Auto insurance isn’t just for car owners but also for those driving cars that they don’t own. Some drivers don’t own a vehicle, such as taxi drivers. You could also be renting a car instead. But even those who don’t own a vehicle are obligated to get non-owner car insurance.
This type of insurance pays liability and property damage to the victims of the accident. It can also include uninsured or underinsured and rental car liability coverage. The downside to this insurance is that if you’re at fault, it won’t pay to cover your medical costs, and it won’t obscure the damages to the car you were driving.
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Who Should Get Non-Owner Car Insurance?
If you’ve doubts about getting non-owner car insurance, you should consider it if you’re under the following:
- If you’re using a car-sharing service like Getaround, Maven, or Zipcar, non-owner car insurance will give you more coverage. Some companies aren’t providing enough content for those who use their service.
- If you tend to rent cars often, non-owner car insurance will help protect your savings and other assets by providing the payment for damages and injuries.
- Are you a driver that needed to file an SR22 form? You need car insurance, especially if you have a DUI history, driving without insurance, or license suspension and revocations, and other serious traffic violations. If you need a fantastic read about the SR22 form, you can research and find out more about this form.
- Non-car owners who don’t want a coverage gap should’ve non-car owner insurance. If you don’t have car insurance, you’re considered high-risk. If you’re between vehicles, you’ll get a high premium from your insurance company once you decide to get insurance finally.
- You’re in the business of having multiple cars used by employees. If they drive their vehicles for work, the commercial policy also extends to your staff’s cars. But this only applies to employees who sometimes need to use a car for work purposes.
Requirements For Non-Owner Car Insurance
Car insurance is mandatory, and the requirements can vary per insurance provider. But the following are the requirements provided by the insurer:
- Non-ownership of the vehicle
- Valid driver’s license
- Proof that you or your household doesn’t own or doesn’t have an access to a vehicle.
This type of insurance only applies to you and not to anyone else even your spouse. It’s also important to note that the owner of the car must add you to the policy. Depending on the owner’s state and insurance provider, you may need to be added to the policy even if you don’t currently own a driver’s license. The insurance will also follow both the owner of the car and the driver. In the event of the accident, both the owner’s insurance and the driver’s insurance will be in effect.
What Isn’t Covered by The Non-Owner Insurance?
There are parts of the insurance policy that won’t cover the following optional coverages:
- Rental reimbursement
- Towing reimbursement
How Much Is The Non-Owner Insurance?
Non-Owner Car Insurance premiums vary per insurance provider. It’s an optional coverage different from traditional car insurance. To get more information about this type of insurance, you can contact various insurance companies to make comparisons and determine which is offering an affordable premium.
Typically, non-owner insurance can go up to 15% lower than a standard policy. The premium cost will vary depending on the limits of coverage, where you live, how often you drive, and your driving history. While there’s no universal amount, research shows that the national average is around USD$474 per year. States are paying for lower costs and others that are expensive. Currently, the top three states spending the most expensive premiums are:
- Rhode Island – USD$972/year
- Michigan – USD$1,073/year
- New Jersey – USD$1,090/year
If you’re wondering how you can save more on car insurance, you’ll need to adopt measures such as bundling, increasing deductibles, and getting rid of policies you don’t need. If you have a standard policy and a non-owner policy, talk to your insurance provider about options.
Car accidents can be devastating for both parties but even more to the victims. The non-owner policy is the answer for those who don’t own the vehicle they’re driving at the devastation event. They should apply for this type of insurance policy.
It’s crucial for car owners to always include drivers renting their cars to incorporate this policy. Drivers also need to ensure that they have this policy to avoid legal repercussions.