Non-Owner Car Insurance: What It Covers And Where To Buy

Non-owner car insurance otherwise called a non-drivers insurance plan is a scheme that is designed for anyone who regularly drives a car that doesn’t belong to them, or needs to prove a coverage plan.

This car insurance policy offers liability coverage when you don’t own a car but drives one that is not yours. Liability coverage caters for property damage and injuries that others experienced as a result of a car accident.

Besides, the non-owner car insurance policy does not cater for damages to the car that is rented or borrowed neither does it cover for any injury you sustain after a crash. However, this type of insurance policy is not the ideal type if you borrowed a car from someone in your home or a relative – you should be under the car owner’s plan.

So, based on your state or insurer, this might be needed even if the car belongs to an unfamiliar person, and if you presently do not have a valid driver’s license.

What Non-Owner Car Insurance Policy Covers

Other areas covered by the non-owner auto insurance include;

Underinsured or uninsured motorist liability plan which makes payment if you are injured after a crash involving a driver without enough or any liability insurance cover.

Personal injury protection or medical paymentNon-owner car insurance otherwise called a non-drivers insurance plan is a scheme that is designed for anyone who regularly drives a car that doesn’t belong to them, or needs to prove a coverage plan.s coverage which pays for your injuries after a crash irrespective of the person at fault

Liability coverage for injuries and property damage caused to others not involving your passengers.

The non-owner policy makes it possible to buy different liability limits. If your state has requested that you file an FR-44 or SR-22 financial form, the state has the power to determine the amount of liability coverage you should get.

However, a non-owner auto insurance policy can cover for uninsured motorist or medical coverage. So, non-owner insurance does not include the following coverage plans;

  • Reimbursement of rentals
  • Collision
  • Comprehensive cover
  • Towing reimbursement payment

Also, the non-owner liability cover can serve as secondary coverage if you borrow a car and get involved in an auto crash – the car owner’s car insurance serves as the primary insurance plan. Some insurers offer a non-owner car insurance plan that can also cover rental cars.

So, if you get non-owner auto insurance to cover you anytime you rent a vehicle, ensure you confirm with your company if the plan covers rental cars. So, note that companies that rent cars are under obligations by law to offer minimum liability coverage for their cars.

How To Buy Non-Owner Car Insurance plan

To buy non-owner car insurance, there is a need to have a debit or a credit card, and a driver’s license number. Proof of insurance can be gotten instantly through email and your preferred insurance company can then file an SR-22 or other state form for you.

The following steps should be adhered to when buying a non-owner auto insurance plan

  • Get in touch with an auto insurance agent about the plan. If non-owner SR-22 insurance is needed, provide your state notification number where applicable (not needed in all states)
  • Provide all basic driving history
  • Get details on available insurance rate quotes and companies
  • Pick the insurance company and quote that suits your needs
  • Make a down payment to start the coverage. The amount varies from state to state and from one company to another
  • The agent makes the purchase and files an SR-22 directly with the state where necessary.

Non-Owner Car Insurance Companies

The following carriers are available for your insurance policy but note that they are not available in all states.

  • Nationwide
  • Allstate
  • Progressive
  • Geico
  • The General
  • Infinity
  • Direct Auto Insurance
  • State Farm
  • Dairyland Insurance
  • Safe Auto
  • Acceptance Insurance
  • Liberty Mutual
  • Travelers
  • Farmers
  • American family

What Is The Cost Of A Non-Owner Insurance Plan?

The price of non-owner insurance policy varies based on the following;

  • Where you are resident
  • How frequently you drive
  • The limit of your coverage
  • Driving history

Therefore, it has been discovered that a non-owner policy is 5% – 15% cheaper than a standard plan that has the same level of coverage.

Companies With The Cheapest Non-Owner Car Insurance Plan

Comparing quotes from at least three companies would enable you to see the company with the lowest rate. From the table below, Geico offers the cheapest rate for a non-owner car plan.

COMPANY YEARLY RATE CALL FOR QUOTE
Geico $311 800-207-7847
State Farm $408 800-782-8332
Farmers $521 888-327-6335
Progressive $576 855-347-3939
Allstate $638 800-255-7828
Nationwide $677 877-669-6877

If you rent cars regularly – The non-owner plan might be cheaper than getting liability coverage. This would not cover damage to the rental but the coverage is guaranteed through the process of buying a collision damage waiver from theif you rent cars regularly – The non-owner plan might be cheaper than getting liability coverage. This would not cover damage to the rental but the coverage is guaranteed through the process of buying a collision damage waiver from the rental company or through the use of a credit card.rental company or through the use of a credit card.

 

Who Needs Non-Owner Car Insurance Plan

The following categories of people need this car insurance policy;

If you rent cars regularly – The non-owner plan might be cheaper than getting liability coverage. This would not cover damage to the rental but the coverage is guaranteed through the process of buying a collision damage waiver from the rental company or through the use of a credit card.

Want to have a continuous car insurance coverage – Operating without coverage makes you appear risky before any insurer resulting in higher rates when you eventually buy a vehicle

There is a need for filing an SR-22 on your behalf – You would need an FR-44 form in Virginia and Florida to reinstate your driver’s license. Usually, the forms Fr-44 is filed by insurers and prove stand as proof that you own car insurance after conviction such as DUI.

If you frequently borrow people’s car – The car owner’s insurance usually makes payment after an accident. However, if the cost is more than the owner’s liability limit, then you will be on the hook for the balance.

Makes use of services like Car2Go or Zipcar – Having a non-owner plan shares part of the liability cover the car-sharing company offers. That is, the minimum amount required in your state. However, if there is bad wreckage, the amount is usually more than those limits and you will be responsible for it.

If your state insists on insurance to get or reinstate a driver’s license – Some states usually do this as proof of financial responsibility, which is backed up by law.

 

 

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