WHAT IT MEANS
Non-owner car insurance provides financial protection when you drive someone else’s vehicle. It does not provide comprehensive coverage, such as a full-coverage policy, but it can assist in covering accident-related expenses.
Non-Owner Car Insurance: What Is It?
The standard auto insurance policy covers a specific vehicle. When you purchase a new car, you’ll need a policy that covers you when you drive or if a member of your family drives. If, for example, you are driving your automobile and cause an accident, the property liability coverage on your car policy would help pay for the repair of the other driver’s vehicle if you cause the accident.
Keep in mind
Non-owner auto insurance is usually very affordable, but not all insurance companies offer it as a policy option. People who don’t own a car but frequently borrow one from a family member or friend may want to consider purchasing this type of coverage.
As a matter of fact, a non-owner auto insurance policy does not cover any specific automobile, but rather a specific individual. For instance, suppose you have a non-owner car insurance policy because you often borrow your friend’s car. In the event that you are responsible for an accident involving the vehicle you drive, your policy may be able to cover the costs of repairing the other driver’s car.
It is important to know that non-owner car insurance policies are tied directly to the policyholder, so if you borrow cars from multiple people, you are still covered, regardless of which vehicle you drive.
Non-Owner Car Insurance: How Does It Work?
Insurance for non-owners generally provides liability coverages with no deductibles. In addition to providing secondary coverage, non-owner policies will also pay if you are involved in a crash. In the event of a crash, the owner of the car must pay the first, and if that insurance policy does not cover the entire cost, your non-owner policy will kick in.
A non-owner auto policy covers only liability. If you total someone’s vehicle and they don’t have collision insurance, you may have to replace it. Non-owner policies do not offer optional coverages such as rental reimbursement or towing because they cover a person, not an automobile.
For non-owners to be covered by insurance, certain minimum requirements must be met. As an example, Missouri automobile owners are required to carry a minimum of $25,000 in bodily injury liability insurance per person, $50,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability insurance per accident, as per Missouri law. Therefore, a Missouri non-owner policy must meet or exceed those minimum coverage levels in order to be valid.
Keep in mind
There are some non-owner car insurance policies that provide liability coverage when renting a car from a third party.
Non-Owner Car Insurance: What Does It Cover?
A non-owner car insurance policy covers only bodily injury liability and property damage liability. If you are at fault, your policy’s property damage liability would pay for the repair of the other driver’s car. In the same vein, if the other driver sustains an injury, your non-owner bodily injury liability policy could cover their medical expenses.
As part of the non-owner auto insurance package, some insurers also offer medical payments coverage and uninsured and underinsured motorist bodily injury coverage.
Non-Owner Car Insurance: What Isn't Covered?
There are no collision, comprehensive, or medical payments coverages included in non-owner auto insurance. As a result, it does not provide protection for the vehicle you borrow, you, or your passengers.
Keep in mind
The non-owner insurance policy would only pay for the repair of the other driver’s vehicle if you cause an accident that damages both the other driver’s vehicle and the car you borrowed. Additionally, your non-owner policy would not cover the medical bills incurred by you or one of your passengers in the event of an accident.
Moreover, the non-owner policy won’t cover the cost of replacing your car if it is stolen while it is in your possession.
Car insurance for non-owners: who needs it?
Non-owner auto insurance is not necessary for all drivers. Others who may need it include:
A person who frequently borrows a car, but does not own one of their own.
Renting a car frequently means that if the driver wants liability protection that exceeds the coverage offered by the rental company, then this is what they should get.
Those who frequently rent vehicles, but do not want to purchase the rental company’s liability coverage.
It may also be beneficial for business owners whose employees are using their own cars for work purposes to look for non-owner car insurance policies. Business owners should also make sure that their commercial auto insurance policy covers all employee-owned vehicles.
Non-Owner Car Insurance: Who Doesn't Need It?
There is no need for non-owner auto insurance for vehicle owners who carry all required insurance coverages on their vehicles and who rent or borrow their vehicles rarely.
Non-Owner Car Insurance: How To Get It
Non-owner policies are available from some auto insurance companies, but not all. Contact your agent to learn more.
A non-owner car insurance policy is similar to any other type of insurance you could obtain. You enroll with the insurance company either online or by telephone. Upon providing key information, a quote is provided to you. As soon as you agree to the terms of the policy, you can accept the insurance policy. You then start paying the regular premiums and start receiving the protection.
What is the cost of non-owner car insurance?
Usually, the cost of non-owner auto insurance is much less than the cost of liability coverage included in standard policies. Rates vary depending on a driver’s driving history, level of coverage, and location. However, as is the case with standard policies, high risk drivers typically pay a higher non-owner premium than lower-risk drivers, and non-owner policies usually do not have deductibles.
SR22 Insurance: What Is It?
An SR22, also known as a certificate of financial responsibility or FR44, is not a type of insurance. It is a form that declares that you are in compliance with a state’s minimum liability insurance requirements. Some courts require some drivers to submit an SR22 in certain situations. It is usually the case that the court will inform you that you need to attend a hearing in order to get the SR22 filed. At that point, a judge will order it to be filed.
A court may require you to file an SR22 for the following reasons:
Driving without adequate insurance coverage can have serious consequences
A DUI
There are an excessive number of accidents where the driver is at fault
Getting a lot of driving citations in a short period of time
Inability to pay child support in a timely manner
After your driver’s license has been revoked or suspended, you are required to obtain a hardship license in order to drive
A majority of the time, your insurance company will take care of filing SR22s on your behalf and adding endorsements to your policy on your behalf. However, if your insurance company does not provide SR22 endorsements, you will have to purchase one from another provider. The cost of filing an SR22 varies, but is usually around $25. A driver who is required to submit an SR22 must maintain coverage for a certain period of time in order to obtain a license.
The failure to submit an SR22 form can result in the suspension of a driver’s license as well as the registration of an automobile.
What you need to know
After the owner’s policy expires, the non-owner policy takes over.
An auto insurance policy for a non-owner is tied to a specific policyholder, not to a specific car.
The coverages provided by non-owner car insurance include bodily injury liability and property damage liability.