Non-Owner Car Insurance

What is Non-Owner Car Insurance?

A non-owner car insurance policy provides essential liability protection and covers you if you cause an accident while driving a vehicle you do not own.

Basically, it will cover you if someone else's car gets damaged because of an accident you're involved in.

How It Works (Secondary Coverage)

Non-owner insurance kicks in after the main car owner's auto insurance policy limits have been used up. That means the car owner's insurance pays first, then the non-owner's insurance kicks in. It pays for bodily injury and property damage you cause to others in an accident.

But it only pays if the accidents costs are higher than the owners auto insurance policy limits. Typically, non-owner car insurance won't have a deductible, so you won't have to pay anything out of your own pocket before your coverage kicks in.

A Real-Life Example

Imagine you were driving a friend's car and got into an accident. Your friend's insurance company had a policy limit of $10,000 to cover the damage, but the repairs cost $20,000.

In that case, you'd be responsible for the extra $10,000. If you had non-owner insurance with at least $20,000 of property damage liability coverage, that amount would be covered.

What does Non-Owner Car Insurance Cover?

Non-owner car insurance helps cover property damage to other people’s vehicles and properties should you damage them in a collision. It typically provides liability insurance coverage for any bodily injuries you cause in a vehicle you don’t own.

Some insurance companies may also allow you to add on medical payments coverage, personal injury protection and uninsured motorist and underinsured motorist coverage.

What Does Non-Owners Insurance Not Cover?

A Non-owner car insurance policy will not provide collision coverage for damage to the vehicle you are driving. It also lacks coverage for any injuries you sustain or damage to your property following a collision. It is strictly liability coverage.

The policy will not cover other areas, including rental reimbursement or towing services. This is because the non-owner coverage is not attached to a specific vehicle; it is only connected to you as the driver.

If you are using a non-owned insurance policy with your rental car, the rental company can offer other coverage options.

Who Needs Non-Owner Auto Insurance?

Consider purchasing non-owner insurance if you fall into one of these categories listed below.

You can’t afford a car but still have to drive

If you drive vehicles you don’t own, you need to be insured with at least the states minimum liability insurance. Non-owner insurance can meet this requirement at a lower cost than standard auto insurance.

You’re in between vehicles

Canceling your policy will show coverage gaps in on your auto insurance record. This will often raise your future insurance premiums. Non-owner coverage provides this without insuring a specific vehicle.

You Frequently Borrow cars

Suppose you borrow a friend’s car often or even from your employer. In that case, you need to carry a liability car insurance policy. It is required by almost every state when you borrow a car. You never know when an accident can occur in a borrowed car. Non-owner insurance can help you fulfill your responsibility as a driver when car-sharing.

Fulfilling Financial Responsibility Requirements

After a DUI or a major traffic violation, your state will often require you to get a SR-22 proof of insurance certificate. If you do not own a car a non-owners SR-22 filing fulfils this court ordered requirement.

You Frequently Rent Cars

Frequent renters save money with a non-owned car insurance policy than getting rental car insurance or using protection from your credit cards when you rent a car.

When Do You Not Need Non-Owner Insurance

Now, there are definitely some situations where you don't need a non-owner policy:

• You live with the car owner: If you borrow a car from someone you live with, that person should be able to list you as a driver on their policy, so you don't need a non-owner policy.

• You rarely ever drive: Depending on the car owner's insurance policy, they might have a permissive use policy that lets friends and family members drive their car from time to time, without needing their own insurance.

Non-Owner Car Insurance Cost

Non-owner insurance is generally a lot cheaper than a standard auto policy. Non-owner premiums typically range from $200-$500 per year, while standard vehicle insurance policies can cost upwards of $1500 a year.

Of course, there are a lot of different factors that go into determining your insurance premiums.

These include your driving history, your age, where you live, and how often you plan to drive. High-risk drivers, like those with a DUI on their record, will always face higher insurance rates.

How Do You Buy A Non-Owner Insurance Policy?

You can buy a non-owner car insurance policy right from your auto insurance company or by giving Insurance Navy a call to talk to one of our agents.

First, though, check what your state requires in terms of minimum coverage limits, this can change from one state to another.

If you happen to need an SR-22, your insurance provider will file that for you with the state while buying your non-owner insurance policy. This is actually a big help in getting your driver's license reinstated.

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