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What Drivers Need to Know About Non-Owner Car Insurance

Even if you don’t own a car, you might need your own auto insurance coverage. A special kind of policy called non-owner car insurance should fit the bill.

Non-owner car insurance provides liability coverage when you’re renting a vehicle or borrowing someone else’s car. This liability coverage pays for injuries and property damage that you cause to other drivers and their passengers.

A non-owner auto insurance policy might be right for you if:

  • You’ve been convicted of a DUI or other serious violation and your state requires you to file an SR-22 form — known as FR-44 in some states — to get a driver’s license or to get yours reinstated. These forms prove that you have car insurance. A non-owner policy will suffice if you don’t own a car.
  • You rent cars frequently. A non-owner policy might be cheaper than paying for the rental car company’s liability insurance every time.
  • You use a car-sharing service such as Zipcar. A non-owner policy supplements the liability coverage the car-sharing service provides. You might want this extra protection if you have savings or other assets to protect in case an accident victim sues you.
  • You borrow others’ cars frequently. Normally, if you cause an accident while driving a friend’s car, their insurance would pay. But if the costs exceed your friend’s liability limits, you could be on the hook for the remainder. Non-owner car insurance would supplement your friend’s coverage in this case.

If you fit one of these descriptions and are interested in non-owner car insurance, here are three well-known companies that offer the coverage:

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