The Fine Line Between Non-Owned Auto Insurance And Owner Coverage

Non-owned auto insurance provides liability coverage for drivers who don't own a vehicle. This type of insurance is useful for those who frequently rent or borrow cars, or are required to carry liability insurance to keep their driver's license. Non-owned auto insurance covers bodily injury and property damage caused by the driver, but it does not cover damage to the vehicle being driven or the driver's own injuries. This type of insurance is typically cheaper than standard car insurance policies.

Non-owned auto insurance for businesses

Non-owned auto insurance is a crucial form of protection for businesses that rent, lease, or borrow vehicles, or have employees who use their own vehicles for work. It is a type of small business insurance that covers any vehicle used for commercial purposes that the business does not own.

Hired and non-owned auto insurance (HNOA) is an important policy for businesses to have in place, as commercial auto insurance only covers business-owned vehicles. HNOA insurance protects businesses from liability in the event of an accident involving a rented, leased, borrowed, or employee-owned vehicle.

For example, if an employee is driving their own car to meet a client and gets into an accident, their personal auto insurance won't cover work-related driving. The other party could sue to recoup medical expenses or repair costs, and without HNOA insurance, the business owner could be held personally liable.

HNOA insurance provides coverage for property damage liability and bodily injury liability. It can help pay for repairs to another person's vehicle, medical expenses for the injured party, and legal expenses if your business is sued for negligence.

It's important to note that HNOA insurance is typically offered as an add-on to a commercial auto or general liability insurance policy, rather than a standalone policy. Businesses should assess their unique risks and determine the appropriate coverage limits with the help of a professional insurance agent.

Non-owned auto insurance for individuals

Non-owned auto insurance is a type of liability insurance for individuals who don't own a vehicle but regularly borrow or rent other people's cars. It is also useful for those who need to file an SR-22 or FR-44 form with their state, which may be required to reinstate a driver's license after a serious conviction like a DUI. Non-owner insurance can be cheaper than purchasing liability coverage from a rental company every time you rent a vehicle. It is also a good option for those who use car-sharing services, as it provides liability coverage beyond what the company offers.

Non-owner insurance does not cover damage to the vehicle you are driving or your own injuries after an accident. It also does not extend coverage to anyone else living with you, unlike most standard policies. However, it can include medical payments, personal injury protection, and uninsured or underinsured motorist insurance coverage.

Non-owner insurance is typically less expensive than standard car insurance policies, as it only provides liability coverage. The price depends on your age, driving record, location, coverage limits, and other factors. To get a quote, you usually need to call an insurance company or agent, as quotes are not typically provided online.

Non-owner insurance is a good option for those who regularly drive without owning a vehicle, such as those who frequently rent cars, use car-sharing services, or borrow cars from people they don't live with. However, if you only drive occasionally or borrow a car from someone in your household, you may not need non-owner insurance. In these cases, it may be more cost-effective to rely on the car owner's insurance policy or purchase insurance from the rental company.

When you should get non-owned auto insurance

Non-owned auto insurance is a good option for those who don't own a vehicle but regularly drive cars they don't own, or who need to prove coverage. It is a type of liability insurance that covers bodily injury and property damage in the event of an accident. This means that if you are liable for damages or injuries in an accident, non-owned auto insurance will cover you. It is important to note that this type of insurance does not cover damage to the vehicle you are driving or your own injuries after an accident.

• You often borrow other people's cars: If you frequently borrow a car and don't have your own policy, a non-owned insurance policy can provide liability coverage for you. This is especially important if the car owner's insurance policy has low liability limits that may not fully cover an incident, or if you are denied coverage under the owner's policy.
• You use a car-sharing service: Non-owned insurance can be beneficial if you frequently use car-sharing or short-term rental services. These services often provide only the minimum required liability coverage, which may not be sufficient in the event of a major accident. A non-owned policy can give you additional liability coverage.
• You rent cars often: If you frequently rent vehicles, purchasing a non-owned auto insurance policy may be more cost-effective than buying liability coverage from the rental company each time. It can also provide peace of mind and protect you from paying high costs in the event of an accident.
• You drive a company car: If your company provides you with a car for work purposes, you are likely covered under their auto policy for business-related tasks. However, if you use the company car for personal activities, such as running personal errands or commuting, you may need a non-owned insurance policy to cover any damage that occurs during personal use.
• You need to file an SR-22 or FR-44 form: Some states may require these forms to reinstate your driver's license after a serious conviction, such as a DUI. Non-owned auto insurance can help you meet these requirements and prove that you have the minimum amount of insurance coverage mandated by your state.

In summary, non-owned auto insurance is suitable for individuals who don't own a vehicle but regularly drive borrowed, rented, or company-owned cars. It provides liability coverage for bodily injury and property damage in the event of an accident, giving you peace of mind and protecting you from high costs. However, it is important to assess your specific situation and driving habits to determine if this type of insurance is the best option for you.

When you shouldn't get non-owned auto insurance

Non-owner car insurance is a liability policy for people who don't own a car but need car insurance. This type of insurance is useful for those who frequently rent or borrow cars and want liability insurance to cover their assets in case they are sued over a car accident. It is also useful for those who need to prove coverage or maintain continuous coverage.

However, there are some scenarios in which a non-owner insurance policy is not the best option:

• You typically borrow a car from someone in your household: If the vehicle you drive belongs to someone you live with, you should be listed as a covered driver on their car insurance policy and may not need non-owner insurance. This is because, depending on where you live and which company insures the vehicle, coverage might be denied if every driving-age member of the household isn't listed on the policy.
• You regularly borrow the same car from someone you don't live with: Car insurance companies require customers to include anyone who regularly drives their vehicle on their policy, regardless of whether they live together. For example, if you frequently borrow your neighbour's car, you are likely already covered under their policy.
• You drive rarely or not at all: If you rarely or never get behind the wheel, non-owner car insurance is likely not worth the expense. In these cases, it may be cheaper to simply buy insurance at the rental counter or rely on the car owner's insurance policy in the rare event of an accident.

What non-owned auto insurance covers

Non-owned auto insurance is a liability policy for people who don't own a car but need car insurance. This could include someone who frequently rents or borrows cars, or someone who needs to prove they have insurance, such as by filing an SR-22 or FR-44 form. Non-owned auto insurance is also a crucial form of protection for businesses that rent or borrow vehicles.

Non-owned auto insurance covers:

• Bodily injury liability: This covers the cost of treating another person's injuries if you or your employee causes an accident. It also covers legal expenses if your business is sued. Some policies provide compensation for lost work time and a death benefit to cover funeral costs.
• Property damage liability: This covers the cost of repairing or replacing another person's vehicle and other property, as well as any legal and settlement expenses resulting from a lawsuit.
• Uninsured/underinsured motorist protection: This pays for your injuries after an accident caused by a driver without any or enough liability insurance.
• Medical payments or personal injury protection: This covers your injuries after an accident, regardless of who is at fault.

Non-owned auto insurance does not cover:

• Damage to the vehicle you are driving.
• Your own injuries in an accident.
• Other drivers, unless specifically included in the policy.
• Business driving, as it is generally intended for personal use.
• Personal belongings.

Frequently asked questions