Non-Owner Insurance: When To Get It

Non-owner car insurance is a type of insurance for people who don't own a car but still drive occasionally, using rental cars, car-sharing services, or borrowed vehicles. It's also a good option for those who need to file an SR-22 or FR-44 with their state. Non-owner insurance provides liability insurance to cover other people's expenses in the event of an accident caused by the policyholder. It typically costs between $200 and $500 per year, though prices vary depending on location, driving record, and other risk factors.

You're seeking to get your license reinstated after a serious infraction

If you're seeking to get your license reinstated after a serious driving infraction, such as a DUI or other serious traffic offense, non-owner car insurance can be a good option. Here's why:

After a serious driving infraction, state laws typically require you to file an SR-22 or FR-44 form to prove that you have car insurance and meet the minimum insurance requirements for reinstating your license. If you don't own a car, purchasing a non-owner insurance policy is an affordable way to meet these state requirements. Non-owner car insurance is generally cheaper than traditional car insurance, costing between $200 and $500 per year.

When you're ready to purchase a non-owner insurance policy, you'll need to compare quotes from different companies. Contact at least three insurance providers to get quotes and find the best rate. You'll also need to provide basic information, such as your name, date of birth, phone number, address, occupation, and details about your previous insurance coverage. Remember that most insurers do not offer online quotes for non-owner insurance, so you'll likely need to call them directly.

It's important to note that non-owner insurance has its limitations. It won't cover your own injuries or damage to the vehicle you're driving. Additionally, if you live with someone who owns a car, most companies will not allow you to purchase a non-owner policy. In that case, you should be added to the car owner's insurance policy.

You frequently rent cars

If you frequently rent cars, non-owner car insurance can be a good option to consider. This type of insurance provides liability coverage for those who don't own a car but still drive regularly. It can help protect you financially in case of an accident, and it may be more cost-effective than purchasing liability coverage from the rental car company each time.

Non-owner car insurance is typically secondary coverage, which means it kicks in after the primary coverage on the rental car pays out. For example, if you get into an accident with $40,000 in property damages while driving a rental car with $25,000 in property damage liability, the rental company's insurance would pay out $25,000, and your non-owner policy would cover the remaining $15,000.

This type of insurance can also help you meet state minimum insurance requirements and provide proof of insurance coverage if needed. It's important to note that non-owner car insurance doesn't cover damage to the rental car itself or your own injuries if you're at fault for the accident.

When considering non-owner car insurance, it's essential to compare quotes from multiple companies, as rates can vary significantly. Additionally, keep in mind that this type of insurance may not be necessary if you already have adequate coverage through a credit card or other existing policies.

You frequently use car-sharing services

If you frequently use car-sharing services, non-owner car insurance could be a good option for you. This type of insurance is designed for people who don't own a car but regularly borrow or rent cars. It provides liability insurance, which covers other people's expenses if you are responsible for an accident. This type of insurance can also include personal injury protection, MedPay, and uninsured/underinsured motorist coverage, depending on the requirements of your state.

Several companies offer non-owner car insurance, including Nationwide, Geico, AAA, USAA, and Travelers. The cost of this insurance varies between providers, with Geico offering it for around $421 per year, AAA for around $309 per year, and Nationwide for around $674 per year. USAA and Travelers do not provide quotes online, so you will need to contact them directly to obtain a quote.

Non-owner car insurance is also a good option if you need to file an SR-22 or FR-44 form with your state, even if you don't own a car. This insurance can help you maintain continuous coverage, preventing future premium increases. It is also useful if you want to reinstate your license after a suspension or revocation.

You are borrowing a car from a friend or family member

If you're borrowing a car from a friend or family member, you may want to consider non-owner car insurance. This is especially true if you don't own a car but borrow one frequently.

When you drive someone else's car, any expenses from an accident will generally be covered under the owner's insurance policy. However, the car owner is choosing the level of coverage, not you. And if there are problems with claims, you're not the insurance company's customer. Under your own policy, you can be certain you have adequate liability coverage.

Non-owner car insurance will pay for injuries and property damage to the other party from an accident you've caused. It doesn't cover damage to the car you've borrowed or injuries suffered by you or your passengers.

Non-owner car insurance costs between $200 and $500 per year.

You're temporarily between cars

If you're temporarily between cars, a non-owner insurance policy is a good idea. This is an inexpensive way to maintain continuous coverage and long-term customer status. It will also provide you with coverage when you're test-driving vehicles. When you do buy a car, you'll need to inform your insurer immediately and switch to an owner's policy.

Non-owner car insurance is a good option if you don't own a vehicle but regularly borrow or rent other people's cars. It's also useful if you need to file an SR-22 or FR-44 form with your state.

Non-owner car insurance typically costs between $200 and $500 per year, but this may vary depending on your driving history, location, coverage limits, and other factors.

Frequently asked questions