Non-Owner Car Insurance – Best Explanation

Are you looking for non-owner car insurance? Then you should use someone else vehicle regularly. Non-owner car insurance will cover the driver’s liability, and this will be very useful for when somebody usually rent vehicles. Not only that but also, drivers who need to keep their driver’s license are required to carry liability insurance.

I have been working in the auto insurance field for 15 years. In this article, you are going to learn about non-owner car insurance. I will use all the experience I have about this topic to express everything you should know.

Introduction

In short non-owner, car insurance will protect drivers from an at-fault accident that happened while driving someone else vehicle. Therefore, drivers must include all vehicles either owned or used frequently on their commercial auto policy.

Who Wants Non-Owner Car Insurance?

If you own a vehicle find an auto insurance policy and if you don’t own a car then you might need to consider having non-owner insurance if these situations apply;

You Drive Someone Else’s Vehicle Regularly

Usually, when you drive someone else’s vehicle, their auto insurance policy covers you. Non-owner insurance is an expansion of the owner’s policy’s liability coverage.

When you drive someone else vehicle and you have engaged in an at-fault accident owner’s policy will pay the damage to exceed. In the meantime, your non-owner insurance will pay the remaining.

Your non-owner insurance will make sure to have sufficient protection so that you don’t have to pay by yourself in the event of an at-fault accident.

You’re in Between Vehicles

If you become careless while shopping or saving up for a new car after your car totaled or died then, you have to maintain insurance coverage if you don’t want to see your premiums increase when you buy a new vehicle.

Nevertheless, if you let your car insurance coverage lapse for even a short time frame, then your insurance company will be considered you as a high risk. Therefore you will be charged higher rates when you buy a new vehicle with a new policy. Non-owner insurance will fill that gap and inform your insurance firm that you have gone through some difficulties of staying covered repeatedly.

You Rent Vehicles Regularly

Most states in the U.S require you to hold liability insurance when renting vehicles. But purchasing non-owner policy in case of liability coverage is the cheapest way to protect yourself when you rent vehicles for more than a week or year. Because liability insurance usually costly and covers less than a non-owner policy.

After a DUI You Required a to Have an Insurance

DUI has a critical consequence, whether it’s an accident or not. However, relying on the severity of the incident, your license can be revoked for some time. Then you have to fill SR-22 form if you want to get back your driving privileges reinstated and get back to the road. SR-22 is not an auto insurance policy; it is a certificate drivers fill when they are in trouble as a driver.

Let’s think you don’t have a license; still, you aren’t allowed to drive on the road. However, if you have non-owner auto insurance, the law will accept that policy, which proves you have some sort of protection till your license reinstated.

Finally, drivers who need to keep their driver’s license are also required to carry liability insurance.

Who Doesn’t Want Non-Owner Insurance?

You might be wondering whether there are times that non-owner insurance doesn’t need? Yes, there are a few occasions which non-owner insurance doesn’t make any sense like;  

When You Borrow Someone Else Vehicles Rarely

It is worthless having non-owner car insurance if you hire someone’s vehicle very rarely. Because no matter how cheap it is taking out a whole policy and pay premiums regularly, it is a waste of money. Therefore, try to avoid non-owner insurance and look if you can add as a driver on the vehicle owner’s insurance policy.

When You Borrow a Vehicle for an Extended Period

Someone can leave their vehicle with you for several months. Therefore you begin to veer into insurance coverage needs, which a non-owner insurance policy cannot meet.

In this situation, you are the primary driver, not the owner of the vehicle. Also, a regular Insurance policy even for one season would offer the mandatory collision, comprehensive and liability coverage missing from a non-owner auto insurance policy. 

Borrow a Car From Someone in Your House

When you live with someone whose vehicle you are regularly borrowing, you should definitely cover and listed on their insurance policy. If you drive someone else vehicle without the correct insurance coverage is a criminal offense. 

In this case, taking separate non-owner car insurance policy isn’t going to help you.

When You Own a Vehicle

Isn’t it obvious if you own a vehicle, you don’t need non-owner car insurance. Because it doesn’t offer the right protection for your needs, therefore, you should go for a standard auto insurance policy instead of a non-owner insurance policy.

Teenage girl who has non-owner car insurance driving a rented car
People who rent vehicles regularly need non-owner car insurance

What Does Non-Owner Car Insurance Cover?

Non-owner car insurance is not going to protect the policyholder’s vehicle like standard auto insurance policies. It will often be limited to liability coverage. Therefore, it covers property damage or bodily injury that different individual suffers from an accident you caused. 

However, you may add these coverages to a non-owner auto insurance policy;

Bodily Injury Coverage

If you engaged in an at-fault car accident in which someone severely injured, then this bodily injury coverage will cover their medical expenses and lost wages. Not only that, but also it will help you pay your legal charges too.

Property Damage liability coverage

This insurance coverage helps cover damages you caused to someone’s vehicle or property if you were at fault for the accident. Also, this is insurance protection for vehicles that you don’t own. 

Under-insured/Uninsured Motorist Insurance Coverage

If you or your passengers injured in a vehicle accident and if the opposition driver doesn’t have auto insurance protection to cover your damage, then this insurance coverage will cover your cost.

PIP (Personal Injury Protection)

This insurance coverage covers you and your passenger’s medical funds and rehabilitation expenses when injured. Also, this will cover and pay related fees like lost wages too.

What Does Non-Owner Insurance Not Include?

There are no vehicles insured under the non-owner car insurance policy. Therefore it does not include the other coverages which are often part of an auto insurance full coverage like;

Comprehensive Coverage

Comprehensive coverage covers all the vehicle damages that happen by events that are out of your control. For instance, it covers costs like fire, theft, vandalism, animal accidents, glass and windshield damage, and damages that occur due to weather or nature.

Collision Coverage

The collision insurance coverage covers your vehicle damage after a collision. You can replace your vehicle, But this coverage does not include someone else bodily injury or vehicle damage.

Road Side Assistance

This coverage covers drivers when the vehicle breaks down or leave you stranded. For example, Flat tire changes, jump-start, fuel delivery, towing, lockout service, extraction, and battery services.

Usually, non-owner car insurance is about liability only. Therefore, it will not cover the damages that happened to your vehicle after an accident. Also, you can’t add the driver to your insurance policy. The non-owner insurance policy only covers you and vehicle damages of the opposite drivers.

Finally, non-owner car insurance doesn’t usually cover “Towing insurance” and “Rental reimbursement,” too.

Finest Car Insurance Company for Non-Owner Car Insurance in 2020

Auto insurance policy cost differs from various ways and is relies on particular elements like your age, location, driving history, credit score, etc. But, non-owner insurance policy is such a limited form of insurance. Usually, it is going to cheap car insurance than a standard auto insurance policy. 

Insurance Company Avg. Price
Farmers $521
Geico $311
Allstate $638
State Farm $408
Progressive   $576
Nationwide $677
Finest Car Insurance Company for Non-Owner Car Insurance in 2020

Source from: www.thesimpledollar.com

Each of these mentioned companies provides non-owner auto insurance plans in all 50 states in the USA.

FAQ About This Topic

Non-owner, nonowner, non owner, non owners, Are all of these the same?

Yes, of course, you can say or spell differently, but all of these speak about the same insurance coverage.

Can Drivers Rent a Vehicle with Non-Owner Insurance?

Yes. After you rent a car, non-owner insurance supply coverage for them. It will be a pretty good idea to have non-owner insurance if you rent a vehicle.

Is Non-owner Auto Insurance Available in My State?

The answer is yes to this question. Non-owner insurance is available in all 50 states in the USA. The rate will vary depending on where you live, but most of the insurance policies include a similar type of insurance coverage.

What Are The Top Reasons to Buy Non-owner?

  1. You required carrying liability insurance to show proof of insurance.
  2. You are in between vehicles.
  3. You can’t afford a vehicle, but you desperately need to drive.
  4. You borrow someone’s car frequently.
  5. You rent vehicles regularly.

Conclusion

If you read this article entirely now, you know everything you should learn about non-owner car insurance. Renting a vehicle or trying to avoid a gap in your insurance history will be useful having non-owner insurance when required to cover you in the event of an accident.

However, all insurance companies do not provide non-owner insurance coverage. Try to compare quotes from all insurance providers if you want to purchase this insurance coverage.

While comparing rates, do not forget to look at the supplied protections to get the most valuable insurance policy for you. Finally, to have the best prices shop around for every year possible.

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