Non-Owner Car Insurance: What You Need to Know

You know that you need auto insurance if you own a car, but what if you have your license and don’t own a vehicle? Do you need car insurance to drive? What if you borrow a friend’s car and get in an accident? Are you insured under their policy? 

Do not leave yourself stressed out facing these unanswered questions. If you don’t own a car but want to be sure you are protected when you drive, you may want to consider non-owner insurance. 

What is Non-Owners Car Insurance?

Non-owner car insurance is a type of insurance coverage that provides liability protection for drivers who do not own a vehicle. Liability coverage would help to pay for property damage or bodily injury inflicted on another party as a result of an accident that you cause. 

The benefit of a non-owners policy is that it is more affordable than a standard policy since there is no vehicle to insure. It is also likely that the insured will be driving less frequently since they do not own a car. 

Who Should Invest in Non-Owners Car Insurance?

Non-owners car insurance would be a good fit for you if any of the following situations apply:

• You use car-sharing services or rent cars regularly.

If you rent cars frequently or use services like ZipCar, you may be shelling out a lot of money for insurance coverage at the rental counter. It could be more cost-effective to invest in non-owner insurance, so you have universal protection.

• You need to file an SR-22.

If you have lost your license due to a DUI or another serious traffic violation, you may be required to file an SR-22 with your state. An SR-22 is a form that certifies you have the minimum liability insurance coverage required by state law. If you do not own a vehicle but want to reinstate your license, the only way to get liability coverage would be with a non-owner SR-22 insurance policy.

• You are a new driver, and no one in your home owns a vehicle.

Young drivers insurance can be expensive because inexperienced drivers are a high-risk to insurance companies. If you or your child recently got a license and you are seeking the cheapest coverage for young drivers, then a non-owners policy may be an option if no one in your household owns a vehicle. 

• If you want to avoid a lapse in coverage.

Insurance premiums typically increase when a driver reinstates a policy following a gap in coverage. If you are planning to sell your vehicle, but want to avoid paying higher premiums in the future, then a non-owners policy could be an excellent option to prevent a lapse. 

What Isn’t Covered Under Non-Owner Insurance?

• Any protection for the vehicle you are driving.

While you will have liability protection with non-owners insurance, you will not have comprehensive or collision coverage to help pay for any damages you cause to the vehicle you are driving.

• If you drive a car owned by someone in your household.

If you regularly borrow a vehicle of a family member or friend that you live with, then your best bet is to be added as a driver on their existing auto insurance policy. 

How Do You Get Non-Owner Insurance?

It is important to note as you begin your search for non-owner insurance that not every company offers a non-owners policy. You also might not be able to get a quote for a non-owners policy online, so your best bet would be to call a company to learn more about your options.  

When you call for a quote you should have the following items on-hand:

• Driver’s license number
• Credit or debit card
• A record of your driving history

Non-owners policies are relatively easy to obtain once you find a reputable company that offers this type of policy. 

Vern Fonk can help you find car insurance in Washington, Oregon, and Idaho at a great price, even if you have a less than perfect driving record. Get a free car insurance quote online, over the phone, or at one of our offices near you.