Is Non-owner Car Insurance Something You Need?

Fran Majidi
November 3, 2020

The coronavirus pandemic has caused many people to downsize. For many it’s meant selling a car or perhaps sharing one with a partner or friend. The easiest and preferred way to get coverage in this type of situation is to be listed as a driver on the policy. However, you will not get extra liability coverage this way. Ideally, you’ll be listed on the policy and you will buy non-owner car insurance in case something does happen and the liability limits on the primary policy are not sufficient. If you have a non-owner policy but are not listed as a driver on the primary policy, you may not be covered in an accident in some cases.

Another reason you may want to consider buying a non-owner car insurance policy is if you rent cars frequently, maybe even regularly. You’ll be covered for any damages you may cause in the rental car with a non-owner car insurance policy.

Here are some more reasons you may need to buy non-owner car insurance:

  • You need an SR-22 or FR-44 filing.
  • You need insurance to have your driver’s license reinstated.
  • You use a car-sharing service. Most car-sharing services provide minimum insurance, which is often not enough to cover all damages.
  • You don’t want your insurance to lapse but are in between cars. A lapse in coverage causes a hike in rates.
  • Insuring a car you don’t own (only possible in some states).

What Is Non-owner Car Insurance?

When you drive a car that isn’t yours, a non-owner car insurance policy will provide liability coverage, to pay for injuries and property damage if you’re found to be at-fault in a car accident. It does not offer collision or comprehensive coverage, which means that you will only be paid out for damages you cause to another driver (and/or passengers), but not for your own losses. Non-owner car insurance coverages also vary from state to state. This type of policy covers the minimum requirements of that state. You can also increase your limits.

What Does Non-owner Car Insurance Cover?

As mentioned above, your non-owner car insurance policy should cover minimum state requirements, like liability coverage for injuries and property damage. It may also cover medical payments or personal injury protection (PIP) in states where it’s mandatory. Sometimes, a non-owner car insurance policy will also have uninsured/underinsured motorist coverage too.

Which Companies Offer Non-owner Car Insurance?

It’s not as easy to buy a non-owner car insurance policy as it is to buy a regular policy. Allstate, for instance, does not offer it. Most other insurers offer it, but some will only sell to existing customers. This is definitely not a product insurers are pushing, and the best way to buy a non-owner car insurance policy is through a trusted agent. You can do that by entering your zip code here.

How Much Is Non-owner Car Insurance?

Non-owner car insurance is not expensive at all. In fact, it’s cheaper than buying the minimum car insurance coverage on an actual car. However, your rate will still depend on the same variables used to determine your regular auto insurance rate. To get a quote begin by entering your zip code below.

What Is a Lapse in Coverage and Will This Help?

A lapse in coverage is the period during which you have no car insurance. Even if you don’t have a car during that period of time, most insurers look at lapses in coverage as a high indicator of risk. This causes a hike in your car insurance rate, even if you have a perfectly legitimate reason for not having coverage, like not owning a car. One way to prevent an increase in rates, while protecting you in case you are in an accident in a rented or borrowed car, is to buy non-owner car insurance. If you won’t drive for an extended period of time, you should consider buy this type of policy too.

One way young people can lower their car insurance rates is also by having this type of insurance, which will be cheaper than car insurance on an actual car and can help you coast through those initial years when car insurance rates are at their highest. In most cases, young drivers will be listed on their parents’ car insurance as well, but this is yet another way to know you can borrow another person’s car and still have coverage while building up a clean driving record so you can eventually pay the lowest rates available.

To get in touch with an agent that sells non-owner car insurance, call: 855.214.2291.

What’s Non-owner SR-22 Insurance?

If you were convicted of a DUI or another serious violation, you may need to file an SR-22 or FR-44 in order to have your license reinstated. Your car insurance rates will also rise dramatically. If you don’t have a car or the cost of insurance is unaffordable, you may benefit from buying a non-owner SR-22 policy. It may end up being less expensive, but it’ll cost more than a regular non-owner car insurance policy.

Will I Be Covered Without Non-owners Insurance if I’m in an Accident in Another Person’s Car?

In most cases, if you have the permission of the car owner, you will be covered in the event of an accident, even without a non-owner car insurance policy. Your chances of coverage are even greater if you’re listed on the policy, but you may also be covered if you are not. What a non-owners insurance policy would do is kick in after the primary insurance policy is maxed out, in order to pay for the remaining losses to the other driver and passengers. A non-owners car insurance policy is not your only option. You also have the option of buying an umbrella policy if you feel the need for higher liability limits. It’s always best to speak with a trusted agent before you make these decisions. Begin by entering your zip code below.

Get a Free Auto Insurance Quote Online Now.

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