Non-owner car insurance works in the same fashion as standard car insurance does. It’s just set up and applied differently. There are several circumstances that may lead you to regularly drive a vehicle that you don’t own, all of which car insurance companies understand and offer non-owners car insurance for those reasons. This post breaks down everything you need to know in order to under non-owner car insurance and even determine whether or not it’s in your best interest.
What Non-Owners Car Insurance is
Non-owners car insurance is selective in what it covers, but it does meet all the essentials. The following coverages are usually what is included:
- General liability coverage – Naturally, general liability is the most basic part of non-owners car insurance. Any injuries that you cause to another driver, along with damage to their car, are covered, as is the often legal responsibility. These coverage limits are usually based on the state’s minimum liability insurance requirements.
- Personal injury protection (PIP) coverage – Injuries that you sustain in an accident, regardless of fault, are covered by personal injury protection coverage, or PIP, which is there to cover you as per your non-owners policy.
- Rental car liability coverage – Rental cars are one of the primary ways to drive without owning a car. This specific non-owners coverage extends liability coverage over to them if the insurance the rental company offers is a bit out of your budget.
It should be noted that full coverages like collision and comprehensive coverage are not usually available for non-owner cars. This means that you, as the non-owner, would be responsible for any damage caused to the car in an at-fault accident and while it is parked or in storage.
When Would You Need Non-Owners Car Insurance
What specifically makes a non-owner of a car eligible for non-owner car insurance? It’s not every non-owner who qualifies –here are those that do:
- People who rent cars often – People who truly frequent rental car companies and their vehicles may find that the rental car insurance that is offered by them may add up over time. Non-owners car insurance can save hundreds of dollars annually and can also extend more coverages to the rental car. If you use a rental car for more than a month, then you should look into cheap non-owner car insurance coverage.
- Frequently borrow cars – Borrowing cars that don’t belong to you often has its limits with the owners’ personal liability car insurance. This makes having non-owners car insurance more than a necessity.
- Using a car sharing service – There are specialized car sharing companies that rotate their cars between their customers. Since these cars are owned by them like rental cars, non-owners insurance will help get the most coverage out of it.
- Drive the company car – There may be times when you drive the car from work for errand-related reasons. Your employer’s commercial car insurance policy has its limits, but non-owners car insurance does not when it comes to work vehicles.
- Won’t be driving for a period of time – Non-owners car insurance during times when you have no access to a vehicle isn’t for protection’s sake but rather for the sake of avoiding a lapse in your car insurance.
It should be noted that if you live with someone whose car you regularly borrow, you will not need to get non-owners car insurance. The household liability insurance should cover you as a resident –as long as you always have that person’s permission.
Filing a Non-Owners Car Insurance Claim
Filing a non-owners claim with your auto insurance company is done the same way as standard car insurance. After the accident or damage occurs, you would notify your provider and go through with the claims process. The one main difference is that non-owners car insurance typically doesn’t have a deductible you have to pay before filing it. Shopping for non-owners car insurance is also quite similar to shopping for regular car insurance –take advantage of the numerous free quote calculators online from insurance companies that offer it, then compare and contrast.