Unendorsed personal auto policies would refuse to provide liability coverage for
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If you are a licensed driver who doesn’t have car insurance, you still may have a need for car insurance. Sounds strange? Consider this: If you are someone who often borrows or rents cars, you might want liability insurance to help protect your assets, like your house and savings. That’s where non-owner car insurance comes in. It can also get you out of other types of jams, such as being in-between vehicles or if your state requires an SR-22 (or FR-44) form. What Is Non-Owner Car Insurance?Non-owner car insurance is a liability policy for folks who don’t own a car but who need car insurance, such as someone who frequently rents cars or someone who is required to show proof of car insurance (such as an SR-22). Liability car insurance coverage pays for damage and injuries to others if you cause an auto accident. For example, if you cause an accident in a car you don’t own and someone else is hurt, non-owner car insurance could pay for their medical expenses. A non-owner car insurance policy may also contain other state-required coverages, such as uninsured motorist or medical payments coverage, but the primary focus of the policy is liability insurance. Non-owner car insurance is a “named insured” policy, meaning only the person listed on the policy is covered. A few car insurance companies will apply the coverage to a spouse, while many will not. If both you and your spouse need non-owners auto insurance, make sure the policy you’re buying gives coverage to both of you. Related: Can I Buy Insurance for a Car I Don’t Own? How Does Non-Owner Car Insurance Work?If you cause an accident in a borrowed vehicle, non-owner car insurance helps pay for the damage or injuries of others through the liability coverage the policy provides. Non-owner insurance is secondary to any auto insurance the car owner has on the vehicle. For example, say you cause an accident while driving a friend’s car and your friend has bodily injury liability limits of $25,000, but the other driver’s medical bills are $38,000. That leaves you on the hook for the outstanding $13,000. If you have a non-owners policy with a $50,000 limit for bodily injury liability coverage the $13,000 would be covered. What Does Non-Owner Car Insurance Cover?If you cause a car accident—while driving a rented car or other borrowed vehicle—non-owner car insurance’s liability coverage covers:
Depending on your state and insurance company, you may be able to get medical coverage with non-owner car insurance policy, such as:
Non-owner car insurance is a secondary coverage, meaning it kicks in after any primary coverage pays. For example, if you borrow a friend’s car and cause an accident, your friend’s car insurance pays first, up to the policy limits. If the policy’s liability limits are exhausted, your non-owner car insurance can then pay (up to your policy limits). What’s Not Covered by Non-Owner Car Insurance?While non-owner car insurance is designed to cover a driver’s basic liability insurance needs, there are several common exclusions:
When to Consider Non-Owner Car InsuranceThere are a few reasons why it can be worth getting non-owner car insurance:
Reasons You Don’t Need Non-Owner Car InsuranceHere are some reasons you wouldn’t need non-owner auto insurance:
How Much Does Non-Owner Car Insurance Cost?The average cost of non-owner car insurance is $748 a year, according to our analysis of annual rates from top auto insurance companies. Non-owner car insurance costs have a large range, so it’s worth comparing car insurance quotes to find the best price. Auto-Owners is the cheapest for non-owner car insurance at $202 per year, while Nationwide is the most expensive at $1,361, among the companies we analyzed. The cost of a non-owner car insurance policy will depend on several factors, including your state and car insurance company. Here are some other common pricing factors:
Who Offers Non-Owners Car Insurance?Most car insurance companies don’t advertise whether they sell non-owner car insurance and some car insurance companies might only offer non-owner car insurance to existing customers. For example, we reviewed a Progressive Insurance policy that says a non-owner car insurance policy is not available at the time of a new policy purchase but is available to existing customers who choose to endorse all vehicles off of the policy. For example, if you have a policy with Progressive but get rid of your car, you may be able to choose the non-owners endorsement to maintain your car insurance. Here are some insurers that sell non-owner car insurance. Keep in mind, these companies might not sell non-owner car insurance in every state and you may need to be an existing customer to be eligible to purchase it.
If you’re not sure where to turn, an independent auto insurance agent can help you find a policy. Also, review the policy to make sure it fulfills your needs. For instance, if you want non-owners insurance because you frequently rent cars, make certain the policy doesn’t limit how often you can rent cars. Best Car Insurance Companies 2022With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to. Non-Owned Car Insurance for BusinessesIf you own a business and have employees who sometimes use their personal cars for work reasons, such as making a delivery, you may need non-owned car insurance. It will extend the liability coverage from your commercial auto policy to employees’ personal cars. It’s intended for cases where employees use their personal vehicles only occasionally for work. Non-Owner Car Insurance FAQCan you get car insurance without a car?Yes, it’s possible to get car insurance without owning a car. A non-owner car insurance policy provides liability car insurance if you cause an accident in a car you don’t own. Non-owner insurance is secondary coverage to any car insurance the owner has on their vehicle. A non-owner car insurance policy is helpful if you regularly rent cars, borrow a friend’s car often or your state requires you to acquire an SR-22. Carrying a non-owner insurance policy can prevent an insurance coverage gap if you’re in between cars. What should I do if I have non-owner car insurance and I buy a car?If you buy a car, you’ll need to get a traditional car insurance policy. Non-owner car insurance doesn’t cover you if you own a car. A good way to start your car insurance shopping journey is to compare car insurance quotes from several companies. Look for a company that offers the coverage you want at a reasonable price and that has a good reputation for customer service. Here are the best car insurance companies. Does non-owner car insurance cover rental cars?Non-owner car insurance provides liability coverage, which pays for property damage and injuries to others if you cause a car crash. But it won’t pay for damage to the rental car itself. If you want coverage for damages to a rental car, you’ll need to consider other options, such as coverage from the car rental agency or your credit card company. Related: Don’t get ripped off at the car rental counter Which of the following would not be covered under a personal auto policy?The Personal Auto Policy may be used to insure all of the following, except: A motorcycle; A motorcycle would not be covered unless added by endorsement.
Which of the following losses would be covered under the collision section of a personal auto policy?What is collision coverage? This coverage pays for damage done to your vehicle if it collides with another object, such as another car, a utility pole, or fence. This coverage also covers damage for a hit-and-run accident.
What is a personal automobile policy?A personal auto policy is insurance on your personal vehicle. It may include liability, medical payment coverage, comprehensive, or collision coverage, depending on your policy.
What are the three major parts of a personal auto policy?Most auto insurance policies contain three major parts: liability insurance for bodily injury, liability insurance for property damage and uninsured/under-insured motorists coverage.
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