Non-owner car insurance: what is it and who should have it?

The basics of auto insurance seem very simple on the surface. You have a car, you want to drive it, so you get a driver’s license and, of course, an auto insurance policy. The type of auto insurance policy is also easy to understand; get liability insurance with the minimum coverage limit and you are good to go. However, there are some cases where things get complicated. For example, what if you want to drive but don’t have a car. Or when your driving license is suspended?

Insurance companies will not give you any auto insurance policy if you don’t have a car registered in your name or if your driving license has been suspended. And walking 20 miles every day to your work or other emergency is not the best idea, and neither is driving without car insurance. This is where non-proprietary car insurance policies come into play and they can save you from a lot of trouble and even legal trouble.

The great thing about the names of some auto insurance policies is that they are self-explanatory. A non-owner auto insurance policy is an insurance policy for anyone who does not own a car. But why can’t people without cars get an auto insurance policy?

Insurance companies are risk management companies. These companies charge a fee for assuming part of the risk so that in the event of an accident caused by you, you don’t have to pay out of your own pocket. This is applicable when you have a car registered in your name. When you don’t have a car (which you own) then there is an insurable interest issue.

Insurable interest means that the car (which you don’t own) is not in your financial interest. Since you have not invested your money in the car, you have no stake in it. Why would you want to drive the car carefully? The chances of you crashing or damaging your car are greater when it’s not your insurable interest.

This is when non-owner auto insurance policies come into effect. This insurance policy allows you to get auto insurance even if you don’t own a car or if you are renting a car for a trip. Auto insurance for non-owners is the best option if you intend to drive someone else’s car or rent it often.

Non-owner car insurance coverage is exactly like liability coverage. It has three different covers, one for personal injury liability per person, one for personal injury liability for accident and liability for property damage. The coverage limit depends on the policy chosen and the price of the policy.

Keep in mind that non-proprietary auto insurance policies can be a bit expensive as they take on more risk than regular insurance policies. This is why you should compare as many insurance companies as possible and look at their prices. Get the non-owner insurance policy that costs less, has the lowest premium rates and offers the best coverage.

Non-owner insurance covers liability only and can be claimed by the other person, not by the policyholder. For example, if you cause an accident and the other person suffers injury and damage to their car or property, your liability coverage will pay for medical treatment and vehicle repairs.

The non-owner insurance policy does not cover the crash or collision insurance policy. This means that any damage to the car you are driving will not be covered by this policy, whether parked or in motion. You will have to pay for the repairs out of your own pocket. Since it doesn’t even include full coverage, if there’s damage to your car from hail, fire, earthquake, and other natural disaster or theft, well, bad luck.

Most of the time, if you own a car and want to drive, general insurance is sufficient. If you want to drive your friend’s car or maybe a car that belongs to someone in your family, you can ask them to add you as a driver to their insurance policy and that would be fine. But there are specific cases in which it is necessary to take out a non-proprietary car insurance policy.

License suspended

If for some violations your license has been suspended but you have to drive a car for emergencies and to get to the office, you can apply for a non-owner auto insurance policy (as insurance companies will not give you a general policy), along with a form SR-22 or FR-22 which proves you have an auto insurance policy. Remember that SR-22 is just a legal form that shows you have an insurance policy. It is usually provided by the insurance company once you get a non-owner insurance policy.

You are a serial car rental

Some people spend their lives avoiding the road, while others spend most of their lives there. If you belong to the latter and you rent a lot of cars, then you should get a non-owner insurance policy. It helps you save costs, provides the coverage you need to drive safely, and doesn’t require you to show a car registered in your name. Be aware that some car rental companies will charge you extra for full coverage and in the event of a collision.

The cost of a non-proprietary insurance policy depends on multiple factors, just like general auto insurance policies do. When deciding the cost of insurance, important factors such as driving record, previous insurance claims, amount of coverage, age, gender, etc. are taken into consideration.

If your driver’s license has been canceled, you will have to pay a higher amount for the policy as insurance companies see you as a high-risk individual. A figure for the average cost of a non-proprietary insurance policy would be around $ 250 to $ 650 per year. There is a chance you could get a higher quote than this estimate, but for most people, this will be a range.