Tyron Jones
Personal Finance Expert
Updated: 02/2022
Tyron Jones is a finance expert who has operated within the auto insurance business for more than 10 years. He has written many other finance related articles for a number of prominent publications.
If you’re a licensed driver but don’t currently own a car then you may be in need of non-owner car insurance. Specifically, this type of insurance is useful if you’re someone who is borrowing or renting a vehicle. And the good news is that it’s more affordable than the average liability coverage. Let’s take a moment to discuss non-owner’s car insurance and why you need it.
What is It?
If you’re driving a vehicle that you don’t own non-owner insurance offers liability coverage for property damage and bodily injury. This means that if you’re involved in an accident and are found to be at-fault the policy will protect you against legal action. This type of policy may cover the cost of the other driver’s medical bills, rental cars, and uninsured motorists.
However, it’s important to keep in mind that there are no specific vehicles assigned to this policy. So, it won’t cover comprehensive or collision. Ultimately, this means that the car you’re driving or any injuries that you sustain won’t be covered.
How It Works
Non-owner car insurance only covers one person at a time. This means that it won’t cover both you and another family member. It’s also worth noting that this type of policy doesn’t have a deductible so it will kick in automatically without your having to pay anything. The reason for this is because non-owner car insurance is considered to be a type of secondary coverage. It helps in cases when the vehicle owner’s insurance won’t cover all of the damages.
For instance, imagine that you get into an accident while driving your friend’s vehicle and he or she has a $10,000 limit for property damage. If you were found at-fault for causes $15,000 in damage, then you would need to pay the additional $5,000. Your non-owners policy would cover this amount. You’ll only pay the entire $15,000 if your policy is greater than your friend’s.
Why You Need It
While non-owners car insurance can be beneficial, you’re not actually required to have it. In fact, not everyone will truly benefit from it. However, there are certain instances in which you should consider it to be a necessity.
Do you rent cars often? If so, then a non-owner policy would definitely cost less than purchasing rental insurance each time you rent a vehicle. In most cases, rental car insurance costs an average of $20 per day, so these costs can add up over time. Just make sure that you speak with your insurer to verify that the policy will cover the rental car. Also, make sure that any damages to the rental car will be covered by your credit card. If your card doesn’t cover the damage then it may be best to purchase a waiver that releases you from collision-damage liability.
Have you recently sold your car? Or maybe you’re going on a business trip and won’t be able to drive it for a long period of time. If so, you may experience a lapse in your car insurance. This often results in the insurance provider raising your rates. They may consider you to be high risk so you won’t be able to qualify for the best rates–even if you didn’t drive during your lapse. Rather than allow your insurance to lapse, why not remain covered with non-owners insurance.
Do you make it a habit of borrowing other people’s cars? If so, non-owners car insurance will ensure that you have access to a certain amount of coverage each time you drive their cars. This way, you won’t have to worry about whether or not the other person’s policy will cover you and how much you’ll be liable for. However, keep in mind that if this is a car that you borrow often, you may need to be added to their policy so that you can get primary coverage. If you fail to do this, your insurer may refuse to cover any of the damages.
SR-22 Insurance
In certain instances, if you’ve been cited for a dangerous traffic violation or have received a DUI, the only way to get your license reinstated is to get SR-22 or FR-44 insurance. And if you want to maintain your license, non owner sr22 insurance may require you to maintain a higher limit coverage for two to five years.
Only your insurance provider can file the SR-22. However, if you don’t own a vehicle, you can purchase a non-owners policy and the policy provider can file the SR-22 for you. Not only can this help you to get your license reinstated, but it can also ensure that your premiums aren’t so high. Just remember that there are very few companies who will be willing to sponsor your FR-44 or SR-22.
How Much Does It Cost?
It can be difficult to research and compare the cost of non-owner insurance policies–especially as they compare to the more traditional policies. In fact, it requires a significant amount of calling from one provider to the next to get specific details. However, research indicates that non-owners insurance policies are typically 5 to 15 percent less than standard policies. Ultimately, the cost of insurance depends on several different variables. The factors that matter most are your location, how frequently you drive, your driving history, and coverage limits.
Luckily, just as is the case with traditional insurance, you can always find ways to lower your costs. Simply call the insurer that you want to get a quote from and give them your name, address, phone number, license number, and your method of payment. Unfortunately, you won’t be able to find this information online as most require you to call in order to get information about non-owners car insurance.
All of the information that you give will play a huge role in your quote. There are some companies that may not even provide non-owner insurance in your state. So it’s best to get as many quotes as possible and find out which companies offers special deals and discounts.
Signs You May Not Need the Policy
At this point, you may be wondering if non-owners car insurance is right for you. Well, there are a few telltale signs. For example, if you own a vehicle, then you may not need this type of policy. In this instance, your liability coverage will be able to cover you any time you rent or borrow a vehicle. However, there are exceptions. You may need some additional protection. So it’s best to check with your provider to find out all of the details of your policy.
If you rarely borrow vehicles then you may not need a non-owners insurance policy. You’re not required to have this type of insurance when you borrow a car. And that’s because in most cases the car owner’s insurance will act as primary coverage and take care of all of the damages that are associated with the accident.
The biggest benefit of having this type of insurance when borrowing a car is that it will help to keep your friend’s insurance rates down if you’re found to be at fault. Also, it ensures that you get all of the liability because in some cases, your friend’s insurance provider may not cover any damages if they weren’t the person who was actually driving the car. Before getting behind the wheel of anyone’s vehicle you should always check and make sure that you will be covered. You should also have an idea of how much you will be covered for.
Another indication that you may not need this type of insurance is if you drive a company car. If the car that you’re driving is owned by the company that you work for then you’ll be covered by their insurance. As long as you’re using it for business purposes then you won’t be liable for any of the damages. However, if you’re using it regularly and for personal reasons then there are exceptions to this particular rule. You can be held liable in this case. So how you use the company car will make a big difference in your decision.
You may not need this type of insurance if you use a car-sharing service. There are several different types of car-sharing services and each has its own risks and rewards. Some include the minimum amount of coverage required by the state. Some allow you to upgrade the type of coverage you have for a small fee. In fact, if you charge the car on a credit card, the company may provide you with more coverage. The key to ensuring that you don’t need non-owners car insurance in this instance is to read the fine print. And keep in mind that a lot of car-sharing companies state that their policies are subject to change.
The Takeaway
Most people understand the importance of having car insurance. Not only does it protect them from liability, but it also covers their most important and immediate expenses. And most importantly, it legally required of every vehicle owner However, very few people take the time to think about how insurance affects those who don’t own a vehicle. Some people have a driver’s license but rarely drive their own car. Perhaps they rent, borrow, or even take public transportation.
In these instances, it’s very important that you have the proper coverage as there’s always a chance that an accident could happen while you’re in someone else’s vehicle. Non-owners car insurance will ensure that if you’re at fault you can’t be sued and that you have enough to cover the damages. The most convenient thing about this policy is that it can act as secondary coverage. Instead of having to pay for all expenses, your insurance policy will kick in after the insurance on the car that you’re driving has paid the initial amount.
This isn’t to say that this type of insurance is for everyone. If you own your own vehicle or rarely ever rent a car then you may not need it. Ultimately, non-owners car insurance may not be a requirement but it definitely saves you money and offers an added sense of protection that can come in handy in the long run.
FAQ
General Non-Owner Car Insurance Questions
This section will help you understand the basics of non-owner car insurance.
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What is non owner car insurance?
Non-owner car insurance is a type of insurance available to people that will be driving a car that they do not own.
How to get non owner car insurance?
You can get non-owner car insurance by contacting an auto insurance company. Most companies will offer non-owner insurance to qualified drivers.
What does non owners car insurance cover?
There are different kinds of non-owner policies. All of them cover the state minimum liability limits at the very least. Some policies can even have comprehensive coverage.
How does non owner car insurance work?
Non-owner car insurance works like any other car insurance. You tell the insurance company about yourself and what car you’ll be driving, and they provide you a price and an insurance policy to protect you.
Who offers non owners auto insurance?
There are several options for non-owners insurance. Geico, State Farm, Nationwide, and The General offer it in all 50 states.
Who needs non owner’s car insurance?
You should get non-owners insurance if you regularly rent or borrow cars, use a car-sharing service, or if you’re required to do so by a court decision. If you think you will have your own car soon you might benefit from paying for car insurance per mile instead of the normal policy type depending on how much you drive of course.
What the purpose of non-owner’s car insurance?
Non-owners insurance provides protection from liability and damages in the event you’re responsible for a car accident while driving a car you don’t own.
What do I need for non-owner’s car insurance?
You’ll need your basic information like name, social security number, driver’s license number, address, and phone, as well as information about the car you’ll be driving.
How to apply for non-owner car insurance?
You can apply for non-owner car insurance online or by calling a local insurance agent for a company that offers non-owner car insurance.
How to buy a temporary non owner car insurance?
Companies that offer non-owner car insurance will have flexible plans that can cover you from a day up to six months.
How to get a non-owner car insurance quote?
Contacting a local insurance company online or by phone is the best way to get a quote for non-owners’ insurance. In the meantime if you do get a car we can help you find affordable full coverage insurance quotes too.
How long does name non owner car insurance last?
That depends on how long you need it. Non owners’ policies are flexible, so you can get one for as long or as little as you need.
Where to buy non owner car insurance for one month?
Nationwide, State Farm, The General, and Geico all offer temporary non-owners car insurance in al 50 states. Related: Is there a grace period for car insurance renewal?
How do I get non owner car insurance quote online?
Many companies don’t give non-owners insurance quotes online. You may have to call to get your quote. When you go shopping for car insurance be sure to talk to multiple companies to get the best rate. Its a little more work but it pays off.
Who provides non owner rental car insurance?
The rental car agency and/or your credit card company are the two most common insurers for non-owner rental car coverage.
Who has the best non owner car insurance?
That depends on what you’re looking for. Nationwide, The General, Geico, and Stat Farm offer non-owner car insurance in every state. You should contact them to get quotes.
How to get cheap business auto insurance nonowner?
One of the best ways to lower your insurance cost is to bundle or as its also called, getting a multi policy discount. Contact your current insurance provider to see if you can add a non-owner business auto insurance policy to your plan.
How to apply for non-car owner insurance?
The best way to apply for non-owner’s car insurance is to contact an agent of a company that offers it. State Farm, Nationwide, Geico, and The General are popular choices.
Non-Owner Car Insurance Pricing
We’ll answer the most common questions people have about non-owner car insurance prices in this section.
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How much is non owner car insurance?
Non-owner car insurance is generally cheaper than standard car insurance. The average cost is about $474 per year.
How much should non owner’s car insurance cost?
The average cost of non-owner car insurance is about $474 per year, so anything lower than that is a good deal.
What auto insurance is cheapest for non-owner?
Geico, State Farm, Nationwide, and the General all of good deals on non-owner car insurance and sell it in all 50 states. Try to get a policy that costs less than $474 per year. Its always a good idea to get multiple insurance quotes from all these companies to see who offers the cheapest rates.
How much is non-owner auto insurance when the person has a DUI?
There’s no way to accurately know how much your car insurance will cost without taking other factors into account. However, with a DUI, you’ll probably be paying more than the average of $474.
How much does a non-owner sr-22 auto insurance policy cost?
Any SR-22 policy is going to cost more than average. Expect it to cost more than the $474 average for non-owner car insurance.
What is the average cost for non-car owner insurance per month?
The average monthly cost of non-owner insurance is about $39.50.
How much is non owner car insurance cost for a 21 year old female?
There’s no way to tell how much insurance will cost for a specific person without checking with insurance companies. There are too many variables for an accurate guess. The average cost of non-owner car insurance is about $474 per year. Related: Why is my auto insurance so high?
How much is nonowner car insurance usually?
Usually, non-owner car insurance costs about $39.50 per month. If you have noticed a car insurance increase then it may be a good time to shop around for better rates.
How much generally is a non-car owner liability car insurance?
Non-owner liability car insurance averages about $474 per year for most people. Compare liability insurance auto options by entering your zip code.
How much is non-owner car insurance for teens?
Teens will pay much more for non-owner car insurance unless they are being added to their parent’s insurance. Expect to pay at least $800 per year.
How much is non owner car insurance for rental cars?
The rate for non-owner insurance for rental cars changes based on the car and the state you’re driving in. The average cost is about $474 per year.
Non-Owner Car Insurance and Different States
This section covers non-owner car insurance in specific states.
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What states require non owner car insurance?
How much is non owner car insurance in Massachusetts?
The average cost of non-owner car insurance in Massachusetts is about $500 per year. Learn more about how to lower your car insurance.
How to get non owners car insurance TX?
The best way to get non-owners’ insurance in TX is to contact Nationwide, State Farm, Geico, or The General.
Who provides non owner car insurance California?
Nationwide, State Farm, The General, and Geico all offer non-owner insurance in all 50 states.
Who does non owner car insurance in Nevada?
You can be sure that The General, State Farm, Geico, and Nationwide offer non-owner car insurance in Nevada.
How much is non owner’s car insurance in MI?
Car insurance costs in MI are a bit below the national average. Non-owner insurance will run about $440 per year.
Who sells non-owner auto insurance in Charlotte, NC?
Geico, Nationwide, The General, and State Farm all offer non-owner insurance in Charlotte, NC.
Who does non owner car insurance in Nevada with a physical office?
Geico, Nationwide, and State Farm all have physical branches in Nevada, and all offer non-owner car insurance.
How old do you have to be to have non owner car insurance in Ohio?
You need to be at least 16 to have non-owner car insurance in the state of Ohio.
Non-Owner Car Insurance and Specific Companies
We’ll answer your questions about non-owner car insurance and specific companies in this section.
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Where can I get non owner car insurance?
You can get non-owner insurance from most insurance companies, but Geico, State Farm, The General, and Nationwide offer it in all 50 states.
How much is Progressive auto insurance for non-owner?
The price of a non-owner policy for a specific person depends a lot on many factors, like your driving record, type of car you’ll driver, credit score, and more. On average non-owner’s insurance costs about $474 per year. If your record isn’t good then you’ll need to shop around for car insurance for bad driver record until you find the lowest rates.
How to buy non owner car insurance from USAA?
The best way to buy non-owners’ insurance from USAA is to go to their website or contact a local agent to see if they offer non-owners insurance in your area.
What companies offer non-owner car insurance?
Nationwide, Geico, State Farm, The General, USAA, Farmers, and Travelers all offer non-owner insurance. Ask them if they have any car insurance 0 down promotions.
How to get non owner car insurance from AAA?
The best way to get non-owners’ insurance from AAA is to call them. They don’t offer these policies for sale online. You’ll want to compare auto insurance rates by zip code before committing to one company.
How much is USAA non owners auto insurance?
There’s no way to know how much a non-owners policy will cost without more information. Your local USAA agent can give you an exact price.
Other Non-Owner Car Insurance Questions
This section covers questions that don’t fit into our other categories. Check here if you can’t find your question elsewhere.
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How to cancel non owner’s car insurance?
You can cancel your non-owner’s car insurance by going to your online account or by calling the number on the back of your insurance card.
Which is cheaper non owner or non-drivable car insurance?
The exact price for non-owner and non-drivable car insurance depends on many factors. You’ll have to contact an agent to get quotes.
How do you get non owner car insurance with sr-22?
You’ll need SR-22 non-owner insurance. This is offered by lots of companies. The General is a popular option here.
How does non owner car insurance cover the rental car?
Non-owner car insurance covers rental cars just like regular insurance. You can see all of the details and fine print for a specific policy when you sign up for one.
How to cancel auto insurance and get non owners auto insurance?
Depending on your situation and state this may be tough. You should contact your current insurance agent to see what they can do to you.
Is there a way to have a non-owner insurance when you own a car?
You can have non-owner insurance when you own a car, but the non-owner insurance won’t cover you while driving a car you own.
