The Ultimate Guide to Choosing Non-Owner Insurance
Are you looking for non-owner car insurance that fits your needs? Click here for the ultimate guide to choosing the right non-owner insurance.
Recent research suggests that there are about 12.6 million uninsured drivers in the US. This number could be reduced if more people knew about non owner insurance. If you don't own a car but drive regularly, you might want to look into vehicle insurance for yourself.
Read on to learn more about non owner automotive insurance and how it can meet your needs.
What Is Non Owner Insurance?
It is a way to provide coverage for drivers who don't own a vehicle but drive vehicles that belong to another person or business entity. It works great for people who frequently rent, share, or borrow vehicles. All you need in order to be eligible is to have a valid driver's license and not own a car.
How Does It Work?
Non owner automotive insurance provides the minimum coverage legally necessary to drive a car. It covers damages to the other party's vehicle as well as their medical bills if you cause an accident. Your own repair costs or medical bills are not covered.
They also include any mandatory coverage required, and allow you to add on additional types of insurance to suit your needs. Since this type of insurance doesn't cover a specific vehicle, comprehensive and collision coverage are not available.
What Does It Cover?
It usually offers the same quality of protection as a typical vehicle insurance policy. When you cause an accident, it will cover any necessary repairs or medical bills of the other party. It also helps cover collisions caused by motorists who have no insurance or are underinsured.
How Much Does It Cost?
Since people who want non owner car insurance policies typically drive less than average, the cost of a policy is usually much less expensive. Generally, it runs around $200 to $500 per year. However, that number can change based on a few factors.
Driving history, coverage, your location, and how much you drive will all factor into the final cost.
What Are Your Options?
While your basic non owner car insurance policy provides the basic minimum coverage for your state, that may not be enough. It's usually wise to get more than the bare minimum if you can afford it. Doing so helps keep you from paying out-of-pocket once your insurance cap is met.
Adding additional medical coverage for yourself can help if you're injured in an accident. Also, a higher property damage amount is useful when you're involved in an accident with a high-priced automobile.
When Do You Consider Non-Owner Car Insurance?
You never want to drive without insurance coverage. Not only is it illegal, but it can end up costing you much, much more in the long run.
You're In-Between Cars
If you plan to buy a car soon but don't have one now, non owner insurance can be a blessing. It allows you to maintain continuous coverage and remain a long-term customer. Car insurance companies tend to look kindly on customers with both of these attributes, often resulting in lower premiums later on.
It also provides you with coverage when you test drive vehicles. Once you buy, you need to contact your insurer immediately to switch over to an owner's policy.
You Need to Reinstate Your License
Sometimes a person's license gets suspended after a serious infraction or a DUI. Usually, you need to file an SR-22 to get your license back. Part of that includes proving that you have car insurance.
If you don't own a car, non owner insurance is likely your only option. Even if you plan to buy a car at some point, your non owner policy helps you get your license back sooner.
You Use Car Sharing Services
Car sharing companies have some insurance coverage built-in to their business. For example, Zipcar provides drivers with the minimum required insurance in their state. But, drivers still have to pay a $1,000 fee before the insurance coverage takes care of the rest.
Therefore, if the damage is $1,000 or less, you'll be paying out of pocket pretty much no matter what.
Some car sharing services offer lower deductibles or higher coverage for a yearly fee. With Zipcar, if you pay a $79 annual fee, you can have your $1,000 damage fee waived in the event of a collision.
When you buy your own non owner insurance policy, you're covered no matter which vehicle you drive. You do not have to rely on the service's insurance policy.
You Frequently Borrow a Car from Friends or Family
Most of the time when you drive someone else's car their insurance will cover you. However, the owner of the vehicle chooses the coverage they want - not the coverage you want. If they have comprehensive coverage - great!
If not, you might have to come out-of-pocket for damages that exceeds your friend or family member's insurance coverage. When you have your own policy, you can ensure you have adequate liability coverage.
You Rent Cars A Lot
Many states require car rental companies to provide the minimum legal amount of liability coverage as part of the rental fee. Not all states do, however. California does not require it, though many car rental companies choose to provide it anyway.
It's always important to ask what kind of coverage you're getting before you rent the car. The bare minimum isn't very much, and you can usually buy additional coverage at the counter. Be warned: the additional coverage can be expensive.
If you rent cars throughout the year, it might be cheaper to buy a non owner policy of your own than to rely on what the rental company has. Driving a car for a day or two here and there shouldn't be a problem. But, if you rent for more than 30 days a year, you might want your own policy to save money and enjoy greater coverage.
Choosing What's Best for You
Non owner insurance provides basic minimum liability coverage for people who do not own cars. There are multiple insurance options available that can increase your coverage if you feel more comfortable. Car renters, borrowers, or those who use a car sharing service can all benefit from their own non owner car insurance policy.
To learn more about your insurance options or SR-22 filing, check out our blog.