Is Non-Owner Insurance Right For You? We Have Answers
Car insurance is an important purchase for all drivers, but it’s not required by law in all circumstances. If you don’t own a car but still drive occasionally, non-owner car insurance can provide some financial protection in the event of an accident. But is this type of policy right for you?
Understanding non-owner insurance can help you make the best decision for your needs. Here are the answers to everything you need to know about this type of insurance.
What Is Non-Owner Car Insurance?
Non-owner car insurance is a liability policy that provides coverage for drivers who don’t own a vehicle. If you don’t have a car but still drive occasionally, this kind of policy can protect you financially if you’re involved in an accident.
Most states require drivers to have some form of car insurance, but there are a few that don’t. Even if your state doesn’t require insurance, it’s still a good idea to purchase a policy if you drive regularly.
This coverage could end up saving you a lot of money if you’re ever involved in an accident, especially if the other driver doesn’t have insurance or enough coverage to pay for your damages. The last thing you want is to have a huge bill and no way to pay it.
What Are the Benefits of Non-Owner Insurance?
There are a few benefits to purchasing non-owner car insurance, even if you don’t own a car. For one, it’s typically less expensive than traditional car insurance. Because you’re not insuring a vehicle, the risk is lower. Instead of insuring your car, the policy insures you.
Another benefit is that you can cancel your policy at any time. This difference is unlike traditional car insurance, which typically requires you to keep your policy for a set period.
Lastly, non-owner insurance can provide coverage for multiple drivers. This benefit is helpful if you frequently use rental cars or are the named driver on someone else’s car insurance policy.
Circumstances Where You Might Need Non-Owner Insurance
There are a few circumstances where you might need to purchase non-owner insurance, even if you don’t own a car.
If you live in a state that requires all drivers to have insurance, you’ll need a policy even if you don’t own a car. Because there is still the possibility that you will be driving, you are still at risk of being in an accident; if you are, the other driver’s insurance will likely not cover your damages.
If you don’t own a car but frequently use rental cars, non-owner insurance can provide coverage during the rental period. Most rental car companies only offer liability coverage, which may not be enough to cover all your damages if you’re in an accident.
People that use a car-sharing service like Zipcar or Car2Go may also need non-owner insurance. These services typically only provide liability coverage, and you may be responsible for damages even if the accident wasn’t your fault.
Additionally, if you are the named driver on someone else’s car insurance policy, you may still need to purchase a non-owner insurance policy. Most car insurance policies will not cover damages if you’re in an accident while driving someone else’s car.
What Does Non-Owner Car Insurance Cover?
Non-owner car insurance typically provides liability coverage for drivers that don’t own a car. If you’re in an accident, the policy will pay for damages to the other driver’s vehicle or property and any medical expenses they incur.
Most non-owner policies will also provide some personal injury protection, which can cover your medical expenses if you suffer an injury in an accident. Some policies may also offer coverage for rental cars, although this isn’t always the case.
It’s important to note that non-owner car insurance does not provide comprehensive or collision coverage. If you’re in an accident, you will be responsible for repairing or replacing your vehicle.
What Is Secondary Coverage?
In some cases, you may be able to purchase non-owner insurance as a secondary policy. It will only provide coverage after the primary policy has been exhausted.
For example, if you’re in an accident while driving a rental car, your personal non-owner policy would kick in after the rental car company’s insurance has been used.
Secondary coverage is typically less expensive than primary coverage, but purchasing a policy with primary coverage is still a good idea if you can afford it. This is because secondary policies often have lower limits, which means they may not cover all your damages if you’re in a serious accident.
Purchasing Non-Owner Insurance
Purchasing a non-owner insurance policy is similar to buying other forms of car insurance. You’ll need to provide personal information, including your driver’s license number and date of birth. You’ll also need to give details about your driving history.
Once you supply this information, you can get quotes from different insurance companies to find the best rate. It’s a good idea to compare quotes from at least three companies before making a decision.
How Much Does Non-Owner Car Insurance Cost?
The cost of non-owner car insurance will vary depending on several factors, including your driving history, your state, and the amount of coverage you purchase. However, it’s generally much cheaper than traditional car insurance policies.
For example, a 30-year-old driver with a clean driving record can expect to pay around $200 per year for a non-owner policy with basic liability coverage. The same driver would likely pay over $1,000 per year for traditional car insurance.
These are just estimates, however. The best way to get an accurate quote is to contact several insurance companies and compare their rates.
Non-owner car insurance is a good option for drivers who don’t own a car but still need liability coverage. It’s typically much cheaper than traditional car insurance and can provide coverage for multiple drivers. Not only that, but you can cancel your policy at any time.
If you have more questions about non-owner car insurance, contact Serenity Group to find the best policy for your needs. We will work with you to find the right coverage at the best possible price. Whether you’re looking for a non-owner policy or any other type of car insurance, we can help. Give us a call today!