Non-owner car insurance is beneficial for individuals who drive vehicles that they don’t own. Whether you’re renting or borrowing a car, a non-owners insurance policy would pay for injuries and damage in the case of an accident. Simply put, this type of car insurance protects you when you’re driving a vehicle you do not own.
This can be because you drive a car for work, borrow a car regularly or are mandated by the courts to carry the extra coverage. Non owner car insurance supplements the car insurance that is already on the vehicle, providing extra coverage in case of a crash or other automotive accident.
The average cost of a non-owners policy is $474. This rate is much lower than that of a standard car insurance policy, which makes it a beneficial investment for those who need it. Plus, non-owners insurance will count as continuous coverage, so you won’t be penalized with a higher premium if you decide to get your own vehicle again.
Several companies offer non-owner car insurance policies nationwide, including Geico, State Farm, Nationwide and the General. Fortunately, this makes shopping around for the best price simple: You just need to call each provider to request a quote because non-owner car insurance quotes are not typically available online.
What does non-owner car insurance cover?
If you borrow someone’s car and are involved in an accident, the vehicle owner’s car insurance pays out first. If it’s not enough to cover damages, your non-owner policy will kick in as secondary coverage.
A non-owner car insurance policy usually only provides minimum coverage when you’re driving a vehicle that you don’t own. Typically, these policies include bodily injury (BI) and property damage (PD) liability coverage, neither of which include a deductible when you make a claim. BI coverage takes care of medical expenses and lost wages suffered by the victim of an accident for which you are at fault, while PD insurance helps you pay for damage to someone’s vehicle or property. Additionally, while optional coverages normally associated with car insurance, like collision, comprehensive, towing and rental reimbursement, are not available through non-owner policies, some insurers do offer uninsured/underinsured motorist bodily injury coverage.
To get the most out of your policy, check with your provider to see if you are eligible for liability coverage on rental vehicles. On the other hand, if you don’t rent cars often, it may be cheaper to use your complimentary credit card rental car insurance or purchase rental car insurance through the car-rental agency.
When do you need non-owner car insurance?
If you don’t own a vehicle, you’re typically not legally required to have a non-owner car insurance policy. There are, however, some situations when it’s a good idea to apply for coverage.
- You rent cars regularly If you rent cars frequently for travel or other reasons, a non-owner policy that offers liability coverage on rental vehicles can be a cost-effective option. That said, you might also want to purchase rental car insurance through your credit card or the car-rental company.
- You borrow cars regularly: If you’re a caregiver or work with someone whose vehicle you often use, having non-owner insurance to supplement their personal policy if you get in an accident. However, if you are borrowing a car from someone in your household, you should be listed on their policy –– not on a non-owner policy.
- You use a car-sharing service If you’re enrolled in a car-sharing service like Car2Go, Zipcar or Maven, you’ll typically get some liability and damage coverage as part of your membership. Check the fine print to find out how much protection you have. In some cases, it might be wise to get some additional coverage.
- You’re without a car temporarily If you’re selling your car but plan to buy a new one in the near future, it’s usually a good idea to get non-owners insurance to prevent a lapse in insurance coverage. Otherwise, you may end up paying a higher rate for regular insurance when you get a new car.
- You’re required by a court: If you’ve committed serious traffic violations, a court may require you to file a proof-of-insurance certificate to maintain your driver’s license, even if you don’t own a car. Specifically, this can happen if you’ve been convicted of a DUI, caused an accident as an uninsured driver or been ticketed for reckless driving. If this happens, you may need non-owner SR-22 insurance (or FR-22 insurance if you live in Florida or Virginia).
2019 Best non-owner car insurance companies
| Company | Phone number |
|---|---|
| Geico | (800) 207-7847 |
| StateFarm | (800) 782-8332 |
| Nationwide | (877) 669-6877 |
| TheGeneral | (844) 328-0306 |
Each of these companies offers non-owner car insurance plans in all 50 states, and Geico, State Farm and Nationwide are known for their quality customer service in some regions, according to J.D. Power.
Geico
If you’re hunting for great non owner car insurance, Geico is a great option. Like most non-owner insurance options, Geico’s only covers liability claims, such as bodily injuries or property damage to the victims of an accident in which you are at fault. This means that if you or any passengers with you are hurt in an accident, you’ll want to have additional insurance.
What’s great about Geico’s non-owner car insurance is that it’s a great option if you’re trying to keep your rates low while in-between cars or if you need proof of insurance for whatever reason. Another great aspect of Geico’s coverage is that if you already have another insurance policy through Geico, such as homeowners or renters insurance, you can qualify for a bundling discount on your non-owner auto insurance policy. No other provider offers this discount.
Also, when we called to ask for quotes, Geico had the easiest phone tree to navigate and had us speaking with a friendly, helpful person the fastest.
State Farm
State Farm’s non-owner car insurance is similar to Geico’s in that it is liability-focused. State Farm’s Bodily Injury pays for bills such as medical expenses, pain and suffering and lost wages, while the property damage liability coverage pays for bills associated with vehicle repair or property damage in accidents for which you are at fault.
Rideshare insurance is also a feature offered by State Farm, but this coverage is an add-on for existing policyholders and is thus not considered non-driver insurance.
Nationwide
Nationwide also offers customers liability insurance like State Farm and Geico. Additionally, Nationwide encourages businesses to protect themselves with non-owned automobile insurance, which covers them when their employees get in accidents involving company vehicles used for business purposes. Along with standard liability insurance, the business auto insurance includes uninsured and underinsured motorist coverage, medical payments coverage and Personal Injury Protection (PIP).
The General
No one’s perfect. We all slip up now and then and get the occasional mark on our driver’s record. When you have your license suspended or lose it altogether, it’s nice to have a provider in your corner that will continue to have your back.
The General is that provider. It offers liability coverage for bodily injury and property damage like Nationwide, State Farm and Geico, but The General agents are specialists in covering drivers in need of proof of insurance. If you often drive someone else’s car—or need coverage to make sure that your rates don’t go up while in between car ownership—and have considered getting non-owner car insurance, The General may be among your best options.
How to buy non-owner car insurance
Not all companies offer non-owner car insurance, so look at the table below to find providers that provide these policies. Typically, non-owner insurance quotes aren’t available online, so you’ll need to call the companies directly to get an estimate.
Before you call, you’ll need to have your vehicle and personal information in order, including your driver’s license number and state of issue and driving history (prior tickets, accident history and license suspension information). Have a credit or debit card ready too.
When is non-owner car insurance unnecessary?
If you’re still not sure if your situation merits non-owners insurance, here are some situations where it’s clear that you don’t need it.
- The car you drive has sufficient insurance: Whether you use a family member’s or friend’s car or a car-sharing service, a non-owners insurance policy provides secondary coverage. This means that you typically don’t need it if the coverage on the car you’re driving is robust. Check with the car’s owner or the contract on your car-sharing service to find out how much coverage it has and determine whether it needs more when you’re behind the wheel.
- You don’t rent cars often: If you rent cars irregularly, the coverage offered through your credit card or the car rental company may be cheaper than having a policy with a monthly premium.
- You own a car If you own your car, it goes without saying that non-owners insurance isn’t the right coverage for your needs. Instead, you’ll want to get a standard car insurance policy, which provides more comprehensive protection.
Non-owner car insurance rates
Non-owner car insurance premiums are significantly lower than those for regular car insurance. A non-owner car insurance policy will cost you roughly $474 a year on average.
With a traditional car insurance policy, a primary factor that determines how much you pay in premiums is the value of the car being insured. For example, a $200,000 sports car costs a lot more to insure than an $18,000 minivan.
With non-owner car insurance, however, there’s no car to insure, so you are the main factor that determines the rate. Specifically, insurance companies will look at how likely it is that you’ll cause an accident. They do this by checking your driving record and your credit-based insurance score. Other factors are also assessed, such as your age, marital status and where you live.
With an average non-owner insurance policy costing $1,090 annually, New Jersey is the most expensive state to take out one of these policies. On the other hand, Wisconsin has the cheapest rates, at an average of $171.
Someone who has a clean driving record and excellent credit is going to get a lower rate than someone with a lot of citations, accidents and less-than-perfect credit. Don’t take this personally – just clean up your credit and keep a clean driving record, and you’ll be able to get a lower rate over time. Where you live also determines how much your non-owner car insurance will cost.
Frequently asked questions about non-owner car insurance
Can I rent a car with non-owners insurance?
Yes, non-owners insurance provides coverage if you rent a car and is a good idea if you regularly rent vehicles. Many credit cards also include coverage if you use them to book your rental car.
Should I get non-owner car insurance if I’m borrowing a car long term?
If you’re planning on borrowing a car for an extended period of time, you should ask the owner to add you to their policy, rather than taking out non-owner car insurance.
What is non-owners SR-22 insurance?
If you have a driving offense on your record, like a DUI or a suspended license, you may need to file an SR-22. This document isn’t an insurance policy, but it is issued by your insurance company and indicates to the state that you are carrying an appropriate form of car insurance.
Is a non-owners policy available in my state?
Yes, non-owners policies are available in every state in the US. Depending on where you live, the rate will vary, but most policies include the same type of coverage. You might also need to file an SR-22 depending on the reason you need a non-owners policy and the laws in your state.
The Bottom Line
Whether you’re renting a car or looking to avoid a gap in your insurance history, it’s helpful to purchase non-owner car insurance when required to protect yourself in the event of an accident.
Not all providers offer non-owner insurance. If you’re looking to purchase this policy, compare quotes from Geico, State Farm, Nationwide and The General. In addition to comparing rates, also look at the provided coverage to get the policy that will give you the most value. Then, shop around every year to make sure you still have the best rate available.
The post Non-Owner Car Insurance: What It Is And Who Needs It appeared first on The Simple Dollar.
Source The Simple Dollar https://ift.tt/2RyqUQm
ليست هناك تعليقات:
إرسال تعليق