Everything You Need To Know About Non-Owner Car Insurance

Car insurance is a necessary part of owning a vehicle, as driving a car without insurance can lead to all sorts of legal issues and problems for everyone involved. However regular insurance normally ties to a specific vehicle, but many drive cars they don’t own and can’t get insurance for. That’s why non-owner car insurance is an option. Here’s everything you need to know about it.

What Is Non-Owner Car Insurance?

The first thing you need to know is what non-owner car insurance is and how it works for you. Simply put, this insurance covers people who don’t own vehicles but still drive frequently. Rather than insure the vehicle, this policy insures the driver, so they have coverage no matter what vehicle they’re in.

What Can It Cover?

This type of insurance is very useful for anyone who doesn’t own a vehicle, but it doesn’t cover everything. This insurance gives you bodily injury and property damage coverage in most cases, with the exact amounts depending on your provider’s plan. It is perfect for most situations and will cover most accidents and incidents involving a vehicle.

How It Works

Unlike normal insurance policies, non-owner car insurance follows the driver rather than the vehicle. Traditional auto insurance covers one specific vehicle and anything that happens to the car, while its counterpart insures a person no matter what vehicle they drive.

Secondary Coverage

Because non-owner insurance applies to a person rather than a vehicle, this insurance is better as a secondary coverage plan rather than a primary one. Whether you have non-owner or traditional auto insurance, it is a requirement for driving on any road in the U.S. Having both types of insurance may be best as non-owner insurance can act as a secondary coverage option to help pay for anything the primary insurance plan does not.

Why Is It Necessary?

Legally speaking, there’s not a huge incentive to get non-owner car insurance unless you often drive a vehicle you don’t own or are without insurance. However, it can make a huge difference financially if you do ever need to use your vehicle’s insurance and it comes up short of what you need to pay. Non-owner insurance helps you pay the difference and get the treatment you need if something does happen.

Problems with Driving Uninsured

If the car you drive doesn’t have insurance, you may have legal issues if you don’t have non-owner insurance to protect yourself. Driving without insurance increases your financial risk, as you will pay a lot more if something happens, and legal risk, as there are punishments for driving uninsured.

Fines and License Suspension

Each state has specific regulations when it comes to enforcing consequences for people who drive without insurance. However, in most states, their policy is to fine someone the first time they break the law. Repeat offenders receive penalties that increase in severity, including a license suspension.

People Who Should Get Non-Owner Car Insurance

While this insurance type is very useful for many, it won’t benefit everyone. The extra coverage the plan offers isn’t worth the money you put into it if you don’t make use of the plan. That’s why you should only pay for non-owner car insurance if you know you will use it frequently. Here’s a look at some who should consider non-owner insurance, as they’ll benefit from the commitment.

Frequent Drivers

Anyone who doesn’t own a vehicle, and needs to borrow the cars of others to get around. If you find yourself asking friends and family members to borrow their cars on a regular basis, then non-owner insurance is exactly what you need. However, this isn’t true if you keep borrowing the same vehicle, as it may be more expedient for your family and friends to place you on their insurance plans rather than buying your own.

Car Renters

Another reason to get non-owner insurance is if you often rent cars for business trips and other travel. Car rentals can be expensive, especially when you add on their extra insurance rates. Doing it once in a while won’t mean much, but frequent rentals can cost more than you can save with the use of non-owner insurance.

Ride Share Drivers

Ride-sharing is becoming more popular every day, with more drivers and users switching over to the system. Drivers normally own their vehicles and can invest in extra insurance through other means, but it has its limitations. So, if you utilize ride-sharing frequently, consider investing in non-owner insurance to increase your coverage in case of an accident or other issue.

How To Get Non-Owner Insurance

If you believe you would benefit from non-owner car insurance, then you need to know how to purchase it. It isn’t too different from getting regular insurance; however, you need to find a provider who offers this insurance type. Most large companies offer non-owner car insurance, but many don’t advertise it, and smaller companies may not offer it at all. You’ll need to call around to find some companies that do offer the service or check online for lists of nearby companies with non-owner insurance plans.

Shop Around

When you start looking for potential insurance companies, never commit to the first one you talk to. Call multiple providers, create a list of several quotes to find cheap non-owner auto insurance, and choose the three you like the most. Use these quotes to negotiate for the best deal and lower your premium costs.

Necessary Information

The last thing you need to know about non-owner car insurance is the information you need to bring to your potential plan holder. When you do find your perfect plan, you’ll need to provide certain information, and it’s best to prepare it beforehand. You’ll need to provide your basic information (i.e., your name, birthday, and current address), your driver’s license number, and a payment method. Some auto insurance providers will require more information, but that’s the basic level of information most companies require.

So, if you ever find yourself needing more coverage but you don’t own a vehicle, purchasing non-owner car insurance is the way to go. Find a non-owner auto insurance plan and get the legal protection you need to help ready you for the road, even if you’re borrowing a car from a friend or driving a rental.