Even if you don’t own a car, you might still drive one, and if you are behind the wheel, you should have car insurance. Drivers who have a valid license are eligible for non-owner car insurance as long as they don’t have access to a vehicle in their household. Getting car insurance quotes without a car is as easy as contacting your local agent or calling an insurance company.
What Is Non-Owner Car Insurance?
According to Forbes, non-owner car insurance or non-driver insurance provides liability coverage for drivers who don’t own a car. It is liability coverage that pays for bodily injuries and property damages if you cause an accident while driving a car you don’t own.
In addition to the liability coverage, non-owner car insurance can include:
- Rental car liability coverage
- Medical payments
- Personal injury protection
- Underinsured or uninsured motorist liability
In many situations, the car owner’s insurance will be used first, but if it falls short, the non-owners policy will kick in to take care of damages over the owner’s liability limits. For example, say you have a non-owner’s policy with $40,000 in property damage liability and borrow a car. The car owner’s policy covers $20,000 in property damage liability. If you are in an accident and cause $40,000 in damages, the car owner’s policy won’t cover the extra $20,000. Your non-owner policy will come into play for the amount above the owner’s policy limits.
It’s important to note that non-owner coverage does not pay for damage to the car you were driving or your personal injuries.
You should consider non-owners insurance if you rent vehicles frequently or borrow a friend’s car regularly. It is also worth considering if you want to keep continuous coverage during a time when you might be traveling and don’t own a vehicle. This type of insurance is also used by high-risk drivers who need an SR-22 or FR-44 to keep their license.
How Much Does Non-Owner Car Insurance Cost?
The cost of non-owner car insurance depends on several factors. Insurance companies will consider:
- The amount of coverage
- Your driving history
- How often you plan to use a car
- Where you live
- Any incidents on your driving record
Non-owner auto insurance is less expensive than full coverage for a car, because the policy doesn’t cover repairs for the vehicle or a replacement. It’s also cheaper because insurers consider a non-owner less of a risk because they don’t drive as much and are less likely to file a claim.
The cost of non-owner insurance varies widely depending on the state. Some of the most expensive states to purchase this type of insurance include:
- Michigan
- New Jersey
- Rhode Island
The least expensive states for non-owner car insurance include:
- Iowa
- South Dakota
- Wisconsin
What Is Not Covered by Non-Owner Car Insurance?
Non-owner insurance does not include complete coverage and optional coverages such as comprehensive, collision, rental reimbursement, and towing reimbursement.
Some non-owner policies will cover rental vehicles while you drive them, but not every insurance company provides this type of coverage. Before buying non-owner coverage with the intention of using it while renting a car, check with the insurance company to make sure it covers you in the rental. It’s also important to note that rental companies are typically required by law to provide the state minimum liability coverage for their rental fleet, so even if you don’t have your own insurance, you still have some protection.
Who Should Carry Non-Owner Car Insurance?
According to NerdWallet, you should consider purchasing non-owner car insurance if:
- You will have a gap between selling a car and buying another vehicle. Insurers might increase your rates if you don’t have continuous coverage.
- You don’t have regular access to a vehicle. The definition of standard coverage depends on the insurer. Some consider regular access once a week, while others view it as just several times a month.
- You are considered a high-risk driver.
- You need to satisfy state filing requirements after a DUI or an accident.
Who Does Not Need Non-Owner Insurance?
According to ValuePenguin, you do not need to purchase non-owner insurance if:
- You own a car. You should purchase full coverage insurance instead.
- You have a business vehicle, or you drive a company car. The company should cover you and the vehicle in case of an accident.
- You don’t have a valid driver’s license. If you don’t have a license, there is no reason to have insurance.
- You are the primary driver of a vehicle.
- You rarely borrow or rent a vehicle. You don’t need your own insurance if you occasionally borrow and drive a friend’s car with their permission. Their insurance will cover damages.
How to Purchase Non-Owner Insurance
It is easy to purchase non-owner insurance. You just need your valid driver’s license number and payment. You’ll most likely have to call insurance companies because most don’t offer quotes for this insurance online. Just like with full coverage, you should call several companies to get quotes and compare. Once you decide on a carrier and purchase the policy, you can have the provider send you an email with proof of insurance if you need it right away.
If you need an SR-22, make sure you tell the insurer the state notification number and provide a basic driving history. The insurance company can file the form on your behalf.
Which Insurance Companies Offer Non-Owner Car Insurance?
Most major insurance companies offer car insurance quotes without a car, while others might refer you to nonstandard companies such as The General and Direct Insurance. Some of the companies you can contact include GEICO, State Farm, Farmers, Dairyland, Allstate, and Nationwide.
Many insurance companies don’t advertise that they offer non-owner car insurance, and some will only offer it to their existing customers. For example, Progressive doesn’t sell non-owner insurance as a new policy, but if you have coverage and sell your vehicle, you can choose their non-owners endorsement to maintain continuous coverage until you get another car.
With some research, you can easily get car insurance quotes without a car. Use insurance company websites to find out what coverage they offer or give their customer service number a call.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
What Is Non-Owner Car Insurance?
Non-Owner Car Insurance: Where to Buy and What It Covers
What Does Liability Insurance Cover?
Non Owner Car Insurance: What Is It and Who Should Have It?
Car Insurance Michigan: Everything You Need to Know
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