What Is Non-Owner Car Insurance and Do You Need It? – NewsRoomUS

Should you personal a automotive, it’s best to have automotive insurance coverage for it. (Duh—it’s the regulation, and it’s widespread sense!)

However what in case you sometimes drive a automotive that isn’t yours? Possibly you borrow your buddy’s truck to make your weekly Costco run. Possibly you generally lease a automotive for work or use a car-sharing service to take weekend street journeys.

Or, plot twist—perhaps you haven’t been driving in any respect. There’s been a problem along with your driver’s license otherwise you’ve been quickly with no automotive, however now you’re able to get again on the street.

Any of this sound acquainted? Then non-owner automotive insurance coverage could be for you.

What Is Non-Proprietor Automotive Insurance coverage?

Non-owner automotive insurance coverage is a legal responsibility coverage. Should you get into an accident whilst you’re driving a automotive that isn’t yours, it is going to pay for medical payments and property injury for whoever you hit. And that’s a very good factor—as a result of in case you hit someone when you’re uninsured, you would be personally accountable (aka liable) for hundreds of {dollars} of medical payments and damages!

Some non-owner automotive insurance coverage insurance policies simply cowl prices for the opposite individual. However don’t fear—you will get insurance policies that offer you extra safety, like these:

  • Uninsured or underinsured motorist coverage pays on your medical bills in case you get damage in an accident brought on by a driver who has no insurance coverage (or who doesn’t have sufficient legal responsibility protection on their very own coverage).
  • Main medical and personal injury protection protection pays your medical payments in case you get damage in a automotive wreck, regardless of who’s at fault.

These are nice coverages to have, as a result of they defend you financially in case you’re in an accident whereas driving a automotive you don’t personal.

Don’t let car insurance costs get you down! Download our checklist for easy ways to save.

That mentioned, non-owner automotive insurance coverage doesn’t cowl the whole lot. It received’t embrace collision or comprehensive insurance, as a result of these kinds of insurance coverage pay for repairs to the policyholder’s automobile. And because you don’t really personal the automobile, you received’t have any restore prices.

It’s as much as the proprietor to supply complete and collision insurance that can cowl the prices to restore or change their automobile in case you wreck it. That’s why non-owner automotive insurance coverage is typically referred to as a secondary coverage—as a result of it’s protection you get along with the first coverage that’s already on the automotive.

How Does Non-Proprietor Automotive Insurance coverage Work?

Non-owner automotive insurance coverage comes with loads of guidelines (similar to each different kind of insurance coverage). We’re going to run by means of a very powerful ones right here, so buckle up, buttercup.

Non-owner automotive insurance coverage solely covers one individual.

With most automotive insurance coverage, you pay for protection on a particular automobile. In fact that does no good in case you don’t personal a automotive, so non-owner insurance coverage is offered per individual. Which means your identify is on the coverage, and your insurance coverage solely covers you. So in case you borrow your brother’s automotive and let your pal drive it, your coverage received’t cowl any accidents that occur whereas your pal is behind the wheel.

Your legal responsibility restrict must be increased than the one on the proprietor’s main coverage.

Forty-nine states—besides New Hampshire—require automobile house owners to have legal responsibility insurance coverage. (Severely, what’s up with that, New Hampshire?) So chances are high that the proprietor already has a legal responsibility coverage on the automotive you’re borrowing. Your non-owner insurance coverage is supposed to cowl damages that exceed what the first coverage covers—and which means your legal responsibility restrict must be increased.

So let’s say your pal has the state minimal of $30,000 in legal responsibility insurance coverage. You may have a non-owner automotive insurance coverage coverage with a $50,000 legal responsibility restrict. You crash your pal’s automotive, inflicting $50,000 of injury. Your pal’s legal responsibility insurance coverage would cowl the primary $30,000 of bills, and your insurance coverage would cowl the subsequent $20,000, for a grand whole of $50,000.

You won’t should pay a deductible . . . however that doesn’t imply you received’t pay something in case you get in an accident.

One good factor about non-owner insurance policies is that they often don’t have a deductible. Which means the insurance coverage kicks in instantly, so that you don’t should pay something up entrance.

Now, in case you’re considering you possibly can stroll away free and clear like Scotch tape, we’re gonna burst your bubble. You should still should pay for a number of the damages in case you get in an accident and your legal responsibility restrict is just too low.

Let’s return to our instance: Your pal has a $30,000 legal responsibility restrict, and you’ve got a $50,000 legal responsibility restrict. However this time, you trigger $60,000 value of injury and medical payments. Your pal’s insurance coverage covers $30,000 and yours covers the subsequent $20,000 for a complete of $50,000 . . . leaving you on the hook for 10 grand!

Keep in mind, the upper your legal responsibility restrict, the higher protected you’re. That’s why it’s so necessary to get the right amount of liability insurance. (Having the next legal responsibility restrict could increase your premiums somewhat, however belief us—when one thing goes unsuitable, you’ll be pleased about that further protection!)

Who wants non-owner automotive insurance coverage? (And who doesn’t?)

The identify “non-owner automotive insurance coverage” could make it sound such as you solely want this protection in case you don’t personal a automotive in any respect—however that’s not essentially true. You might have a automotive of your personal and nonetheless want this insurance coverage. And somebody who doesn’t personal a automotive and doesn’t drive a lot could not want it. So it’s necessary to ensure that is the proper protection for you before you purchase it.

You’re almost definitely to want non-owner automotive insurance coverage in case you:

  • Borrow different individuals’s automobiles quite a bit. We already talked about why you want non-owner automotive insurance coverage in case you borrow a automotive, so we received’t cowl that once more. However we do wish to add one  actually necessary factor: Non-owner insurance coverage doesn’t cowl borrowing a automotive from somebody you reside with. If that’s what you’re doing, you need to be listed in your relative or roommate’s insurance coverage coverage.
  • Hire automobiles incessantly. From an insurance coverage standpoint, renting a automotive works quite a bit like borrowing one as a result of the rental firm already has some protection on the automotive. They’ll additionally promote you further protection. However in case you lease typically sufficient, carrying your personal non-owner automotive insurance coverage might really be cheaper than the legal responsibility insurance coverage you pay for on the automotive rental counter. (It received’t cowl injury to the rental automotive itself, so it’s best to look into getting a collision damage waiver by means of the rental firm.)
  • Use a car-sharing service like Zipcar or car2go. Automotive-sharing providers sometimes insure their automobiles with the state minimal quantity of protection. So that you’ll need the additional protection in case of a very dangerous accident.
  • Are submitting an SR-22 or FR-44 type. Some drivers should file these kinds by state or courtroom order to indicate that they’ve a minimum of the state minimal legal responsibility insurance coverage. Normally, these drivers try to get their license reinstated after it bought revoked due to one thing severe like a DUI, reckless driving or getting in an accident whereas uninsured. SR-22 and FR-44 kinds are comparable, and the foundations in your state will decide which type you want. So be sure you discover out which one is best for you. Your insurance coverage firm will file the shape in your behalf after you purchase the coverage. (Simply be sure you inform them you want the shape to be filed—they’re not thoughts readers.) 
  • Want to reinstate an expired license. Should you let your driver’s license expire, some states require you to indicate proof of insurance earlier than you will get a brand new license. (Should you personal a automotive that you just’ll be driving as soon as your license is reinstated, you’ll have to get protection for it—not non-owner insurance coverage.)
  • Are quickly with no automotive. It’s because insurers take a look at lapses in protection when assessing a driver’s threat. So let’s say you promote your automotive to repay some debt. You intend to make use of trip sharing and public transit for a short while, and also you’re saving as much as pay money for a automotive subsequent 12 months. It may very well be a good suggestion to get non-owner automotive insurance coverage within the meantime to keep away from paying increased premiums if you purchase that good, debt-free automotive later.

How a lot does non-owner automotive insurance coverage value?

That is the massive query. And as a lot as we’d love to present you a particular reply simply on your state of affairs, we will’t. (We all know, we all know.) The actual reply is it relies upon. There are loads of variables that may have an effect on the fee for non-owner automotive insurance coverage, like your earlier driving document and the way excessive your deductible is (or in case you even have one).

The excellent news is that since non-owner auto insurance coverage is a legal responsibility coverage, it’s often approach cheaper than getting comprehensive or collision insurance for a automotive you personal. The different excellent news is that even when we will’t let you know precisely how a lot non-owner automotive insurance coverage will value, we all know somebody who can!

We work with a staff of unbiased insurance coverage brokers referred to as Endorsed Native Suppliers (ELPs). They are consultants in all issues auto insurance coverage, to allow them to enable you get the protection you want. And since they’re native, you’ll be capable to work with an agent who is aware of the ins and outs of automotive insurance coverage in your space.

So, in case you want non-owner automotive insurance coverage, now you’ve bought the proper option to get it.

Connect with an auto insurance agent today.

Leave a Comment