It is easy to assume that car insurance is compulsory if you own a car. But that is false. It is surprising to many drivers that car insurance can be purchased even if you don’t own a vehicle. Non-owner car insurance, a special type of insurance for drivers who don’t own a vehicle, but drive occasionally on U.S. roads.
Bankrate helps drivers protect themselves against financial losses and financial risk by giving them information that can be used to inform their insurance decisions. Even if you don’t own a vehicle, non-owner car insurance can be very beneficial.
What is non-owner auto insurance?
Non-owner car insurance provides insurance coverage for people who don’t own a car, have no regular access to a vehicle and do not hold a valid driver’s license.Non-owner car insurance, as the name suggests, is liability insurance that covers people who drive occasionally but don’t have a vehicle registered under their name.
Non-owner insurance protects you from injuries or damage to other people’s property while you drive a vehicle you don’t own. You can purchase this coverage for many reasons, including frequent car rental or borrowing.
Before we get into the details of non-owner car insurance, here are some unique facts. Non-owner insurance is not suitable for drivers who live with their car’s owner. You will need to be added as a secondary driver to your primary driver’s policy.
This type of insurance doesn’t cover damage to your vehicle. It is usually less expensive than standard car insurance policies, but you will be responsible for any repairs if you are in an accident with a vehicle you don’t own.
What are the best times to get non-owners auto insurance?
Even though you may not feel the need for car insurance if you don’t own a vehicle, there are situations where it might be beneficial.
Cars are often borrowed or rented frequently
Non-owner car insurance may be useful if you occasionally drive another car. Non-owner insurance can help you cover any damage you owe if you are involved in an accident at fault using a friend’s vehicle. If you live with the person who owns the car, you must be added to their insurance policy.
An SR-22/FR-444 is required
An SR-22 (or FR-44 if in Florida or Virginia) may be required if you want to reinstate your driver’s licence after it was suspended. An SR-22/FR-4 is a form that certifies you have minimum liability coverage in your state. An SR-22/FR-44 is not insurance. It’s important to remember that it is not insurance. To obtain an SR-22/FR-44, you must have insurance. To get your license restored, you will need the SR-22/FR-44.
A non-owner policy will provide you with the coverage you need if you don’t own a vehicle.
You’re in between vehicles and want to avoid coverage lapses
Insurers will raise rates if you have lapsed in your insurance. It is possible to keep your rates down over the long-term by purchasing a non-owners insurance policy. This will prevent you from experiencing a lapse while shopping for a car.
How to get non-owner auto insurance
These are the steps to take in order to get the best non-owner auto insurance.
- Find the right company.The majorityInsurance companiesDo not claim that you have non-owners coverage. Non-owner insurance is not offered by all companies.
- Obtain a quote.Some insurance companies won’t issue non-owner insurance policies over the phone or online. You may need to meet with an agent or broker to obtain it.
Once you have received quotes, make sure you carefully compare the coverage and pricing options to determine which one is best for you.
Non-owner Insurance: Cost
Non-owner car insurance costs vary depending on many factors. These factors include marital status, credit score (in certain states), age and driving record.
These factors are taken into account when you purchase standard auto insurance. Non-owner car insurance does not cover a specific vehicle. Instead, the insurance company will set your rate based on their estimation of how likely it is that you cause an accident.
Questions frequently asked
What non-owner insurance do I need if I borrow a car from my family member?
You might consider adding non-owner coverage if you borrow the vehicle often or for a long time. You can add liability, personal injury protection, and uninsured driver coverage to help you protect yourself in an accident.
Remember that insurance rates may rise if there is an accident with your family member’s vehicle. It is also important to know that you can pay for any additional costs not covered under their insurance policy.
If you are a family member, it is advisable to add you as a driver to the policy.
Can I rent a car without insurance?
Yes. Non-owners insurance can save you money and help you avoid paying the rental car company’s expensive insurance.
My company gives me a company car. Is that a reason to get non-owners’ insurance?
No. Non-owner insurance is usually not available for company cars. Although it is a good idea to check to make sure, most company vehicles are covered by non-owner insurance. If you use the company car all the time, you should add a drive another car endorsement.”
I was driving a friend’s car and got into an accident that caused it to be totaled. Is the car insured by non-owners?
Their car insurance may, but not their collision and comprehensive. Non-owner insurance does not provide comprehensive or collision coverage. It will be helpful if your friend has a policy that isn’t maxed and if the other vehicle is damaged or someone is injured.
What are the things that non-owner insurance doesn’t cover?
Non-owner insurance does not cover liability. It doesn’t cover collision, towing reimbursement, or other roadside assistance benefits that are offered with standard auto insurance policies.