What is Non-Owner Insurance?
Non-owner auto insurance is a liability only policy for a person who drives a car but doesn't actually own it. It is also referred to as non-drivers insurance. This policy provides property damage liability and bodily injury liability protection in case you are involved in an accident that is your fault. This policy will protect you from lawsuits that could arise in an accident situation and will cover you just as a normal liability policy would. Here are some situations you might want a non-owner auto policy:
- You are renting or borrowing a vehicle
- Your license is suspended and you are trying to get it reinstated
- You are required to carry and SR-22 and do not own a car Non-owner insurance is normally cheaper than a normal liability auto insurance policy. The risk the insurance company takes is much so that savings is passed onto the customer. A Non-owner insurance policy does not cover personal medical bills or vehicle in case you have an accident.
Explaining What Non-Owners Insurance Covers
One popular reason to purchase a non-owner policy is if you do not currently own a car. Non-owner insurance covers the liability portion only. It will not cover comprehensive and collision coverage for your automobile. Insurance companies feel they do not know which vehicle the insured is driving so they do not want the risk of offering comprehensive and collision coverage. The cost of repairing or replacing a vehicle can be different depending on its year, make, and model. If you want the vehicle you are driving to be covered in case of an accident then we recommend you have the owner of that vehicle purchase full coverage insurance and then add you on as a driver. This is the safest way to ensure that you will be covered appropriately.
Non-Owner Insurance and Its Relation To SR-22 Insurance
An SR-22 is an automobile liability only auto insurance policy document required by the DMV for an insured who is considered a high risk driver. Some of the most common reasons that cause an SR-22 situation are DUI's or suspended licenses. SR-22 is not a true insurance coverage. When you are searching for quotes be sure and always disclose to the insurance company up front that you need and SR22 so they can give you an accurate rate.
Once you purchase your policy the insurance carrier will either text, email, mail, or print out a copy of the SR22 document. This is important to retain in your records because the DMV may request the copy from you. The insurer usually files this form with the state but we recommend you keeping a copy also in case the insurer fails to file it. You cannot file an SR22 yourself which is why you have to contact and auto insurance company to complete this policy on your behalf. This will help get your license reinstated in a quick manner.
What Coverages Am I Allowed To Add on My Non-Owners Policy?
Since you are not able to add comprehensive or collision coverage, in addition to this you may not add Rental Car Reimbursement or Roadside either. But here are some coverages you are able to add to your non owner policy:
- Medical Payments Coverage
- Uninsured Motorist Coverage
Non owner auto insurance is sold on a per-person basis. You cannot add on other drivers to this policy. Only the named insured can be listed as a covered driver. Non owners policies do not have a deductible. A deductible is the part the insured is financially responsible for in the event of an accident which is usually either $500 or $1000. This is because non owners insurance is usually considered a secondary form of insurance coverage and the insurance on the actual car would be the primary coverage in the event of an accident. Here is an example of a situation where this would come in to play. Let's say you purchase a non owners insurance policy of 25-50-25 limits of liability through Progressive and the car that you are driving is insured with Geico also on the state minimum limits. You hit a Bentley and do $50,000 worth of damages. Geico would pay the first $25,000 of damages exhausting the max limits on their policy. So, then you non owner's policy would kick in and be the secondary form of insurance and pick up the remaining $25,000 of damages. This would protect you from the other party coming after you directly for the remaining $25,000.
How Much Should Non-Owner Auto Insurance Cost?
Non-owner auto insurance monthly costs are less than a regular Liability only policy by up to 20% and up to 60% cheaper than full coverage auto insurance. But rates will vary based on your driving record. If you are a higher risk driver with major tickets like a DUI or Driving While Suspended, then your cost may be quite a bit higher. When you call an auto insurance company and request a non-owner quote, that can be a very efficient way of lowering you monthly cost. It is important to remember to not purchase non owners insurance based on price alone, you need to purchase only when truly needed.
Non owner's quotes are just like any other quote you would get for regular auto insurance. Rates are based on Age, driving record and area you live in. If you live in a metro area like Houston than your non owners quote will be much higher than if you live in a smaller city like Sherman for example.
Do All Insurance Companies Offer Non-Owner Insurance? No, not all auto insurance companies offer non owner insurance. Below are three auto insurance carriers that offer non-owner insurance.
- Save Money Car Insurance
- The General
Do I need Non Owner’s coverage?
You are not legally required to carry a non owners insurance policy as far as the state is concerned. The vehicle you are driving is responsible for carrying an active auto insurance policy. But here are some good examples of situations a non owners car insurance policy will come in handy:
- Your rent cars on a regular basis
- You borrow other people’s cars on a regular basis
- If you sold your car or may be deployed overseas for a long period of time.
- If you need an SR22 for a DUI related situation.
Who should not purchase a non owner insurance policy?
- If you are a car owner
- If you borrow the car of a roommate
- If you rarely borrow a car from someone
- Usage of a company vehicle for company purposes only
How do I get a non owner car insurance quote?
Contact a local Independent Auto Insurance Broker and they can provide you with a free quote for a non owner insurance policy. A non owner insurance policy is normally cheaper than a standard auto insurance policy with a vehicle on it. Be sure to shop around as many different insurance companies as possible so you can find the lowest possible quote.
What does a non owners policy cover?
It covers a person for liability only coverage when they do not own a vehicle or that vehicle is inoperable. It can help you stay legal if driving a vehicle that doesn’t have insurance that you do not own. It is also commonly used for a person who is trying to get their license reinstated and doesn’t own a car. The non owner policy will suffice for the DMV to get your license reinstated.
What is the best way to find a non owners car insurance policy?
Many local “non standard” auto insurance agencies sell non owner insurance. Also, online quote comparison sites can provide you with a non-owners quote. Word of mouth is another good way to find non owners coverage, if you know someone who has had a non-owner policy, ask who they used for theirs. To get a non-owners quote click here!
How does non owners insurance work?
Non Owners insurance can often be a confusing policy. On many of these policies, companies will add an exclusion of coverage if the vehicle is driven on a regular basis for a long period of time. According to the Texas Department of Insurance, a "non-owner liability policy pays for damages and injuries you cause when driving a borrowed or rented car, but it doesn't pay for your injuries or damage to the car you are driving." Many customers use this coverage to simply get their license reinstated.
If you drive a vehicle on a regular basis and own the vehicle, it is best to actually insure that vehicle (rather than to purchase a non-owners insurance policy). Many times, Non-Owners Insurance is cheaper than a normal auto policy. That said, coverage is much more limited.
One of the things we do here at Cheapest Auto Insurance is help explain all your coverages so everyone can understand them. Feel free to give us a call or visit our local office to discuss a Non Owners Insurance Policy or any other questions you might have regarding auto insurance.
How to find cheap non owners insurance
Here at Cheapest Auto Insurance, we want to help you find the cheapest non owners insurance policy out there. So here are some tips we have found that can help you do that:
- Set you policy up on auto pay
- Sign up for paperless billing
- Receive quotes from numerous companies to make sure you are getting lowest rate
- Maintain a safe driving record
- Keep your policy continuous for 6 months straight
Non owner's insurance quotes are usually very quick and easy to get. You will just need your basic information on hand like your driver's license and then a method of payment in case you decide to purchase the policy. We were not able to find an auto insurance company that allows you to receive a non-owners quote via the internet. All the companies we found do require you to do the quote via phone with an agent.