Do you know you don’t need a car to get auto insurance? Indeed, this may sound strange, but it is very logical. It’s at this junction that a non-owner car insurance policy comes in.
When you examine it, you’ll realize that even when you don’t drive, you use the roads. Sometimes, you rent a car for a journey. Other times, you may borrow a car from a friend for a stroll.
In all these scenarios, car insurance counts, and as long as you have a license, you should have coverage. Keep reading till the end for full information on nonowner car insurance.
What is non-owner car insurance?
Non-owner vehicle insurance is a liability policy for those who don’t own a car but still require coverage. These people may include frequent car renters or people who need to provide proof of coverage (such as an SR-22).
What does non-owner insurance cover?
If you cause an automobile accident while driving a rented car, non-owner vehicle insurance covers the following:
- Expenses incurred as a result of bodily injury you cause to others, such as medical bills
- Property damage you cause to others
- Legal defense if you’re sued for causing an automobile accident
Depending on your state and insurer, you may be able to get medical coverage through a non-owner motor insurance policy.
- Uninsured Motorist Coverage: If someone strikes you without liability insurance or insufficient coverage, this coverage pays for your medical expenditures. Uninsured motorist coverage may also cover hit-and-run accidents, depending on your state.
- Medical payments (MedPay): Regardless of who caused the accident, this coverage pays for your medical bills and those of your passengers.
What non-owner car insurance doesn’t cover
While non-owner car insurance covers a driver’s basic liability insurance needs, there are a few factors it may not cover. They include:
- The vehicle you’re driving has sustained damage: Non-owner car insurance does not include collision and comprehensive insurance, which covers many concerns. If another motorist hits your car, the car’s owner can file a claim under their collision and comprehensive insurance.
- Injuries you sustain from a car accident: If your non-owner automobile insurance policy just covers liability, it won’t cover injuries you get in a car accident. If you want to have coverage for injuries, you may need to add medical payments coverage to your policy.
- Other drivers: Non-owner vehicle insurance often covers just you, not your spouse or other household drivers. Some insurers will deny you non-owner vehicle insurance if someone in your household has an auto insurance policy.
- Car renting for business purposes: If you’re driving a car for work, you won’t get coverage from a non-owner vehicle insurance policy. Business use is commonly excluded from non-owner vehicle insurance coverage.
- Items that are yours: If your personal belongings are lost, damaged, or stolen, a non-owner motor insurance policy will not cover them. For example, if your phone is taken from a rented car, your insurance will not cover it. Your homeowners or renters insurance policy may include personal property coverage.
How to know if you need non-owner insurance
There are a few reasons why non-owner car insurance might be beneficial:
- You frequently rent cars: If you often rent cars, you might want to explore non-owner vehicle insurance. It will help you avoid paying for liability insurance from a rental car agency.
- You frequently use a car-sharing service: Non-owner automobile insurance may provide you with more coverage than the provider gives if you utilize a vehicle-sharing service.
- To avoid a coverage gap in your car insurance: You establish a “coverage gap” without vehicle insurance, which car insurance companies see as a bigger risk. It will ultimately result in higher car insurance premiums the next you buy. Non-owner auto insurance is a great way to avoid a coverage gap if you’re in between automobiles.
- State law mandates completing an SR-22 (or FR-44) form: Your state may require you to provide proof of car insurance if you’ve had problems with your license. These documents include DUI convictions, license suspension or revocation, or being caught driving without insurance. Non-owner SR-22 insurance is a way to get auto insurance without owning a car.
Who doesn’t need non-owner car insurance?
- You are the owner of a car: If you presently possess a car, you will require standard auto insurance coverage.
- You’re driving a car that belongs to a member of your family: Everyone in your family who has a car, such as your spouse, should have you included on their insurance policy.
- When you frequently borrow a friend’s car: If you suffer an accident while driving a friend’s car, you will get coverage from their insurance. Insurers may hold you accountable for any damages (such as medical bills) that your friend’s liability insurance doesn’t cover.
- You don’t have much driving experience: If you just drive once in a while or never at all, you probably don’t need non-owner vehicle insurance. If you live in a city and only rent a car for vacation, you don’t require non-owners insurance.
Cost of non-owner car insurance
The cost of non-owner car insurance is governed by several factors, including your state and car insurance carrier. Other common pricing factors include:
- Your driving history: Drivers who avoid traffic tickets and car accidents pay less for car insurance.
- Your age: Younger drivers with less experience may face higher costs than older drivers with greater experience.
- The amount of security you require: If your insurance limitations are higher, you might expect to pay more. We recommend getting more liability insurance than your state’s minimum requirements.
They may hold you liable for the remaining costs if you cause a car accident and don’t have enough liability insurance. Get adequate liability insurance to cover the assets you’d lose in a significant lawsuit, such as your house and savings.
Conclusion
Non-owner car insurance is not as common as auto insurance as it is just a branch. However, depending on your circumstances, it is just as important. Always remember that no matter the situation, don’t go without coverage.
