What Is Non-Owner Car Insurance?
A non-owner car insurance policy provides liability coverage for drivers without cars. A typical non-owner policy includes bodily injury liability and property damage liability coverage. Depending on legal requirements where you live and what you choose, a non-owner policy could also include other coverages like medical payments coverage (med pay) or uninsured/underinsured motorist coverage (UM/UIM), according to Forbes.
However, a non-owner policy doesn’t typically include comprehensive, collision, rental reimbursement or towing because the policy is not attached to a specific vehicle.
If you don’t own a car but frequently use one, look at the circumstances below to see if a non-owner policy is right for your situation.
What Does Non-Owner Car Insurance Cover?
Generally speaking, non-owner auto coverage provides financial protection if you’re driving a car you don’t own and cause an accident that injures others or damages their property. The policy’s liability coverage could help pay for others’ medical bills or damages to their vehicles and personal property.
Depending on state requirements and the specifics of your policy, you could also have additional coverage like med pay or UM/UIM. In one of these scenarios, med pay could provide coverage for your medical and related expenses resulting from a covered accident, regardless of fault. Uninsured/underinsured motorist coverage could help protect you financially if you’re involved in an accident with an uninsured driver or a driver who doesn’t have enough coverage for the damages.
Non-owner policies don’t generally include comprehensive or collision coverage, meaning there isn’t financial protection for any damages to the vehicle you’re driving.
Who Needs Non-Owner Car Insurance?
Experian suggests you might want or need a non-owner policy if:
- You’re required to file an SR-22 or an FR-44 with your state and don't own a car. In this case, a non-owner car insurance policy could help you satisfy legal requirements and help you reinstate or keep your driving privileges.
- You often rent cars or regularly borrow cars. When you don’t own the vehicle you’re driving or aren’t listed on the vehicle owner’s insurance policy, non-owner coverage could help protect you.
- You want to avoid having a gap in your insurance history. If you’re in between cars, non-owner auto insurance can help you maintain continuous coverage and could make it easier to find affordable insurance in the future.
Who Doesn't Need Non-Owner Car Insurance?
A non-owner car insurance policy may not be right for you if:
- You own a car. In this case, you’d purchase a traditional car insurance policy that complies with your state’s minimum coverage requirements.
- You don’t have a driver’s license and won’t be obtaining one. If you can’t legally drive a car and don’t plan on driving anytime soon, non-owner coverage might not make sense for your situation.
- You regularly drive a vehicle owned by someone in your household. Generally speaking, insurance companies require all household members to be listed on a car insurance policy. So, if you’re of driving age and have a license, there’s a good chance you may be listed as a driver on the policy. For example, a college student living with their parents is likely already listed as a driver on their parents’ car insurance.
How Much Is Non-Owner Car Insurance?
With an average annual cost of $200 to $500, a non-owner car insurance policy is generally more affordable than a traditional auto insurance policy, according to WalletHub. However, pricing is ultimately determined by several factors, including:
- State of residence: Every state has its own coverage requirements. Also, some states have densely populated cities where car accidents are more likely to occur. In other words, non-owner car insurance in Texas may have a different price than non-owner car insurance in California or North Carolina.
- Driving history: Insurers look at an applicant’s driving history to help determine price. A history of accidents and claims could lead to a higher rate, while a spotless driving record could lead to savings.
- Coverage options: Minimum coverage typically leads to lower prices, while adding coverages and increasing limits could lead to a higher rate.
- Age and experience: A teenager with little experience behind the wheel generally pays more for coverage than an experienced driver with a good driving record.
How To Get Non-Owner Car Insurance
Here are four quick steps to shopping for non-owner car insurance.
Determine Eligibility
First, evaluate your situation. Reread the bullet points above about who might need non-owner coverage and decide if it’s right for your situation.
Choose Coverage Options
Generally speaking, a non-owner auto insurance policy only provides minimum liability coverage. However, depending on where you live and the insurer, you may have the option to add additional coverage, like uninsured motorist coverage. See what’s available to you, and at what limits, to help decide what’s right for you.
Compare Quotes from Multiple Insurers
Don’t just get one non-owner car insurance quote and purchase a policy. Shop around and compare quotes to make sure you’re getting the best coverage at the best price. It’s worth noting that not all insurers offer non-owner coverage, according to Investopedia, so make sure to search carefully. Also, make sure you’re comparing the same coverages at the same limits to see which option is the best.
Finalize and Purchase
After you’ve done your research and shopped around, it’s time to purchase your desired policy. Depending on where you decide to purchase insurance, you may be able to complete your purchase online, over the phone or in person at a local store. You may also have the option to pay in full or sign up for a payment plan.
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Give us a call at 1-877-GO-DIRECT or visit a Direct Auto store to learn more and purchase a non-owner car insurance policy.
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