Alyssa Lane
State Farm auto insurance provides coverage for drivers who frequently drive a car they don't own, such as a rental car or a borrowed car. This is known as non-owner car insurance and offers liability protection, covering damage to another driver's vehicle or their injuries during an accident. It is secondary coverage, meaning it bridges the gap between the primary car insurance and any damages that exceed the liability limits. This type of insurance is typically cheaper than full coverage and is ideal for those who don't own a vehicle but drive occasionally. However, it's important to note that non-owner car insurance only covers the policyholder and doesn't include other drivers who may operate the vehicle.
| Characteristics | Values |
|---|---|
| State Farm auto insurance cover for licensed unauthorized drivers | State Farm auto insurance covers bodily injury liability and property damage liability after an accident when the covered driver is at fault |
| What is covered | Damage to another driver's vehicle or their injuries during an accident |
| When is it covered | When the covered driver is at fault |
| Who is covered | The policy follows the driver rather than the car; anyone else who drives the vehicle would need to be on a separate non-owner policy to have the same type of coverage |
| When to get non-owner car insurance | If you plan to borrow a car from a family member or friend and you can't be on their auto policy; if you're providing care for a friend or family member and use their car; if you're driving a company vehicle for personal use; if you rent cars often; if you're using a car-sharing service |
| Benefits of non-owner car insurance | More financial protection; continuous coverage; typically pay less for non-owner car insurance than a liability policy |
| Drawbacks of non-owner car insurance | Doesn't pay to repair the car you're borrowing; doesn't cover your injuries; has limited coverage |
What You'll Learn
State Farm's non-owner car insurance
Personal mobility coverage provides benefits such as:
- Protection as a pedestrian, passenger, or driver of a vehicle you don't own.
- Potentially lower costs compared to purchasing coverage through a rental company.
- Proof of insurance.
- Multiplied savings when bundled with a State Farm Homeowners or Renters policy.
When renting a car, State Farm's non-owner insurance can cover damage to the rental, minus a deductible, up to the limit required by state law. It can also cover loss of use and other administrative charges assessed under the rental contract terms. Available coverage options include bodily injury, property damage liability, uninsured motor vehicle property damage coverage, comprehensive, collision, and emergency road service.
Non-owner car insurance from State Farm provides liability protection, covering damage to another driver's vehicle or their injuries during an accident. It serves as secondary coverage, bridging the gap between the primary car insurance and any damages that exceed the liability limits. This insurance is particularly useful if you borrow a car from a family member or friend and cannot be added to their auto policy, providing financial protection for vehicle damage and injuries to others during an accident.
However, it's important to note that non-owner car insurance doesn't cover repairs or replacement for the vehicle you're driving and doesn't compensate you or your passengers for injuries. It also has limited coverage, applying only to the policyholder and not to others driving the vehicle.
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Driving without insurance
Fines
If you are caught driving without insurance in California, you could be fined up to $500, depending on whether it is your first or subsequent offence. For a first-time offender, the fine is between $100 and $200, plus penalty assessment fees, which can bring the total to around $400. For a second offence, the fines increase to between $200 and $500, with penalty assessments of $520 to $1,300, bringing the total to $1,020 to $1,800.
License Suspension
If you are caught driving without insurance and are involved in a collision, your license can be suspended for up to four years. After one year, you can apply to have your driving privileges reinstated if you provide an SR-22 and maintain proof of financial responsibility for three years.
Vehicle Impoundment
The court may also decide to impound your vehicle, even if it is your first offence.
Increased Insurance Costs
Once you have received a ticket for driving without insurance, you will be considered a high-risk driver, and your insurance costs will increase.
Restricted License
If your license has been suspended and you need to drive to work or school, you may be able to apply for a restricted license to allow you to continue driving in necessary circumstances.
No Compensation for Non-Economic Damages
California is a "no pay, no play" state, which means that an uninsured, not-at-fault driver cannot sue an insured at-fault driver for non-economic damages, such as pain and suffering or inconvenience.
Other Consequences
If you cause an accident while driving without insurance, you will be responsible for paying for the damages, including repairs to the other person's vehicle and their medical expenses, which can be extremely costly. If you are unable to pay, the other driver could sue you, and your wages could be garnished.
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Liability coverage
State Farm's liability coverage includes two types: Bodily Injury Liability Coverage (BI coverage) and Property Damage Liability Coverage (PD coverage). BI coverage helps pay for bodily injuries that you are legally liable for, meaning your actions caused injury to another person and you are held responsible. It also covers defence and court costs if you are sued. On the other hand, PD coverage assists in paying for damage caused to another person's or company's property, as well as the loss of use of that property. For example, if you crash into a building, PD coverage will help pay for the repairs to the building wall. Similar to BI coverage, PD coverage also includes defence and court costs if a lawsuit arises.
It is important to note that liability coverage does not cover repairs to your own vehicle or injuries you sustain in an accident. To ensure coverage for your own vehicle, you will need separate insurance, such as collision coverage or comprehensive coverage. Additionally, liability coverage has minimum coverage limits set by each state, and it is recommended to consider purchasing higher coverage limits for added protection.
State Farm also offers additional liability protection options, such as the Personal Liability Umbrella policy, which provides extra coverage beyond your primary auto insurance policy. This can be beneficial in cases where injuries and property losses from accidents are significant, resulting in high judgments.
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Insurance for foreign drivers
If you're a foreign driver in the US, you'll need a valid driver's license and auto insurance to drive, in most states. The rules vary depending on the state that you're in and how long you're staying.
Driver's Licenses
In most states, you'll need a driver's license and vehicle insurance to drive in the US. Typically, the DMV (Department of Motor Vehicles) requires that you have a social security number to get a license. However, some states are now able to help people obtain a driver's license without a social security number.
If you're visiting the US for a short time, you may be able to drive using your home country's driver's license. This depends on the country you're from and the state you're driving in. Alternatively, you can obtain an international driving permit (IDP) which will allow you to drive in the US and many other countries. An IDP is not a valid driver's license but serves as a translation for your foreign license. It should always accompany your foreign license.
If you're in the US for more than a year, you may need to obtain a US driver's license.
Car Insurance
Most insurance companies offer car insurance for tourists, visitors, and short-term students in the US, but you'll need a valid driver's license. If you're renting a car, you may get insurance through the rental company. This is the easiest option for tourists.
If you're in the US for several months and will be driving a vehicle that isn't a rental, you'll need an auto insurance policy. Standard insurance policies last six months or a year, but some insurers offer temporary policies for shorter periods.
If you're moving to the US, you can purchase an insurance policy to match the length of time you're driving with a foreign license or an IDP. After this, you'll need to obtain a US driver's license and insurance.
Some insurance companies only work with US drivers. However, major companies like Progressive and State Farm do insure foreign drivers who meet state requirements. As a foreign driver, you may be charged higher rates.
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Insurance for unauthorised drivers
State Farm offers non-owner car insurance, which covers you when you drive a car you don't own, such as a rental car or a borrowed vehicle. This type of insurance provides liability protection, covering damage to another driver's vehicle and their injuries during an accident. It is secondary coverage, which means it bridges the gap between the primary car insurance and any damages that exceed the liability limits. For example, if you borrow a friend's car and cause an accident, and your friend's insurance policy has lower property damage liability coverage than the cost of the damages, State Farm's non-owner car insurance can cover the remaining balance.
State Farm also provides auto insurance for foreign drivers. Depending on the state, you may be able to drive in the US with a driver's license from your home country or an international driver's license. State Farm insures foreign drivers who meet state requirements.
In general, State Farm will cover a driver who is not on the policyholder's insurance if they have the owner's consent. However, this may vary depending on the insurer and the specific policy. If the driver lives in the same household as the policyholder, they may need to be added to the policy.
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Frequently asked questions
Yes, State Farm offers non-owner car insurance, which covers damage and medical expenses for the other party if the driver is at fault for an accident.
State Farm does not explicitly mention unlicensed drivers. However, they do provide insurance for foreign drivers, depending on the state requirements.
If the driver lives in the same household, they should be added to the policy.
