Car Insurance Policies For Non-Owners: You may not have a car but of course, it is very possible for you to have an auto insurance. Seems odd right? Non-owner car insurance is not only for People who own cars but for as many as that drives a car which may not be theirs, including rented cars.
Non-owner car insurance is a policy for people who do not own a car, but who need some liability coverage if they’re using someone else’s car, or for people who drive but do not have a car registered in their own name.
Some non-owner policies include financial protection, uninsured/underinsured motorist coverage and medical coverage.
Best Non-Owner Car Insurance
Titan Insurance offers non-owner insurance including liability coverage for someone operating a vehicle not owned by the person who is being insured. Titan provides non-owner insurance for someone who may be living in the same house as the person who’s insured. Its overall coverage is affordable.
Geico has few different options for someone who may not own a vehicle but needs coverage, which includes rental car insurance.
Rental car insurance is a good alternative for someone who does not have a regular auto insurance policy with rental car insurance being included, or who does not have insurance coverage from their credit card company. Someone who rents cars often might have to go with Geico if the already existing rental car coverage is limited.
The General, which is known for cheap auto insurance policies, offers non-owner insurance. The General offers insurance for drivers, who might have a record of accidents or violations, and drivers who do not have great credit, and also for drivers who have let their insurance lapse.
The General also works to make sure they keep their down payments low, and they offer very cheap monthly payment options.
What does non-owner car insurance cover?
A non-owner car insurance policy, otherwise known as non-drivers insurance, usually only provides minimum coverage. Typically, these policies include bodily injury and property damage liability coverage when you’re driving a vehicle that is not your own (but have a regular car insurance policy on).
If you borrow someone’s car and you get into in an accident, the vehicle owner’s car insurance pays out first. It may not be enough to cover damages, so your non-owner policy will kick in as secondary coverage. However, non-owner’s insurance doesn’t take care of collision coverage. So it will cover only the vehicle or piece of property you hit.
If you cause an accident and the other person is injured, bodily injury liability insurance will help cover his or her medical expenses. It will also cover some of your legal fees if you are taken to court. Similarly, property damage liability insurance helps you pay for damage done to someone’s vehicle or property if you were the one at fault for the accident.
Optional coverages normally associated with car insurance, like collision, comprehensive, towing, and rental reimbursement, are not available in non-owner policies. And this is because there is no specific vehicle for the policy to insure.
Some non-owner policies will also provide liability coverage for rental vehicles.
- The first thing to note is that non-owner insurance isn’t appropriate for drivers who live with the owner of the car that they’re driving; in that case, you need to be listed as a car’s primary policy.
- Secondly, this type of insurance doesn’t cover the damage done to the vehicle that you’re driving, as it is not assigned to any particular vehicle. And for this reason, it’s almost always less expensive than a typical car insurance policy, but you are responsible for the repair costs if you’re involved in an accident while driving a car that doesn’t belong to you.
When Do You Need Non-Owners Car Insurance?
Although the idea of having car insurance when you do not own a car may not seem necessary, there are circumstances where it’s a good idea for you to get a non-owner insurance:
- You frequently borrow or rent cars
If you sometimes drive someone else’s car, non-owner car insurance will be useful to you. If you are in an at-fault accident using your friend’s car, and you exceed the limit of their own car insurance policy, non-owner insurance would help you pay for any damages you still owe that your friend’s auto insurance couldn’t pay for.
- Your license has been revoked
Another situation would be If someone has a serious conviction that led to their license being taken or evoked, they may need to show they have car insurance to get their driver’s license back.
You’re between vehicles and want to avoid a lapse in coverage
Having lapses in your own insurance is a red-flag that inspires higher rates among insurers. To keep a low rate over the long term, sometimes it makes sense to get a non-owners policy.
When You Do Not Need Car Insurance
- You own a car. The non-owner car insurance policy is meant to insure drivers who do not have a vehicle of their own. If you are looking for a regular car insurance policy.
- You tend borrow the car of someone you live with. In this case, it’s best to get added to the owner’s policy rather than taking out your own policy.
- You rarely rent cars. You may not need to take on an insurance policy if you do not rent cars regularly.
- You drive for business use. There are commercial non-owner policies available through insurers that would be better for you.
Non-Owner Car Insurance Summary
Generally, there are some instances where you might consider a non-owner car insurance policy, but these situations are not common and not always necessary just because you do not have a car.
If you do decide that a non-owner insurance policy is of essence to you, do well to compare prices and expect to pay less than you would for a regular car insurance policy, although it goes with less coverage.