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

For those who personal a automotive, it is best to have automotive insurance coverage for it. (Duh—it’s the legislation, and it’s frequent sense!)

However what when you often drive a automotive that isn’t yours? Perhaps you borrow your buddy’s truck to make your weekly Costco run. Perhaps you typically hire a automotive for work or use a car-sharing service to take weekend street journeys.

Or, plot twist—possibly you haven’t been driving in any respect. There’s been a problem together with your driver’s license otherwise you’ve been briefly with out a automotive, however now you’re able to get again on the street.

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

What Is Non-Proprietor Automotive Insurance coverage?

Non-owner automotive insurance coverage is a legal responsibility coverage. For those who get into an accident whilst you’re driving a automotive that isn’t yours, it’s going to pay for medical payments and property injury for whoever you hit. And that’s a very good factor—as a result of when 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 particular person. 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 when you get damage in an accident attributable to 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 when you get damage in a automotive wreck, irrespective of who’s at fault.

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

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

It’s as much as the proprietor to supply complete and collision insurance that may cowl the prices to restore or substitute their automobile when you wreck it. That’s why non-owner automotive insurance coverage is typically known 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 a number of guidelines (similar to each different kind of insurance coverage). We’re going to run via a very powerful ones right here, so buckle up, buttercup.

Non-owner automotive insurance coverage solely covers one particular person.

With most automotive insurance coverage, you pay for protection on a selected automobile. After all that does no good when you don’t personal a automotive, so non-owner insurance coverage is bought per particular person. Which means your identify is on the coverage, and your insurance coverage solely covers you. So when you borrow your brother’s automotive and let your good friend drive it, your coverage gained’t cowl any accidents that occur whereas your good friend 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 homeowners to have legal responsibility insurance coverage. (Significantly, what’s up with that, New Hampshire?) So likelihood is 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 good friend has the state minimal of $30,000 in legal responsibility insurance coverage. You’ve a non-owner automotive insurance coverage coverage with a $50,000 legal responsibility restrict. You crash your good friend’s automotive, inflicting $50,000 of harm. Your good friend’s legal responsibility insurance coverage would cowl the primary $30,000 of bills, and your insurance coverage would cowl the following $20,000, for a grand whole of $50,000.

You won’t must pay a deductible . . . however that doesn’t imply you gained’t pay something when 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 straight away, so that you don’t must pay something up entrance.

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

Let’s return to our instance: Your good friend 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 harm and medical payments. Your good friend’s insurance coverage covers $30,000 and yours covers the following $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 might be. That’s why it’s so essential to get the right amount of liability insurance. (Having the next legal responsibility restrict might increase your premiums slightly, however belief us—when one thing goes improper, you’ll be thankful for 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 when you don’t personal a automotive in any respect—however that’s not essentially true. You’ll 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 might not want it. So it’s essential to ensure that is the correct protection for you before you purchase it.

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

  • Borrow different folks’s automobiles lots. We already talked about why you want non-owner automotive insurance coverage when you borrow a automotive, so we gained’t cowl that once more. However we do need to add one  actually essential factor: Non-owner insurance coverage doesn’t cowl borrowing a automotive from somebody you reside with. If that’s what you’re doing, you have to be listed in your relative or roommate’s insurance coverage coverage.
  • Lease automobiles steadily. From an insurance coverage standpoint, renting a automotive works lots 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 when you hire typically sufficient, carrying your personal non-owner automotive insurance coverage may really be cheaper than the legal responsibility insurance coverage you pay for on the automotive rental counter. (It gained’t cowl injury to the rental automotive itself, so it is best to look into getting a collision damage waiver via the rental firm.)
  • Use a car-sharing service like Zipcar or car2go. Automotive-sharing providers usually insure their automobiles with the state minimal quantity of protection. So that you’ll need the additional protection in case of a extremely unhealthy accident.
  • Are submitting an SR-22 or FR-44 kind. Some drivers must file these types by state or courtroom order to indicate that they’ve at the very least the state minimal legal responsibility insurance coverage. Normally, these drivers try to get their license reinstated after it obtained revoked due to one thing severe like a DUI, reckless driving or getting in an accident whereas uninsured. SR-22 and FR-44 types are comparable, and the principles in your state will decide which kind you want. So you should definitely 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 to inform them you want the shape to be filed—they’re not thoughts readers.) 
  • Want to reinstate an expired license. For those who let your driver’s license expire, some states require you to indicate proof of insurance earlier than you will get a brand new license. (For those who 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 briefly with out a automotive. It’s because insurers have a look at lapses in protection when assessing a driver’s danger. 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 time, and also you’re saving as much as pay money for a automotive subsequent 12 months. It might be a good suggestion to get non-owner automotive insurance coverage within the meantime to keep away from paying increased premiums once 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 offer you a selected reply simply on your state of affairs, we will’t. (We all know, we all know.) The true reply is it relies upon. There are a number of variables that may have an effect on the associated fee for non-owner automotive insurance coverage, like your earlier driving document and the way excessive your deductible is (or when you even have one).

The excellent news is that since non-owner auto insurance coverage is a legal responsibility coverage, it’s often means 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 known as Endorsed Native Suppliers (ELPs). They are specialists in all issues auto insurance coverage, to allow them to make it easier to get the protection you want. And since they’re native, you’ll have the ability to work with an agent who is aware of the ins and outs of automotive insurance coverage in your space.

So, when you want non-owner automotive insurance coverage, now you’ve obtained the right solution to get it.

Connect with an auto insurance agent today.

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