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A Detailed Analysis of Non-Owner Car Insurance

Have you ever wondered how you can acquire an affordable car policy for a vehicle that you do not own? Well, you have to come to the right place. This reading contains a comprehensive analysis of non-car owner auto insurance, and it can be beneficial to you. Sit back, wear your reading glasses, and enjoy!

What is Non-Owner Car Insurance?

As the name suggests, this is a type of liability-only auto insurance you can use if you are not a car owner but still require an insurance. This type of insurance usually provides coverage to individuals in the following circumstances:

  • You are currently in between vehicles
  • You drive occasionally but do not personally own a car
  • Your driver’s license is suspended, and you need an SR-22

What Are The Benefits Of Acquiring a Non-Owner Car Insurance?

1. Non-owner Auto Insurance for an SR-22

The SR-22 is a certificate that shows and proves that you have the required minimum insurance liability in your state. In most cases, you will need to acquire this certificate if you have had your license suspended, you have been cited for a driving infraction, or after a car accident.

It is essential to understand that the SR-22 is not a type of insurance coverage. Instead, it is a document showing that you have acquired liability insurance. If you are not a vehicle owner but need to confirm that you are insured, you may need to obtain a non-owners insurance policy. This type of policy will help you get the liability coverage that you need without having to buy and insure a vehicle.

You should also consider acquiring non-owners insurance if you are currently working for a company that does not offer an SR-22 to employees, and you need one. Some companies do not provide an SR-22 because they carry a lot of risks. To get this policy in this kind of situation, you will be required to pay for a second policy.

This situation should not worry you very much since non-owners insurance comes at a cheaper rate compared to traditional car insurance policies. You may find that it is cheaper to acquire a non-owners insurance policy compared to switching your policy to a different insurance company. By purchasing a non-owners policy. You will be able to stay compliant with the laws in your state and avoid the suspension of your driver license and fines.

If you want to understand more about SR-22 and its impact on car insurance policies, visit our comprehensive guide on SR-22 insurance cover.

2. Non-Owners Auto Insurance for Occasional Drivers Who Don’t Own a Vehicle

If you don’t personally own a car but you borrow one from a friend occasionally, you may find this type of insurance coverage beneficial. Although auto insurance policies mostly cover the vehicle and not the driver, it is better to increase your liability limit by getting additional protection.

If you are involved in an accident while borrowing a friend's vehicle and the damages exceed their coverage limits, your non-owner policy may cover the difference.

Even if you are not a car owner. A lack of liability insurance when driving can be detrimental. If you have gaps in your insurance history. Also, if you don’t have a car registered in your name, insurance companies can flag your application when you are seeking car insurance in the future. Depending on the insurance company that you used you can end up being charged higher premiums or your policy application can get denied.

3. Non-Owner Insurance for People Who Are Currently In The Middle of Changing Cars

As stated earlier, a gap in your insurance history can hurt you when you are shopping for policies in the future. Even if you have sold your car and do not plan to drive you should get a non-owners insurance policy

This policy can help you keep your future premium payments low as it will keep you in good books with insurance companies. If you don't have a car and employ the services of companies like ZipCar and Car2Go, you are protected from any charges that might exceed your policy limit for rental car services.

Now that we know the reasons why you would need to acquire non-owners insurance, let us now look at what this coverage entails.

What Is Covered Under a Non-Owners Insurance Policy?

You may need this type of policy if you are not currently a car owner but need insurance coverage. This type of policy works in the same way as traditional auto insurance except that with the non-owners policy, you only get liability coverage.

This is because the insurance company which will facilitate your non-owners policy does not know the type of car that you will be driving at any given time. In case of an accident/incident the value of the vehicle to be replaced by the insurance company can vary. It can either be an affordable used automobile or a mint-condition luxury vehicle.

With this policy you will get coverage for the following:

1. Non-owner Liability Coverage (Cover for other vehicles and drivers)

This liability insurance covers any damages that you cause in an at-fault accident. Though it may not offer coverage for damage to the vehicle you will be driving, any damages to the other driver’s vehicle are covered.

2. Non-owner Uninsured Motorist Cover (Cover for you)

If you are involved in an accident with an uninsured driver, this policy will cover you. The nature of the protection offered here usually depends on your policy. However, in most instances the policy will protect any bodily injuries to you and your passengers and any damage to the vehicle.

3. Personal Injury Protection/Medical Coverage (Cover for you)

This policy will also cater for any medical costs and other associated fees for you and other passengers involved in the accident. This protection may include a coverage for ambulance rides, medical expenses, and lost wages. However, the percentage of the liability coverage may vary up to a certain amount or percentage.

Where Can You Get Non-Owners Insurance?

Most insurance carriers do not openly advertise that they are offering non-owner insurance policies. It can be hard to spot insurers offering this type of coverage. Do not worry; we have done some research on insurance companies that provide this type of protection. If you are looking for carriers that offer this type of coverage, you can consider the following insurance companies:

NOTE: This is not an exhaustive list of all companies that provide non-owners insurance and it does not also reflect companies in all states and the specific guidelines of each insurance firm.

  • Dairyland
  • Progressive
  • The General
  • Titan
  • State Farm

Some of the insurance companies that do not offer non-owners insurance policies include:

  • Liberty Mutual
  • Allstate
  • Esurance

NOTE: The availability of non-owner insurance policies varies depending on the state and situation. Some insurance companies do not offer non-owner policies. To get this type of coverage, you have to deal with an insurance agent or broker. If you are seeking this type of insurance coverage call Insurance Online to get your questions or concerns answered today.

Sandra Cruz

Sandra Cruz | Linkedin

Based in Newport Beach, CA, Sandra has been a licensed insurance agent in California and Texas for 5 years and is an editor and writer specializing in all types of insurance matters. Sandra is Insurance Online's authority on auto, home, and business insurance and has been featured in publications such as Forbes, Yahoo! Finance, and US World News Report.

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