Non-owner auto insurance does not cover a specific automobile, but a particular person. Let’s say you carry a non-owner car insurance policy because you often borrow your friend’s car. If you’re liable for an accident while driving it, your policy can help cover the cost of repairing the other driver’s vehicle. Non-owner car insurance is tied to the policyholder, so if you borrow cars from multiple people, you’re covered, regardless of which vehicle you drive.
How Does Non-Owner Car Insurance Work?
Non-owner car insurance policies provide liability coverages, typically with no deductible. This type of auto insurance provides secondary coverage. If you’re involved in a crash, the automobile owner’s car insurance policy must pay first, and if it doesn’t cover all costs, your non-owner policy kicks in. However, non-owner auto insurance only provides liability protections. So if you total someone’s vehicle and the owner does not carry collision coverage, you could be liable for replacing their car. Non-owner policies also do not offer optional coverages such as rental reimbursement and towing, because they cover a person, not a specific automobile. Non-owner car insurance policies must meet mandated minimum requirements. For example, Missouri automobile owners must carry at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage liability coverage per accident. So if you purchase a Missouri non-owner policy, it must meet or exceed those minimum coverage levels.
What Does Non-Owner Car Insurance Cover?
Non-owner car insurance only provides bodily injury liability and property damage liability coverages. If you’re at fault in an accident, your policy’s property damage liability coverage would help pay to repair the other driver’s automobile. Likewise, if the other driver sustains injuries, your non-owner bodily injury liability coverage could help pay their medical expenses. Some insurers also offer medical payments and uninsured and underinsured motorist bodily injury coverages when writing non-owner auto insurance policies.
What Isn’t Covered by Non-Owner Car Insurance?
Non-owner auto insurance does not include collision, comprehensive, or medical payments coverages, so it does not protect the car you borrow, you, or your passengers. Also, if your car is stolen while it’s in your possession, your non-owner policy will not pay to replace it.
Who Needs Non-Owner Car Insurance?
Not all drivers need non-owner auto insurance. Those who do may include:
People who often borrow cars, but don’t own one. Drivers who frequently rent cars and want liability protection that exceeds coverage offered by the rental company. People who frequently rent vehicles but do not want to purchase liability coverage offered by the rental company.
Business owners who require employees to use their personal automobiles for work activities may also benefit from carrying a non-owner car insurance policy, in case a worker has an accident while on the job. Business owners should also include all employee-owned cars on their commercial auto insurance policy.
Who Doesn’t Need Non-Owner Car Insurance?
Motorists who own a vehicle, carry all required insurance coverages, and rarely borrow or rent vehicles do not need non-owner auto insurance.
How To Get Non-Owner Car Insurance
Some, but not all, auto insurance companies offer non-owner policies. Check with your agent to find out if your provider offers the coverage. The process for getting non-owner car insurance is similar to getting any type of insurance. You enroll with the insurance company either online or via phone. You provide key information and receive a quote. If you agree to the terms, you can accept the policy. You then begin making regular premium payments and receive the protection.
How Much Does Non-Owner Car Insurance Cost?
Non-owner auto insurance policies usually cost less than the liability coverage offered in standard policies. Rates can vary depending on a driver’s driving history, coverage levels, and location. However, as with standard policies, high-risk drivers pay higher non-owner premiums than lower-risk motorists. Typically, non-owner policies do not have deductibles.
What Is SR22 Insurance?
An SR22, also called a certificate of financial responsibility or FR44, is not a type of insurance. It’s a form that declares you meet a state’s minimum auto liability coverage requirements. Courts order some drivers to submit an SR22 in certain situations. Typically, a court will inform you that you must attend a hearing, at which time a judge will order an SR22 filing. Reasons a court might demand you file an SR22 can include:
Driving without sufficient insurance coverageDUI convictionExcessive at-fault accidentsExcessive driving citations in a short amount of timeFailure to pay child supportHolding a hardship license following the revocation or suspension of your driver’s license
Typically, your insurance company can file an SR22 on your behalf and add the endorsement to your policy. If your carrier does not offer an SR22 endorsement, you must purchase a new policy from an insurer that does. SR22 filing costs vary, but typically run around $25. Usually, drivers who are required to submit an SR22 must maintain coverage for a specified period. Drivers who are required to submit an SR22 and fail to comply may face suspension of their driver’s license and automobile registration. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
