your vehicle.
II. Collision
Collision coverage pays out for damage to your vehicle caused by colliding with another car. Besides, it reimburses for collisions with other objects such as a guardrail or tree when you are to blame. This coverage also covers damage from rolling your vehicle or from potholes. However, it does not reimburse you for everyday wear and tear on the car or mechanical failure.
III. Glass Coverage
This policy offers coverage for windshield damage, a common problem for car owners. Some auto insurance policies have no-deductible glass coverage, including rear windows, glass sunroofs, and side windows. Aside from this, you can also purchase supplemental glass coverage.
Do You Need Non Owner Car Insurance If You Own A Car, But Travel Regularly and Use Rentals?
You do not need non owner car insurance when you own a car. It is unnecessary since your liability coverage generally covers the vehicle you rent. Nonetheless, it is vital to verify your policy’s details because extended coverage may not always be the case. Most people with standard car insurance typically get an umbrella policy to get additional liability coverage.
What Is The Average Cost Annually?
The average annual rate of a non-owner’s insurance policy is approximately $474. Insurance companies believe that people who do not have a car are less risky because they cannot use the car on a regular basis. For this reason, this policy is generally cheaper than standard car insurance. It is worth noting that your geographic location, driving history, and the amount of insurance you want will affect the cost of non-owner insurance.
How Does It Work If You Get Into An Accident?
Non owner auto insurance policy generally only the coverage types required in your state. However, you can get extra coverage by selecting limits higher than the minimum. Typically, non-drivers insurance offers liability coverage for the other party in a collision.
It means the policy pays for bodily injury and property damage caused to the other person involved in the accident. For this reason, you need not worry and stress about lawsuits. It is essential to note that the liability coverage does not cover you as the driver. Hence, you need to foot your bill to cover medical bills or repairs to the damaged vehicle.
Nonetheless, non owner car insurance offers convenient flexibility that enables you to choose additional coverage. You can select a package that provides uninsured or underinsured motorists protection. In this case, the policy pays out if you have injuries from a unique accident. Unique means an accident caused by a driver without enough or any liability insurance.
Moreover, you can also get a policy with personal injury protection or medical payment coverage. Here, insurance pays for your injuries after a collision, regardless of who is to blame. Using this policy, you can avoid costly treatment bills from your pocket when involved in a severe wreck.
It is advisable to get more extensive coverage if you regularly drive a car you do not own. The benefits they offer can help you keep financial concerns about a potential accident at bay.
What to Consider When Thinking About Purchasing A Non Owner Car Insurance Policy
You need to look at different elements before purchasing non-drivers insurance to ensure you get the right coverage for your needs. These include:
- Method of payment
- Optimal coverage options
- Terms and conditions
- State’s insurance guidelines
- Insurer’s brand reputation
- Frequency of renting or borrowing
Examining these factors enables you to find the non owner car insurance that caters to your needs sufficiently. This consideration helps you avoid risks of financial wastage or under-coverage.
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