If you don’t own a vehicle but drive on a regular basis, it may be a good idea to get a non-owner auto insurance policy. By doing so, you can protect yourself against losses that result from an accident you cause with someone else’s car. If you live in Texas, you may be wondering if it’s mandatory for drivers who don’t have vehicles to carry non-owner auto insurance. Check out this comprehensive guide to non-owner car insurance in Texas.
What Is Non-Owner Auto Insurance?
Non-owner auto insurance is a type of liability car insurance that covers drivers who don’t own a vehicle. It pays for other drivers’ medical expenses and vehicle repair costs when you cause an accident while driving someone else’s car.
According to Insurance.com, a non-owner car insurance policy generally serves as secondary coverage if the vehicle owner doesn’t have enough insurance to pay for all of the medical and repair bills that result from the accident. This means the auto insurance policy on the vehicle you’re driving will be used first and then your non-owner policy will come into play if you have higher liability coverage limits than the car owner.
What Does a Non-Owner Auto Insurance Policy Cover?
In general, a non-owner car insurance policy only covers liability. It pays for injuries and property damage you’re liable for in an accident that’s your fault. This type of auto insurance won’t cover your injuries and damage to the vehicle you’re driving if you’re the responsible party in an accident.
Some auto insurance companies offer non-owner policies that cover rental cars. If you plan to purchase a car insurance policy to protect yourself when renting a vehicle, make sure you check with your insurance provider to confirm the policy includes rental cars. You should know that it’s generally mandatory for car rental companies to have at least the state minimum liability insurance for their vehicles.
When Is It Beneficial to Get a Non-Owner Car Insurance Policy?
You can use your non-owner auto liability insurance as secondary coverage if you drive someone else’s vehicle and get into an accident. The auto insurance policy of the car owner will serve as the primary coverage. It’s a good idea to carry this type of insurance if you regularly need to borrow a car.
Also, if you’re planning to have a gap in owning a vehicle, you can get a non-owner car insurance policy to prevent a coverage lapse. Continuously maintaining auto insurance coverage can help you qualify for discounted rates and avoid premium hikes usually given to drivers with a gap in coverage.
In some cases, you may consider buying a non-owner car insurance policy even if you own a vehicle. For instance, if you need to file an SR-22 certificate but your current insurer doesn’t offer it, you can meet this obligation by obtaining a supplementary non-owner policy from another carrier. Since the secondary policy won’t cover your vehicle, using this strategy can lead to lower costs.
Do You Need Non-Owner Auto Insurance to Drive Someone Else’s Car in Texas?
In Texas, you aren’t legally required to have non-owner auto insurance to drive someone else’s vehicle if the owner is insured. Generally, losses that result from an accident will be covered under the car owner’s policy. Nonetheless, even if the owner has auto insurance, the level of protection you have depends on the coverage limits they’ve chosen. If you borrow the vehicle on a regular basis, you may want to buy your own non-owner car insurance so that you’ll have peace of mind knowing you’re well-protected against liability.
Non-owner auto insurance is available to Texan drivers who meet the following requirements:
- Possess a valid driver’s license or can obtain one within 30 days by getting car insurance
- Don’t own a vehicle
- Don’t have regular access to a vehicle belonging to a household member
If you frequently borrow a vehicle from somebody in your household, they’re required to add you to the list of drivers on their auto insurance policy. Generally, non-owner car insurance doesn’t apply in this situation.
In Texas, a non-owner car insurance policy will have at least the minimum liability coverage required in the state, which includes:
- Per-person bodily injury liability coverage: $30,000
- Per-accident bodily injury liability coverage: $60,000
- Property damage coverage: $25,000
These coverage limits are considered modest. You may want to get higher limits to better protect yourself in the event of an accident.
However, you should know that non-owner auto insurance doesn’t cover you or your vehicle, meaning it doesn’t include collision coverage, comprehensive coverage, medical payments coverage, rental car coverage, and roadside assistance. However, it can be beneficial to have non-owner insurance in certain situations.
When Should You Consider Buying Non-Owner Auto Insurance in Texas?
Getting non-owner car insurance in Texas may be a good move in the following situations:
- You borrow someone else’s vehicle on a regular basis.
- You’re participating in a ridesharing program such as Zipcar and prefer to have additional insurance coverage on top of what the program includes.
- You rent vehicles frequently and want more coverage than the minimum liability insurance that car rental companies provide.
- You’re in the process of buying a new car after selling your old one and want to avoid a premium increase, which is likely to occur following a lapse in coverage.
- You need SR-22 insurance to reinstate your suspended driver’s license.
How Much Does It Cost to Get Non-Owner Car Insurance in Texas?
According to WalletHub, the average cost of a non-owner auto insurance policy in Texas is about $500, which is close to the middle among states. Prices may vary from one insurance provider to another, so you should shop around to find the best deals. Bear in mind that most insurance companies in Texas don’t provide online quotes for non-owner auto insurance. You’ll have to call insurers to get a quote for your specific situation.
While it may only serve as supplementary coverage, non-owner auto insurance can help you avoid a financial disaster if you cause an accident with someone else’s vehicle. So, you should consider buying this type of coverage if you frequently drive another person’s vehicle.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Non owner car insurance guide | insurance.com
Do I need non-owner car insurance in Texas to drive someone else’s car? | wallethub.com
Car Insurance Basics: Everything You Need to Know | caranddriver.com
Car Insurance Premium | caranddriver.com
Everything You Need to Know to Shop for Car Insurance | caranddriver.com
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