What is Non Owner Car Insurance and How to Get It?
Non owner car insurance is for people who don’t have their vehicle but still need to drive from time to time. Maybe you usually get around by train, but occasionally you rent a car on vacation or hop in a carpool to go to a meeting. If you drive other people’s vehicles often enough, non-owner insurance may be right for you.
However, non owner car insurance is not the best option if you regularly borrow a vehicle from a relative or someone in your household. Instead, it should be stated on the car owner’s policy. Depending on your insurer and your state, this may be necessary even if the car belongs to an unrelated roommate and even if they don’t currently have a valid driver’s license.
What is car insurance for non-owners?
Non-owner car insurance, also known as non-driver insurance, provides liability coverage for personal injury and property damage when you drive a vehicle that you do not own. So if you had an accident with another driver and were found to be at fault, your non-owners insurance would protect you from lawsuits just like a normal liability policy would.
In addition to liability coverage, which pays out for injuries and property damage to the other party if you have an accident, non-owners auto insurance may also include:
- Medical Payments or Personal Injury Cover
- Uninsured and underinsured motorist liability insurance
- Liability coverage for rental cars
Since no specific vehicle is assigned to non-owner auto insurance, it does not include comprehensive coverage or collision coverage. Therefore, it does not cover damage to the car you are driving, medical bills, or other costs of injuries that you incur if you are involved in a collision.
How Does Non owner car insurance Work?
Non owner car insurance is purchased on a per-person basis, so only you are covered by a policy, not your spouse or anyone else.
In general, non-owners policies have no deductible, meaning you don’t have to pay any money before coverage kicks in. This is because non-owner insurance is generally secondary coverage, used only if the car owner’s primary coverage is insufficient to cover all damage.
For example, suppose you had an accident while driving your friend’s car and your friend’s insurance policy had a $25,000 limit on property damage liability. If you had caused $40,000 in damages, you would be liable for the $15,000 excess in damages. This amount would be covered by your non-owner’s policy, but only if it includes at least $40,000 in property damage liability coverage. Unless your non-owner liability limits are higher than the person whose car you’re driving, your non-owner insurance won’t matter.
How To Get A Cheap Non-Owner Policy?
To get a quote for non-owners insurance and purchase coverage, all you need to do is provide some basic personal information, along with your driver’s license number and a payment method (such as a credit card).
While most major auto insurance companies offer policies for non-owners, none offer online insurance quotes for non-owners. Even Geico, known for the ease of its online process, requires you to call an agent to get a quote. The table below lists the numbers at which various major insurers can request a quote.
Names Of Company To Get Cheap Non owner car insurance And Phone Number.
- State Farm – 800-782-8332
- Progressive – 1-800-776-4737
- Nationwide – 1-877-669-6877
- The General – 1-800-280-1466
- Dairy – 844-242-4468
Which company is best for Non owner car insurance?
It depends on your driving history and your details as these factors determine your premium. Also, some insurers in certain states do not offer insurance for non-owners. To ensure you pay the cheapest rate, we recommend calling multiple insurers and comparing multiple auto insurance quotes before making a purchase. If you need an SR-22 or FR-44, keep this in mind when you talk to your insurer.
Once you have purchased non-driver insurance, your insurer will send you physical proof of coverage. You can usually also get a copy emailed immediately, if need be. The insurer can file an SR-22 form on your behalf if you require one.
Do You Need Non-Owners Car Insurance?
You are not legally obliged to take out car insurance if you do not have a car. But there are several reasons why you could opt for third-party car insurance:
- You regularly rent cars
- You regularly borrow cars from others
- You have sold your car or are not going to drive it for a longer period, for example, while you are stationed abroad
- You need an SR-22 or FR-44 for a DUI or serious traffic violation
You regularly rent cars
If you frequently rent vehicles, a non-owner policy can easily be cheaper in the long run than buying rental car insurance repeatedly. Rental insurance typically costs at least $20 a day, so if you rent a car, say, 50 or more days a year, it likely adds up to more than the annual cost of Non owner car insurance. politics. Make sure that:
Confirm with the insurer that the non-owners policy provides liability coverage when driving a rental car.
Check if damage to a rental car is covered by your credit card car insurance policy. Otherwise, you may want to purchase collision damage insurance from the rental company.
Credit card auto insurance won’t cover you if someone sues you for damages. This free card benefit only covers damage to the rental car. Combining your credit card rental insurance with the liability portion of a non-owners policy would give you the most comprehensive coverage beyond a policy for a vehicle you own, as your auto insurance policy also provides certain coverage for a rental car.
You regularly borrow cars from others
If you find yourself regularly lending cars to friends or others, non-driver insurance may also be a good option. It ensures a certain level of coverage every time you drive, so you don’t have to worry about whether your car owner’s insurance covers you or whether your liability limits are too low.
Keep in mind that if the car you borrow belongs to someone you live with, or if you constantly borrow the same car, it will likely need to be added to the car owner’s insurance policy for primary coverage. Otherwise, even if you have a non-owner policy, the company that issued it may not cover you at all in the event of an accident.
You have sold your car or are you not driving for a longer period
Nearly all insurers raise rates for drivers who have had a “lapse of coverage,” meaning policyholders will not have auto insurance for some time after they have had insurance. Even if you never drove a vehicle during your time without insurance, you will still be considered a higher risk and will not qualify for the best rates.
Since non-owner auto insurance is cheaper than traditional coverage, it can be a good idea to stay covered with a non-owner policy, especially if you expect to need insurance later on. This is especially true if you have an expensive car. Also, if you’re in the military and deployed abroad, a non-owner policy may be your most affordable option, although some companies like USAA and Geico offer discounts for periods when you’re out of the country. If that is your situation, compare quotes from different insurers to be sure.
You need SR-22 Insurance for Non-owners
If you received a DUI or committed a serious traffic violation, you may need SR-22 or FR-44 insurance to recover your driver’s license. Depending on the SR-22 requirements, you may also need higher limits and need to maintain this coverage for two to five years to maintain your license.
Since you can’t file an SR-22 yourself and your insurer must, a non-owner SR-22 policy can be helpful, especially if you don’t have a car. The company you buy the non-owners policy from can file the SR-22 on your behalf and help you get your license back.
One major benefit of using non-owners insurance for an SR-22 is that it is less expensive. You’ll probably still have to deal with higher rates than others for the reason the SR-22 was needed, but the premiums won’t be as high as traditional auto insurance.
Keep in mind that not all insurance companies, especially smaller ones, will sponsor an SR-22 or FR-44. If yours doesn’t, you can get a non-owners policy through another company and ask them to file the SR-22 on your behalf.
Who Shouldn’t Get a Non-owners car Policy?
You should not purchase a Non owner car insurance policy if:
- You have a car
- You borrow a car from someone you live with
- You rarely borrow someone’s car
- You use a company car, but only for business.
Having a car or living with someone whose car you borrow
If you own a car, you don’t need non-owners auto insurance, as your liability coverage generally covers you if you borrow or lease someone else’s vehicle. However, this is not always the case so it is advisable to confirm the details of your policy with your insurer (usually you will have at least some level of coverage). If you want additional liability protection, an umbrella policy is a better solution.
On the other hand, if you don’t own a car, but sometimes borrow the car from a parent, spouse, or anyone else you live with, you should add their name to your auto insurance policy. Even if you only use the car occasionally, your insurer will need to know that you cohabit and may require you to be named as a driver. Otherwise, the insurer may not cover certain costs or not at all in the event of an incident.
You rarely borrow someone’s car
Technically, you don’t need insurance from the non-owner if you’re driving someone else’s car with their permission. If you have an accident with that car, the owner’s insurance is generally considered the primary coverage and will cover the damage related to the accident. Keep in mind that:
- If a claim is made, your friend’s fares could rise even if you were the culprit driver.
- If the damage exceeds the limits of the homeowner’s insurance, any additional costs will be your responsibility.
- Not all insurers provide coverage if someone other than the owner is driving the car. Be sure to check that you are covered before getting behind the wheel.
You drive a company car
If you drive a company car, meaning the car you drive regularly is owned by your employer, the situation can be a little tricky. When the car is used for business at your employer’s request, the company or your insurance will usually cover you in the event of an accident. However, if you continuously use a company car for personal activities, you will likely be liable for any damages that occur during personal use and you should consider purchasing non-owner insurance.
How much does Non owner car insurance cost?
It is difficult to compare quotes for a non-owner policy compared to traditional auto insurance because you have to call each insurer individually to compare. Overall, our research found that rates for a non-owner policy are 5% to 15% cheaper than a standard policy with comparable coverage. However, the savings can be significantly greater when you compare a non-owner policy to a full-coverage policy, or if you had to insure an expensive car.
The cost of car insurance for non-owners can vary depending on:
- Your coverage limits
- Your driving record
- Where do you live
- How often do you expect to drive?
If you get a Non owner car insurance policy on an SR-22, remember that any DUIs or incidents on your record will still negatively impact your rates even with a no-owner policy. Your premiums with a non-owner’s policy are likely to be higher than what you paid before the SR-22 incident, but less expensive than if you still had a car, along with your poor driving.
Non owner car insurance Frequently Asked Questions
Can you take out car insurance without a car?
Yes, if you want to get auto insurance but don’t own your car, you can get non-owner auto insurance.
What is car insurance for non-owners?
A non-owners policy covers you for basic liability on your policy rather than someone else’s. Rental car insurance can be expensive, and if you borrow a friend’s car and have an accident, you risk increasing their insurance rates.
Who Should Get Non owner car insurance?
There are several situations where you may want to purchase non-owners insurance. One of the most common is if you don’t own a car, but often rent or drive cars that don’t belong to you and want to make sure you’re protected. Another is if you need an SR-22 that you don’t own because of a DUI or other serious driving violation.
Is car insurance expensive for non-owners?
Non owner car insurance is slightly cheaper than regular car insurance. We found that it can cost 5% to 15% less than an equivalent policy attached to a car.
Where can I get non-owners car insurance?
Major insurers, including State Farm, Geico, Progressive, and The General, offer insurance for non-owners. While most major auto insurance companies offer auto insurance policies for non-owners, you’ll need to call the insurer directly to get a quote.