What Is Non-Owner Car Insurance?
Non-owner car insurance is a type of coverage that protects you financially when you drive someone else's car. This coverage does not provide the comprehensive protection of a full-coverage auto policy, but it does assist in the payment of costs when you are at fault in an accident.
What Is Non-Owner Car Insurance?
A specific vehicle is covered by standard auto insurance. If you buy a new car, you'll need a policy that covers you or a member of your household when you get behind the wheel. For example, if you are driving your car and cause an accident, your policy's property liability coverage will assist in paying to repair the other driver's vehicle.
- Non-owner auto insurance is typically inexpensive, but it is not available everywhere or by all insurance companies. Non-owner policies are not required for all drivers. However, if you don't own a car and frequently borrow one from a family member or friend, you may want this type of coverage.
Non-owner auto insurance does not cover a specific vehicle, but rather a specific person. Assume you have a non-owner car insurance policy because you frequently borrow a friend's car. If you cause an accident while driving it, your policy may pay for the other driver's vehicle to be repaired.
Because non-owner car insurance is tied to the policyholder, you're covered regardless of which vehicle you drive.
How Does Non-Owner Car Insurance Work?
Non-owner car insurance policies typically include liability coverage with no deductible. Secondary coverage is provided by this type of auto insurance. In the event of a collision, the automobile owner's car insurance policy must pay first, and if it does not cover all costs, your non-owner policy takes over.
Non-owner auto insurance, on the other hand, only covers liability. So, if you total someone's car and the owner does not have collision insurance, you may be responsible for replacing their car. Non-owner policies also do not include optional coverages like rental reimbursement and towing because they cover a person rather than a specific vehicle.
Non-owner car insurance policies must meet certain minimum standards. Missouri drivers, for example, must have at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage liability coverage per accident. So, if you buy a non-owner policy in Missouri, it must meet or exceed those minimum coverage levels.
What Does Non-Owner Car Insurance Cover?
Non-owner car insurance covers only bodily injury liability and property damage liability. If you cause an accident, your policy's property damage liability coverage will help pay for the other driver's car to be repaired. Similarly, if the other driver is injured, your non-owner bodily injury liability coverage may assist in covering their medical expenses.
When writing non-owner auto insurance policies, some insurers also include medical payments and uninsured and underinsured motorist bodily injury coverage.
What Isn’t Covered by Non-Owner Car Insurance?
Non-owner auto insurance does not include collision, comprehensive, or medical payments coverages, so it does not protect you or your passengers, as well as the car you borrow.
Furthermore, if your car is stolen while it is in your possession, your non-owner policy will not cover the cost of replacing it.
Who Needs Non-Owner Car Insurance?
Non-owner auto insurance is not required for all drivers. Those who may do so include:
- People who frequently borrow cars but do not own one.
- Drivers who frequently rent cars and want liability protection that exceeds the rental company's coverage.
- People who frequently rent vehicles but do not want to purchase the rental company's liability coverage.
Businesses that require employees to use their personal vehicles for work purposes may benefit from carrying a non-owner car insurance policy in the event of an accident on the job. All employee-owned vehicles should also be covered under a commercial auto insurance policy.
Who Doesn’t Need Non-Owner Car Insurance?
Non-owner auto insurance is not required for drivers who own a vehicle, have all required insurance coverages, and rarely borrow or rent a vehicle.
How To Get Non-Owner Car Insurance
Non-owner policies are available from some, but not all, auto insurance companies. Check with your agent to see if your provider provides this coverage.
Obtaining non-owner car insurance is similar to obtaining any other type of insurance. You can enroll in the insurance company online or by phone. You provide important details and receive a quote. You can accept the policy if you agree to the terms. You will then begin making regular premium payments and will be covered.
How Much Does Non-Owner Car Insurance Cost?
Non-owner auto insurance policies are typically less expensive than standard policies' liability coverage. Rates can differ based on a driver's driving history, coverage levels, and location. High-risk drivers, like those with standard policies, pay higher non-owner premiums than lower-risk drivers. Non-owner policies typically do not have deductibles.
What Is SR22 Insurance?
The SR22, also known as a certificate of financial responsibility or FR44, is not insurance. It's a form that certifies you have the required minimum auto liability coverage in your state. In some cases, courts order drivers to submit an SR22. Typically, a court will notify you that you must attend a hearing, after which a judge will order the filing of an SR22.
A court may order you to file an SR22 for a variety of reasons, including:
- Driving without adequate insurance protection
- Conviction for DUI
- Excessive at-fault collisions
- Excessive driving citations issued in a short period of time
- Nonpayment of child support
- Having a hardship license after your driver's license has been revoked or suspended
Typically, your insurance company can file an SR22 and add the endorsement to your policy on your behalf. If your insurer does not provide an SR22 endorsement, you must obtain a new policy from another insurer who does. The cost of filing an SR22 varies, but it is usually around $25. Drivers who are required to submit an SR22 must typically maintain coverage for a specified period of time.
Drivers who fail to submit an SR22 and are required to do so may have their driver's license and automobile registration suspended.
Frequently Asked Questions (FAQs)
How much is non-owner car insurance?
Non-owner auto insurance policies are typically less expensive than comparable liability coverages in standard car insurance policies. Rates are determined by factors such as a driver's coverage limits, driving history, and location. The majority of non-owner car insurance policies do not require a deductible. High-risk drivers pay higher policy rates, just like regular drivers.
Where can I get non-owner car insurance?
Insurance companies provide non-owner car insurance. Non-owner auto insurance is not available from all insurers. Check with your insurance agent to see if your company provides the coverage.
Which is cheaper, non-owner, or non-drivable car insurance?
A non-drivable vehicle with a salvage title cannot be insured. However, if you restore the vehicle to roadworthy condition, it may be eligible for a rebuilt title. Insurers frequently charge higher rates or refuse to insure cars with rebuilt titles because they pose a higher risk. Non-owner car insurance rates, on the other hand, are typically lower than comparable coverage offered in standard auto policies. A non-owner auto insurance policy is typically less expensive than a policy for a rebuilt vehicle.