What is Non Owner Car Insurance?
If you don’t own a car then auto insurance is probably the last thing on your mind. But what if you borrow a friend’s car from time-to time? Would you still be covered under their policy? Or what if you don’t own a car and your license was suspended, but in order to reinstate it you need SR22 insurance?
Without car insurance you may be fine to drive if you don’t own a vehicle, but there are some circumstances where you will need coverage and this is where non owner car insurance could be an option.
What is Non Owner Car Insurance?
Non owner car insurance, also known as non drivers insurance, provides a driver with liability coverage when they are driving a vehicle they don’t own. Liability coverage is the insurance that would help pay for costs of an at-fault accident – including both bodily injuries and property damage inflicted on another party. Liability insurance would not cover personal injuries, your passengers’ injuries or any damage to the vehicle you are driving.
When Do You Need Non Owner Car Insurance?
Some examples of situations where non drivers insurance could be a good fit for you include:
- If you need to reinstate your driver’s license. If you were convicted of a DUI or multiple serious traffic offenses, you may be required to file an SR22. An SR22 is a document that certifies that you have the minimum liability limits required by your state. This coverage is necessary regardless of whether or not you own a car. In this scenario, non owner SR22 insurance would be the option for you.
- If you regularly drive cars you don’t own. Whether you frequently rent cars for work, borrow other people’s vehicles or use car-sharing services like ZipC
- ar, a non owner car insurance policy might be the right fit for you.
- If you want to avoid a lapse in insurance coverage. Insurance premiums tend to increase if you have a lapse in coverage. If you have a car that you are planning to sell and you will be without a car temporarily, you may want to consider non owner car insurance in the interim to avoid paying higher premiums down the road.
- If you are a business owner and you want to cover employees if they occasionally use personal vehicles for business purposes. If an employee sporadically uses their personal car to pick-up equipment or run errands for your business they may not be covered under their personal liability if they cause an accident during that time. A non owned policy would provide liability protection in this situation.
How Does Non Owner Car Insurance Work?
Imagine you are borrowing a friend’s car and you cause a major car accident that totals another driver’s vehicle and sends them to the hospital. Your friend’s liability insurance would cover the damages, but if the cost exceeds their coverage limits, you could be on the hook to pay the remaining balance.
If you had a non owner car insurance policy it would kick-in as secondary coverage to pay for the outstanding damages. Non owner policies typically do not have a deductible for claims.
When is Non Owner Car Insurance the Wrong Fit?
While a non owner car insurance policies offers significant benefits, there are some cases where it might not be the right fit for you. Some examples include:
- If you own your own car. Vehicle owners need a standard insurance policy.
- If you want to protect the vehicles you are driving. Unfortunately, non drivers insurance only provides liability protection and would not offer collision or comprehensive coverage for any vehicle you are driving.
- If the vehicle you borrow is owned by someone in your household. If you tend to drive a family member or friend’s car that you live with you will likely be required to be listed as a driver on their policy instead of getting your own non owner coverage.
How Do I Get a Non Owner Insurance Policy?
You can begin the process to obtain a non owner insurance policy by getting quotes from multiple companies to compare your options. However it is important to note that oftentimes you are not able to obtain a non owners insurance quote online and you will have to contact agencies directly over the phone to explain your situation. Additionally, some insurance companies will not provide this type of coverage unless you are an existing customer.
Non owners insurance will likely be more affordable then insuring a vehicle, however the rates are primarily based on how much coverage you need and your driving history. Be sure to do your research to ensure you are getting the right coverage at the right price.
Cost-U-Less specializes in insuring high-risk drivers, including drivers who have had tickets, accidents, a DUI, or require an SR-22. If you need non-owner car insurance in California, you can request a free non-owner car insurance quote online or over the phone by calling (800) 390-4071.