Non Owners Car Insurance
Even if you don’t own a car there are many situations where it makes sense to carry a non-owners car insurance policy. We will review below the best situations to have car insurance without owning a car. In addition, we will look at the coverage needs of a non-owners insurance policy as the needs will be different from when you own your car. Finally we will reveal non-owner car insurance companies and the steps you should take to get car insurance without owning a car.
1) Non-Owner Auto Insurance – SR22 Insurance
A good fit for a non-owners auto insurance policy is for people who need to meet the financial requirements of SR-22 paperwork. Individuals who have had their licensed suspended or revoked are often required to file a SR 22 form in the state they live and maintain auto insurance. Since drivers will be without a car for a period of time, buying a non-owners insurance policy will be the most cost effective means to keep car insurance up to date.
SR22 Non-Owner Tip – A car insurance company needs to be authorized by the state they provide insurance to issue a SR22 form. Make sure the car insurance company you are working is able to file the necessary SR22 paperwork with the state you live. See below for a review of non owner companies and how to find the best non owner coverage.
2) Non-Owner Auto Insurance – Renting A Car
Paying for car insurance from a rental car company is not very cost effective, especially if you rent cars frequently. A car rental company will only be concerned with you carrying the state minimum coverage for liability and will offer you other coverage, such as collision damage waiver, to make sure their cars are fully protected. In addition, when purchasing insurance from a rental company you only have one choice, you must go with the pricing they present to you. Buying a non-owners auto policy is a great way to obtain coverage for renting a car. This is because you can obtain the right level of coverage you will need as well as shop around with different companies to find pricing that will be more attractive than a rental car company can provide.
Non-Owners Rental Car Tip – A Non-owner car insurance policy often will not cover you if you need to rent a car outside the US. Typically, your coverage will only include the US, US territories or Canada. If you are traveling to other countries, like Europe, you will need to get additional coverage. See below for a review of non owner companies and how to find the best non owner coverage.
3) Non-Owner Auto Insurance – Borrowing A Car
To cut back on your cost you may be in the position where you don’t own an auto, but occasionally are in need of using a car. Maybe you are able to borrow the car of the roommate or friend? Any damages you may incur when borrowing a car will typically be covered by the auto owner’s policy. It is a good idea to check with the owner of the car to make sure you are added on their policy. Most car insurance companies will not provide a non-owners insurance policy for a car being used in the same household. A good fit for a non-owners auto policy when borrowing a car is to add supplemental coverage to the existing coverage the owner already has. For instance, if you are in an accident and damages are more than the minimum coverage on the existing owner’s policy, a non-owner’s policy will kick in and provide additional coverage.
Borrowing A Car Tip – Check to see the coverage levels of the person you will be borrowing the car from. Do they carry the state minimum insurance requirements or are their coverage levels higher. See below for a review of non owner companies and how to find the best non owner coverage.
4) Non-Owners Insurance – Continuous Coverage
Another good use of a non-owners policy is when you are without a car and expect to get a car in the future. Many states will allow car insurance companies to use continuous car insurance coverage as a factor in determining your pricing on car insurance. If you will be without a car and eventually will get a new car, one of the first questions you will be asked is if you have coverage currently. A non-owners car insurance policy will provide ongoing coverage and will help keep your premiums low for when you get a policy for your own car.
Insurance Coverage – Non-Owner Auto Insurance
It is important to remember auto insurance is required in some form by each state in the US. Not carrying insurance can result in fines or losing your driving privilege. The type of coverage will vary in every state, but there are common coverage’s found in a non-owners car insurance. The most important coverage is the liability coverage, which will cover you and your family’s assets in case of a lawsuit. An additional coverage to consider is uninsured motorist coverage. Since the national average of uninsured motorist is 15% and close to 25% in some states, uninsured motorist coverage will protect you in case you are in an accident with someone at fault not carrying car insurance. The areas typically not covered in a non-owners policy are collision and comprehensive coverage as well as towing and rental car reimbursement.
How Much and Where Should I Go?
The cost of getting non-owners car insurance will be most influenced by your driving record, the size of liability coverage and also where you live. Since you will only be getting liability coverage, the cost of your non-owner policy should be less than purchasing car insurance for a car you own. The best way to find the lowest quotes is to shop around. Below is a review of the steps to get car insurance quotes without owning a car.
How To Get Car Insurance Without A Car
1) Verify Insurance Will Be Needed
- a. SR22 Filing – If you are without a car and need to maintain financial responsibility by filing a SR22 then a Non-Owners should be a good fit.
- b. Car Renting – If you frequently rent cars then a non-owners policy should be a good choice.
- c. Car Borrowing – If you are borrowing a car from someone in your household, their coverage should cover you. It is a good idea to check with the person you are borrowing the car to make sure there coverage covers you. Also check to see what their coverage levels to make sure you are fully protected.
2) Determine Level of Coverage – The starting place should be the minimum amount required by the state you live. The most important coverage for a Non-Owners auto policy will be liability coverage. To determine the minimum amount an agent outlined in the next step should be able to help.
3) Contact a car insurance agent. There are 2 routes to go when looking for car insurance without a car.
a. The first is you can contact the car insurance company directly. Either someone you have worked with or a reference from a friend or family member. Some car insurance companies don’t offer non-owners car insurance so you may not get much information with this choice. See our list of Non Owners companies below.
b. The second option is to work with an independent car insurance broker who has relationships with numerous car insurance companies. A good way to find an independent agent is on the Independent Insurance Agent website. Click on the “Find An Agent” which is located on the menu bar at the far right. This will likely present the most options and help you find lower pricing as an independent agent will have more knowledge of which companies in your area provide competitive pricing and offer non-owners car insurance.
4) Once you have a couple quotes it is time to select the best offer. Obviously, price is important and should influence your decision. It also is a good idea to select a well known company. The last thing you want is to work with a weak company with limited resources if you need to file a claim.
Non-Owner Car Insurance Companies
Below is a review of the some of the larger car insurance companies offering a non-owners car insurance policy. Details may vary based on the state you live in. Please be sure to check with the company to verify the information.
Progressive – Progressive will not offer you a non-owners policy over the phone. You can contact their main number 1-800-Progressive and ask for a local agent based where you live. The agency provided typically actively works with Progressive and should be able to help you setup a Non Owner policy.
Geico – Offers a Non-Owner policy. It is best to contact their main number 1-800-861-8380 to get a quote over the phone. Geico indicated that if you borrow a car the car owner should have you covered on their policy. The shortest policy period is for 6 months.
State Farm – Provides liability coverage for a non-owner policy. If you are borrowing a car they suggest the owner to carry guest liability coverage. The shortest policy State Farm offers is 6 months. It is best to contact a local office where you live or have State Farm direct you by calling 1-800-782-8332.
Farmers – Has liability coverage for a non-owner policy. 3 Criteria of non-owner policy is the car can’t be registered to you, car can’t be someone from your household or car can’t be from your employer. Farmer’s most common policy is for a 6 month period.
Nationwide – Provides liability coverage for a non-owner policy. Nationwide offers a 6 month policy.
USAA – USAA most common policy is for a period of 6 months. They provide Non-owners policies.