We generally think of car insurance as a policy that’s attached to a specific vehicle or vehicles. For example, if you and someone else in your household have two cars that you both drive, your policy would be designed to cover those two specific cars with you two as insured policyholders.
But is that always the way that an auto insurance policy has to work? After all, there’s a wide range of circumstances for drivers with all kinds of unique needs. Can you get insurance coverage as a driver without it being attached to a specific vehicle?
As a matter of fact, you can! This type of auto insurance policy is known as non-owner car insurance, and it’s one type of non-traditional insurance we offer here at Freedom National.
In this guide, we’ll cover all of your most important questions when it comes to non-owner car insurance, including:
- What is non-owner car insurance?
- How does non-owner car insurance work?
- What does non-owner car insurance cover?
- Do you need to have non-owner car insurance?
- What circumstances require non-owner car insurance?
- How much does non-owner car insurance cost?
- What about non-owner car insurance for those who require an SR-22?
- Where can you buy non-owner car insurance?
Ready to get started? Here’s everything you need to know.
What is Non-Owner Car Insurance?
Non-owner auto insurance (also known as non-drivers insurance) is designed to provide coverage for instances when you’re driving a vehicle that you don’t own. If you were driving that vehicle and were involved in an incident where you were at-fault for whatever bodily injury or property damage might occur, your non-owner insurance policy would protect you from financial liability and, in many cases, from potential lawsuits.
Like a standard auto policy, your non-owner policy can also be customized to include additional coverage. However, the nature of a non-owner policy means that there are certain types of coverage that don’t apply. We’ll cover the specifics of what is and isn’t covered in the What Does Non-Owner Car Insurance Cover? section.
How Does Non-Owner Car Insurance Work?
Unlike an auto insurance policy, which is purchased for specific vehicles and can include multiple drivers and cars, this type of policy can only be purchased for one person. That means that if you need to cover multiple people, you’ll need to have separate individual policies. This even applies to spouses, family members, and people who live in the same household.
One benefit of these policies is that they generally don’t have a deductible, or an amount you’ll have to pay out of pocket for an incident before insurance will take over. That’s because non-owner insurance is considered ‘secondary coverage.’
Secondary coverage is designed to cover an incident only when the owner of the vehicle’s primary coverage doesn’t cover damages. As a result, there may be some instances where you have non-owner insurance and are involved in an incident where you’re at fault, but your policy isn’t required to pay for damages. In other cases, it will be. Let’s look at an example to understand this better.
Let’s say you’re driving a friend’s car while covered by a non-owner insurance policy. You cause $50,000 of damage. If your friend’s policy on the vehicle you were driving covers $50,000 in damages per incident, then their policy will cover the costs after they pay the deductible (that’s right— the policyholder is responsible for paying the deductible, though any arrangements you make personally between you two are another story).
But let’s say their policy only covers $30,000 in property damage liability. Their policy would cover the first $30,000, and your non-owner insurance would kick in to cover the remaining $20,000— assuming the amount of coverage you purchased would cover that amount.
What Does It Cover?
Non-owner insurance is primarily liability coverage, or coverage that protects you from financial liability for costs you cause to other vehicles, property, or people. It provides coverage for both property damage and personal injury you cause someone else when driving a vehicle that you don’t own and that doesn’t include you on a policy covering that vehicle.
Note that this does not include injuries to you or damage to the vehicle you’re driving, coverages that fall under comprehensive and collision coverage in traditional policies.
However, you can also include additional coverages in your policy such as uninsured or underinsured motorist liability insurance— which covers costs in the event that another driver causes the accident but they aren’t sufficiently covered by their insurance. You can also add rental car liability coverage that’s specific to rental vehicles.
Do You Need Non-Owner Car Insurance?
One of the most common questions we receive about non-owner car insurance is this— do I need it?
In fact, the circumstances when non-owner insurance is required are relatively rare compared to traditional coverage. That said, there are several instances when non-owner car insurance may be a wise choice. In some cases it provides additional peace of mind for drivers with unique circumstances, and in other cases it may be required in order to keep you legally compliant or obtain special documentation such as an SR-22.
Here are some of the most common reasons why non-owner car insurance may be the option for you:
- You rent cars often
- You borrow cars often
- You recently sold your vehicle
- You don’t plan to drive for a while
- You drive a company car
- You need an SR-22 form but don’t have a vehicle to cover
Let’s explore each circumstance in a bit more detail.
You Rent Cars Often
If you have a traditional car insurance policy, it will often extend to cover basic protections for rental vehicles. But if you don’t own a vehicle but rent vehicles on a regular basis, such as for travel, you may want to buy a non-owner policy in order to avoid having to regularly pay for the rental car insurance. This coverage, offered when you rent the vehicle and often when you’re standing out in the rental agency parking lot eager to get on your way, is dramatically overpriced per-day compared to what your own policy would average out to over time. If you’re renting a car for more than roughly 50 days a year, then a non-owner policy would be worthwhile.
Just make sure that the insurer and specific policy you purchase provides liability coverage for a rental car, and remember that you may still need to purchase a collision damage waiver from the rental agency.
You Borrow Cars Often
If you often borrow vehicles from friends and others that aren’t in your household, non-driver insurance may be wise. Even if some or all of your friends have ample coverage, it will provide you with some added peace of mind so that you’re never worried about being left liability if you’re in an accident and the car owner’s policy doesn’t fully cover the damages.
That said, if the car you borrow belongs to someone in your household or you’re frequently borrowing the same vehicle, you might not be able to use non-owner insurance and instead may need to be added to the owner of the vehicle’s primary coverage policy.
You Won’t Be Driving for a Long Time
Have you ever heard the phrase ‘lapse in coverage?’ This is a phrase that insurers use to describe drivers who have had periods where they weren’t covered by any insurance policy. In almost every case, insurance rates are higher for people who have had one of these lapses in coverage.
As a result, if you don’t plan to be driving for a while, you may be better off purchasing a low-cost non-owner policy rather than simply going uninsured. When the time does come for you to purchase a vehicle and get a standard policy, you won’t have a lapse of coverage on your record— which can make insurers consider you ‘high risk’ even if you were responsible and never drove a vehicle while uninsured.
You Need an SR-22 but Don’t Have a Vehicle
SR-22 insurance is a special kind of insurance that comes into play when you’re committed a serious driving violation, such as a DUI. SR-22s are filed by your insurer, and essentially tell the authorities that you’re properly insured. In many cases, SR-22s are a requirement of having your license reinstated after a serious traffic incident.
If you don’t have a vehicle, you still need to have an SR-22 filed. This is where non-owner insurance can come in handy. Plus, it’s less expensive than a traditional policy. That means you can fulfill your requirements to have your license reinstated without having to pay more for a standard policy you don’t need if you don’t have a vehicle.
That said, your rates in general will be higher as a result of a serious traffic violation. You also can’t count on every insurer to offer SR-22 sponsorship. Fortunately, at Freedom National we’re one of the most trusted insurers when it comes to getting you covered— even if you have a serious incident on your record and need an SR-22.
How Much Does Non-Owner Car Insurance Cost?
Is non-owner car insurance going to cost you as much as a traditional auto insurance policy? Fortunately, no. Insurers recognize that a person who occasionally drives someone else’s car is less of a liability risk than a full-time car owner and driver. That means rates are often less than those for owned vehicles. While the difference can vary, you can expect to pay roughly 15% less for a non-owner auto insurance policy than for a standard policy that’s attached to a specific vehicle.
Of course, this average will vary depending on your specific circumstances. Everything from your driving record, specific insurance needs, and other factors can determine how much your non-owner car insurance will cost you.
If you are considered ‘high-risk’ due to a DUI conviction, reckless driving, multiple traffic offenses in a small amount of time, or a record of driving without insurance, your rates will likely be significantly higher. That said, Freedom National is designed to help you get coverage even with negative events like those listed above on your driving record.
Where to Buy Insurance for Non-Car Owners
Some insurers offer non-owners insurance, but the process for purchasing it isn’t always simple or straightforward. You often won’t find information about it on their online websites, and getting a quote for it can be difficult or frustrating. After all, the majority of these companies’ work is focused on insuring drivers who own their own vehicles. That’s what they’re set up to do.
Fortunately, Freedom National is deeply experienced with providing non-car owners with insurance policies to suit their unique needs. You’ll find everything you need to create the perfect policy for you thanks to our fast online quote form, where you can provide details about your insurance needs and receive a quote in minutes. And because we work with a wide network of insurers, you can be assured that you’re getting the best possible rate.
Meanwhile, you’ll enjoy the unparalleled service offered by Freedom National. We’re committed to helping you not only get coverage but get the support you need to understand that coverage, especially when it comes to lesser-known concepts like non-owner car insurance.
Want to get covered?
Looking for more information about car insurance, including non-owner coverage and other specific needs? At Freedom National, we’re deeply experienced in providing the coverage you need to drive and the knowledge you need to thrive. Our simple process lets you fill out a quote in minutes, learn more about car insurance and common car insurance terms, and get covered right away with a customized policy just for your unique needs.
