What Is Non-Owner Car Insurance?

In modern times, it is necessary to get everything insured, be it their possession or something they are using for a specific period without any permanence; getting insured means coming under a protective blanket. Therefore it is necessary to get insured and don’t hesitate while deciding to do so since your safety stems from your protection, and your protection solely lies in the insurance.

Even if you don’t own a car but tend to borrow cars or rent them very often for different purposes, which serve a great deal of meaning to your life and profession, you still need car insurance. That insurance that will be utilized here effectively immediately will be liability insurance as it will come in the bigger picture for the sole purpose of protecting your assets which comprise your house and your savings.

Therefore, it has to be kept in mind while making important decisions in life to think wisely and think first about the insurance you are getting since the significance remains cardinal of anything that undergoes the process of insurance.

Non-owner car insurance comes into play here as it guarantees protection since it is something your hard-earned assets warrant without any doubt. Going for non-owner car insurance is an educated choice you and your loved ones can make without any degree of reluctance being present there in the first place.

In addition to giving you a general protective blanket as any other type of insurance coverage, non-owner car insurance also helps you greatly with your issues, such as successfully filling out the SR-22 or FR-44 forms if required by your state. When you are in-between vehicles, chances are substantial that the non-owner car insurance will rescue you and provide assistance faster than any other resource or mechanism.

If you don’t want to purchase an expensive auto insurance liability coverage and have some serious budgetary constraints like anyone else coping with the frequent economic downturns and financial crises, go for a relatively inexpensive option to purchase the same insurance liability coverage. You can only get this with a non-owner liability policy; therefore, it remains significant to anyone planning big and wise for their life without any unnecessary interruptions and faulty judgments.

Read on to find out all the information that you may need to know about non-owner car insurance. So, what are you waiting for? Without any additional minutes of waiting, let us dive right in!

What is non-owner car insurance?

Non-owner car insurance is designed for individuals without a vehicle but requiring coverage. It caters to those who frequently rent cars or need proof of insurance, like an SR-22.

This liability policy provides financial protection for damages and injuries caused to others in an accident. Medical expenses of injured parties can be covered by non-owner car insurance. While additional state-required coverages may be included, the primary focus remains on liability insurance.

It’s important to note that non-owner car insurance is specific to the named insured individual, with limited options for coverage extension to a spouse. Therefore, if you and your spouse need non-owner auto insurance, ensure the policy covers both of you.

More than one name

Non-owner insurance is also known commonly as non-drivers insurance since it is a term of great importance; therefore, it has more than one word in place to be used by everyone in the insurance sector and individuals belonging to the broader public.

Whenever you see a diversity in the vocabulary of a particular concept or notion, then be mindful of the fact that this concept provides greater meaning not just to a specific sector of a nation’s or global economy but the concept also has much weight that needs to be taken account of and its value should not be discounted for while embarking on the undertaking of some major life decisions.

What does non-owner car insurance cover?

When you desire liability coverage for an injury to the body or damage to your property while driving a vehicle not in your possession, your best support system comes from non-owner car insurance. Therefore, remember if, unfortunately, out of the blue, once in a blue moon, you have to suffer from an accident on a busy avenue in your city. If you are the one who gets the accusation of being at fault for the occurrence of an accident, then it will be this insurance coverage that will act as your iron shield.

The non-owner car insurance will safeguard you from the potential outburst of lawsuits in the same manner as a standard liability policy. It is essential to review your policy carefully, but here are some common coverages included in non-owner car insurance:

• Bodily injury: If the other driver is injured and their insurance has a limit of $30,000. Still, the actual medical bills amount to $40,000; your non-owner policy’s bodily injury coverage would cover the difference.
• Medical payments: This coverage pays for medical bills for you and your passengers if you are injured in an accident.
• Personal injury protection (PIP): PIP goes beyond medical bills and may reimburse lost wages during recovery or cover funeral expenses in severe cases.
• Property damage: Property damage liability covers the costs of repairing the damage you cause to someone else’s property, such as vehicles, buildings, or fences. If, for instance, you accidentally crash your friend’s car into a building, your friend’s insurer would cover damages up to their liability limits, and your non-owner policy would kick in to cover any remaining difference.
• Rental car liability coverage: Non-owner coverage also extends protection when driving rental cars. However, if you only rent a car for a short vacation, your credit card might offer some protection, so it’s advisable to inquire about it.
• Roadside Assistance Coverage: covers unwanted car trouble, be it being stranded amid a busy road or pondering why your car is not working in your garage. Adding this coverage plan to one’s insurance plan has its own set of benefits: including towing, lockout service, extrication, flat tire service, fuel delivery, and excellent battery service. Roadside assistance remains an option that may be available in addition to one’s auto insurance policy, but this assistance can also be purchased separately in different cases.

While rental car companies often sell their insurance, it tends to be more expensive than a non-owner auto insurance policy. If you frequently rent cars, compare insurance quotes to find the most cost-effective option. In many cases, a non-owner policy will be more affordable than the insurance rates offered by rental companies.

Who is supposed to buy non-owner car insurance?

If you frequently drive a vehicle you don’t own, it’s important to consider non-owner car insurance. However, getting this insurance depends on various factors, including the situations that lead you to drive, your assets, and your coverage preferences. Here are some scenarios where a non-owner liability policy might be a sensible choice.

Reinstatement of a driver’s license

A US state, be it Ohio or Alaska, makes it mandatory for you to go ahead with an important life decision that is to get your most prized asset (as someone who likes being the best man or woman behind the wheels) reinstated and that most cherished asset indeed is the one that chronicles to your driving and your journeys on the busiest of roads city have to offer, the asset is none other than a driver’s license.

Even to get the best of your most valuable assets reinstated, you have to resort to the process of insurance since there is no other way around it, and here is when the non-owner car insurance comes into the best of sight.

When you try to get or be more formal when you mount an attempt from your end to obtain a license for the first time, there will be an obvious demand from your respective state, which will be to undergo a pivotal process of insurance.

And things don’t stop here as even with your attempts directed towards the restoration of your driver’s license in the possible aftermath of the annoying yet unfortunate and bitter occurrence of the suspension of your beloved asset, than to demonstrate to the state authorities proof of your financial responsibility you have to undertake the key task that is insurance.

Frequent user of a car-sharing service

Car-sharing services are often out there for the better purpose of offering the best, which entails a certain degree of coverage for those driving the cars. But one cannot stay in staunch denial of the hard reality that such an offer is usually only enough to meet an individual’s minimum requirements, which must be fulfilled in line with the state decrees.

The perils of a person being the principal source of a bad wreck and the primary catalyst behind it remain there with the full vigor of reality. Such a bitter facet of reality acting with its full force can drive the costs high up to the point where they can land in a zone of being capable and strong enough to exceed the minimum limits with ease and without any kind of hindrance on the way, therefore rendering the person concerned here responsible for such drastic change. But there is still a silver lining that the concerned individual can cling to as the main motive would be to supplement the coverage mentioned above through the efficient use of a non-owners policy.

Maintenance of continuous coverage

There is a great amount of risk involved with cars and with your life in particular since it only comes once, and once you lose it, there is no way you can have it back; therefore, to proceed ahead in the decision-making of life is not a good idea to initiate such a progression without having auto insurance in place.

A progression without auto insurance can be deemed waste and life in the shadow of fear and dread, not under the bright rays of happiness and optimism. This shadow of fear and anxiety also translates to the risk you run of being labeled in a certain manner by the insurance companies operating out there, as strong are the chances that there will be an escalation of the rates when an individual goes for the purchase of a specific vehicle be it some motorbike or your favorite and latest brand of car.

Therefore it is always handy to keep for yourself a reasonable and fine understanding of the action you may undertake, which may lead to a certain kind of reaction that is not very desirable as higher rates will be the most appalling of repercussions that will have their serious impact being imprinted at a very important stage of your life.

Consequently, it can be said with the complete and utmost assertion that there won’t be higher rates and there can be cheaper rates only if a person intends to buy the non-owner insurance instead of going for skipping coverage in case you don’t have a car in a limited amount of time which translates to a shorter period.

Frequent renting of cars

Non-owner insurance does not have a cost greater than liability coverage when it comes to being placed first and then undergoing a comparison and contrast at the rental counter, though still depending on how often you rent, and it is enough. Peace of mind can certainly be attained, too, if there is a growing concern and ailment in your mind about how you will protect yourself in case of an accident that occurs in a rental car.

It is not something impossible. Instead, chances are solid that you may undergo an accident of this kind because you are using a car you are not primarily acquainted with but using for the first time and are still unfamiliar with its workings and functions. Hence, you must embrace caution as much as possible throughout a journey on an unfamiliar vehicle on the wildest roads ( wild with traffic, not with animals).

It can also offer peace of mind if you’re worried about getting in a rental car accident (after all, you’re driving an unfamiliar car in an unfamiliar area). Traditionally, one should not expect coverage of damage inflicted on the rental. Still, one has to remain hopeful as that coverage can be realized in real-time with the efficient and economized usage and that too of a credit card no matter which bank or type the card belongs to or was issued by. But you will have to consider the issue and the card’s expiry date, as without these, your transactions can be deemed invalid and in vain.

The other option here is buying the collision-damage waiver, which can be availed with a certain degree of ease only from the rental car company you have in mind as the best one in your neighborhood or surroundings.

If you borrow someone else’s car

If borrowing someone else’s car is your favorite pastime or out of necessity, then be mindful of the important fact that the car owner’s insurance usually makes a payment for an accident, but to your loss, if costs are greater than liability limits, you won’t find yourself in a desirable position to be in.

For example, you are responsible for an accident while driving Nick’s car, and the other driver, Joe, needs $25,000 worth of medical care. If Nick, who loaned you the car, has only $15,000 of bodily injury liability coverage on the vehicle, then to your trouble, you will be held responsible for the remaining $10,000 but keep in mind you have a non-owner policy which can ensure coverage of this unfortunate and dastardly expense.

What non-owner car insurance doesn’t cover?

Non-owner car insurance is designed to offer fundamental liability coverage for drivers. However, it comes with several typical exclusions:

1. Exclusion of Vehicle Damage: Non-owner car insurance does not encompass collision and comprehensive coverage. These vital protections guard against an array of issues such as theft, fires, floods, hail, riots, vandalism, collisions with animals, and falling objects. Should an accident occur while driving someone else’s car, the vehicle owner can file a claim with their collision and comprehensive insurance or the at-fault driver’s liability insurance.
2. Personal Injury Exclusion: A non-owner car insurance policy, if limited to liability coverage, will not extend to cover any injuries sustained in a car accident. Adding medical payments coverage to your policy may offer the necessary coverage for injuries.
3. Limitation on Additional Drivers: Generally, non-owner car insurance policies solely cover the policyholder and do not encompass their spouse or other household drivers. Some insurers might refrain from offering non-owner policies if another household member already holds a personal auto insurance policy.
4. Exclusion for Business Use: Non-owner car insurance policies may not provide coverage if the vehicle is utilized for work purposes, such as making deliveries. Business use is commonly excluded from such policies.
5. Personal Belongings Excluded: Non-owner car insurance policies do not cover personal belongings that are lost, damaged, or stolen while in a borrowed vehicle. For instance, auto insurance will not extend coverage if your laptop is stolen from a borrowed car. However, coverage for personal belongings may be available through your homeowners or renters insurance policy.

Temporary non-owner car insurance

It is the type where an individual can get temporary car insurance to drive not his vehicle but instead a vehicle that belongs to someone else. This can only be useful if you are about to embark on a holiday and are willing to share the very act of driving between individuals of various kinds who don’t usually fall under the traditional coverage of this mechanism. Going on holiday and want to share the driving with people who aren’t normally covered.

Things to be kept in mind for practical reasons

Remember there is no specific vehicle allocation to a non-owner auto insurance policy; therefore, collision coverage or comprehensive kind won’t be included. Since there’s no particular vehicle assigned to a non-owner auto insurance policy, it won’t include comprehensive or collision coverage.

Therefore, there won’t be coverage for the damage to the car if you were driving it. Similarly, medical bills and other costs for injuries suffered and sustained in case of a collision won’t get coverage either.

Keep account of a very important fact that the non-owner car insurance is a secondary coverage implying it comes into the picture after payment from a primary coverage.

Notable example

A good example that can be cited here to elaborate further on it is that when a person named John borrows his friend Greg’s car and causes an accident with that car, Greg’s car insurance pays first but up to the policy limits. In case of exhaustion of the policy’s liability limits, your non-owner car insurance comes into play through its payment mechanism as it does by still confining itself to the policy limits.

Who is offering you non-owner car insurance?

As a customer of the insurance sector, chances are few that you will see a proper advertisement from insurers on whether they are selling non-owner car insurance as some car insurers tend to only offer this service to their existing customers, not to new or potential customers.

Most car insurance companies don’t advertise whether they sell non-owner car insurance; some might only offer non-owner car insurance to existing customers.

Sellers of non-owner car insurance

Get yourself connected to some of the sellers of non-owner car insurance. They may have their coverage USA-wide but may be confined only to a few major states, and you may still be required to be an existing customer to cross the eligibility mark for purchasing this particular type of insurance.

Independent auto insurance agent

An independent auto insurance agent will also help you with a better policy search in case you are still looking for yourself the best non-owner car insurance package from any of the insurers listed above.

How much does non-owner car insurance costs?

The cost of non-owner car insurance differs significantly across states and insurance providers, with the minimum insurance requirements set by your state playing a crucial role.

Generally, a non-owner policy is more affordable than a standard car insurance policy. Based on our market research, the annual expense for a non-owner policy can range from approximately $200 to over $1,200. Typically, such a policy does not include a deductible for car insurance claims.

Obtaining a Quote for Non-Owner Car Insurance

If you’re contemplating the purchase of a non-owner car insurance policy, we suggest obtaining quotes from three or more providers. Below, we’ve included a selection of top providers and a free quote tool.

Factors Influencing Non-Owner Car Insurance Costs

Similar to insurance quotes for your vehicle, the cost of non-owner insurance quotes varies depending on the provider and several other factors, which include:

• Age: Younger drivers, particularly teenagers, pay higher premiums than older drivers.
• Marital status: Single drivers generally pay more compared to their married counterparts.
• Driving record: A clean driving history results in lower car insurance costs.
• Credit score: In numerous states, poor credit scores lead to higher car insurance premiums.
• State: Minimum insurance requirements and regulations differ from state to state.
• City: The population density of your city contributes to the number of car accidents and insurance claims in a given year. Consequently, higher car insurance premiums are observed.

Where can I get non-owner car insurance from?

Many car insurance companies do not openly advertise their offerings of non-owner car insurance, and some may only provide this type of insurance to existing customers. For instance, Progressive Insurance does not offer non-owner car insurance when purchasing a new policy. Still, it is available to customers who remove all vehicles from their policy. If you already have a Progressive policy but no longer own a car, you can select the non-owner endorsements to maintain your car insurance coverage.

Below is a list of insurers that offer non-owner car insurance. Remember that availability may vary by state; in some cases, you might need to be an existing customer to be eligible for purchase.

• American Family
• Auto-Owners
• Dairyland
• Direct
• Erie
• Farmers
• Geico
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• The General
• Travelers
• USAA

If you’re unsure where to find non-owner car insurance, consider contacting an independent auto insurance agent who can assist you in finding a suitable policy. Reviewing the policy carefully is essential to ensure it meets your specific needs. For example, if you plan to rent cars frequently and need non-owners insurance, verify that the policy does not limit the number of rentals.

FAQs

Can you obtain car insurance if you don’t own a car?

Certainly, it is possible to acquire car insurance without being the owner of a vehicle. Non-owner car insurance offers liability coverage in case you are involved in an accident while driving a car that doesn’t belong to you. This type of insurance serves as secondary coverage alongside the existing car insurance policy held by the vehicle owner.

What steps should I take if I have non-owner car insurance and decide to purchase a car?

If you decide to buy, you must obtain a standard car insurance policy, as non-owner car insurance does not cover owned vehicles.

A good starting point for finding the right car insurance policy is to compare quotes from multiple insurance companies. Look for a reputable company that offers the coverage you need at a reasonable price and has a solid track record for customer service.

Does non-owner car insurance include coverage for rental cars?

Non-owner car insurance provides liability coverage, which pays for damages to others’ property and injuries if caused by an accident. However, it does not cover damage to the rental car itself.

Suppose you require coverage for damages to a rental car. In that case, you should consider other options, such as insurance from the car rental agency or coverage provided by your credit card company.

Can I insure a car that is not registered under my name?

Insuring a car you don’t own can be quite challenging, depending on the circumstances.

If you frequently drive a car that belongs to someone else, you should inquire about being added to the owner’s car insurance policy as a listed driver. Alternatively, if you wish to be the policyholder for the car insurance, explore the possibility of being added to the car’s title. This would allow you to purchase an insurance policy for the vehicle. If neither of these options is feasible, you can consider obtaining a non-owner car insurance policy.

Where can I purchase non-owner car insurance from?

Non-owner car insurance can be obtained from well-known insurers such as Geico, State Farm, and USAA. However, it’s important to be aware that not all insurance companies offer the option to purchase non-owner policies online. In most cases, you must contact an insurance agent over the phone or visit a local insurance office to obtain this type of insurance.

Conclusion

As you’ve thoroughly absorbed this article, you’ve gained a comprehensive understanding of non-owner car insurance: its various types, acquisition methods, and the opportunities and constraints it entails. You’ve also been introduced to its pivotal role within the broader economic landscape of the insurance sector, where you stand as a vital participant, contributing to the vitality of the national economy.

With clarity now within your grasp, what’s holding you back? Seize the moment and secure your non-owner car insurance today!

Unleash the power of knowledge and take charge of your insurance needs. Whether you’re a frequent traveler, occasional driver, or simply seeking financial security, non-owner car insurance offers peace of mind and protection. Don’t delay—act now to safeguard your interests on the road.