Non-owner car insurance
You might not think about auto insurance if you don’t own a car, but if you regularly drive other people’s cars, you might want to consider purchasing some level of coverage. Many auto insurance carriers provide a policy option for people who do not own a vehicle. Sometimes referred to as non-owner insurance, this is a specialized option for those who regularly drive vehicles they do not own and want their own financial protection while behind the wheel.
What is non-owner car insurance?
Non-owner or no-vehicle car insurance offers insurance coverage to people who do not own a vehicle, do not have regular access to a car and have a valid driver’s license. To put it simply, non-owner car insurance is liability insurance for people who occasionally drive but do not have a car registered under their name.
Non-owner insurance covers others’ injuries and any damage to their property while you are driving a vehicle that you do not own, up to your policy limits. This coverage can be purchased for many reasons, ranging from frequent car rentals to borrowing a car.
Before we further examine the best non-owner car insurance, there are a couple of unique things to note about this type of insurance. The first is that non-owner insurance is not appropriate for drivers who live with the owner of the car they are driving. In such cases, you will need to be added to the primary driver’s insurance policy.
Second, this type of insurance does not cover the damage done to the vehicle that you are driving. For that reason, it is almost always less expensive than a typical car insurance policy, but you are responsible for the repair costs if you are involved in an accident while driving a car you do not own.
When do you need non-owner car insurance?
Although having car insurance when you do not own a car may not seem necessary to you, there are circumstances where it may be a good idea.
You frequently borrow or rent cars
If you sometimes drive someone else’s car, non-owner car insurance might come in handy. If you are in an at-fault accident using your friend’s car, and you exceed the limit of their insurance policy, non-owner insurance would help you pay for any damages you still owe. However, if you live with the person whose car you often use, you will have to be added to their policy.
You need an SR-22/FR-44
If you are seeking reinstatement of your driver’s license after suspension, an SR-22 – or FR-44 if you’re in Florida or Virginia – may be required. An SR-22/FR-44 is a form certifying that you have your state’s minimum liability coverage. It is important to note that even though you may hear it referred to as “SR-22 insurance,” an SR-22 is not an insurance policy. You must have an insurance policy to obtain an SR-22 or FR-44. The SR-22/FR-44 is what you need to prove you have gotten the auto insurance coverage that is required in your state to get your license reinstated.
If you do not own a vehicle and find yourself requiring an SR-22 or a FR-44, a non-owner insurance policy is what you will need to meet your insurance needs.
How to get non-owner car insurance
There are a few steps you can take to find the best non-owner car insurance for you:
- Find the right company. Most insurance companies do not advertise that they offer non-owner insurance, and some do not offer it at all.
- Obtain a quote. Some insurers will not issue a non-owner insurance policy over the phone or online, so you may have to get it in person with a broker or an agent.
- If you have difficulty finding local coverage, try some of the largest national car insurance companies. Larger insurers often offer more varied options and may be able to accommodate a non-owner policy.
After you receive quotes, be sure to carefully compare coverage and pricing options to find the best fit for you.
Cost of non-owner insurance
The cost of non-owner car insurance varies based on a number of factors. Depending on state regulations, these can include your marital status, credit history, age, location and driving record.
With standard auto insurance, those factors plus the value of the car insured are considered. With non-owner car insurance, there is no specific vehicle insured, so the insurance company sets your rate by their estimate of how likely you are to cause an accident and use those factors to help determine the risk level.
Frequently asked questions
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If you very rarely borrow others’ cars or always purchase coverage from the rental car company when renting a vehicle, you might not need auto insurance. However, there are some scenarios where you might need insurance even if you don’t own a vehicle. If you frequently drive someone else’s car, you may need to be added as an insured driver on their policy. If you occasionally borrow other people’s cars, you might want to purchase a non-owner policy if you’re not comfortable with the liability limits they carry on their own policy and want more robust coverage.
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If you find you are frequently borrowing the vehicle, or borrowing it for an extended period of time, you might want to add non-owner coverage. It will help protect you in case of an accident by adding liability coverage, personal injury protection and uninsured motorist coverage.
It is important to remember though, that if you are in an accident in your family member’s car, a resulting insurance claim may cause their car insurance rates to increase. You would also need to be prepared to cover any excess costs not covered by their insurance policy.
If you live with the family member, you should be added to their policy as a driver.
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Yes. In fact, if you are someone who rents cars frequently, having non-owners car insurance can be a smart move that saves you money. That’s because car rental agencies often require you to pay for liability insurance when renting a vehicle, which can be an expensive add-on. But if you have non-owners insurance, you won’t need to pay the car rental company’s additional fee. Keep in mind that you may still need to purchase separate rental car insurance to cover the cost of damage to the vehicle, though.
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No. Company cars are usually exempt from non-owner insurance. Though it never hurts to ask to be sure, usually, a company vehicle policy covers the car when it’s used for business. If you use the company car all the time, you could add a drive other car endorsement to further financially protect you in case of accidents.
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No, but their car insurance might (assuming they have collision and comprehensive). Non-owner insurance doesn’t provide collision or comprehensive coverage. However, it will help if your friend’s policy is maxed out and the other car is damaged and/or the other party was injured.
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