Factors That Can Influence Your Non-Owner Insurance Coverage

Factors That Can Influence Your Non-Owner Insurance Coverage

Although drivers are legally required to own an auto insurance policy for vehicles they own, not all drivers own vehicles. Frequent drivers who do not own a vehicle themselves should purchase non-owner insurance as a safeguard in case of an accident. Like traditional auto insurance, non-owner insurance rates vary based on a handful of factors unique to each driver. Understanding the factors influencing your coverage can help you make informed decisions and potentially save money on your monthly premium. Let’s dive into the main elements insurance providers consider when determining non-owner insurance coverage and rates.

Amount of Coverage

Non-owner insurance policies do not include a standard amount of coverage from provider to provider. Besides minimum liability coverage mandated by state law, drivers can include additional types of coverage to pay damages for personal injuries or from underinsured drivers. Evaluate your personal needs and potential risks to determine the right amount of coverage.

Personal Information

Insurance providers consider key information about an individual, such as their age, gender, and marital status, when calculating non-owner insurance rates. These details reflect the risk level associated with certain drivers being more likely to get into an accident than others. For example, younger drivers generally pay higher premiums due to perceived inexperience. Similarly, male drivers often face higher rates compared to female drivers, as statistics show they are more likely to be involved in accidents.

Driving History

Your driving history plays a crucial role in determining your non-owner insurance rates to gauge your level of risk. A clean driving record can result in lower premiums, as it indicates a lower risk of future claims. Conversely, a history of accidents, traffic violations, or DUIs will likely increase your rates. Maintaining a clean record not only benefits your safety but also helps keep your insurance costs down.

Credit Score

Many insurance companies use credit scores to assess risk and set premiums. A good credit score reflects financial responsibility and shows that you are likely to pay your premium on time. Drivers with low credit scores are more likely to file insurance claims and may pay up to twice the amount for insurance compared to those with good credit scores. Improving your credit score by paying bills on time and reducing debt can positively impact your insurance rates.

Where You Live

Your state, city, and neighborhood all influence your non-owner insurance coverage. Each state sets its own requirements for minimum liability insurance, and ZIP codes can affect insurance rates based on where more claims are filed. Urban areas with higher traffic and accident rates often lead to higher premiums compared to rural areas. Additionally, regions with higher crime rates may also see increased insurance costs.

Non-owner insurance protects drivers from paying out-of-pocket costs following an unforeseen accident. Drivers should consider their options before selecting an insurance provider and coverage plan. Serenity Group helps drivers who don’t own a vehicle find cheap non-owner auto insurance online. Contact our team today for more information!