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Non-Owner Car Insurance: All you need to Know | Beem |

Car insurance for non-owners is only available to those who do not have their vehicles. This blog explains if you can get auto insurance if you don’t own a car. Read on to know more!
Non-Owner Car Insurance
Non-Owner Car Insurance: All you need to Know | Beem |
It is possible to insure a car you do not own if you can prove that you have an insurable interest in it. Let's learn more about it!
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A non-owners insurance policy is also known as a non-driver’s or non-owners policy. Do you wonder if you can get auto insurance without a car? If you use borrowed vehicles, car-sharing services, or rental cars, you are generally covered by non-owner car insurance.

Major car insurance companies offer non-owner insurance, which provides the minimum coverage required by your state, and optional add-ons like personal injury protection (PIP) or uninsured motorist coverage (UM). Car insurance for non-owners is only available to those who do not own their vehicles.

If you frequently borrow a friend or family member’s car, participate in car-sharing services, rent vehicles, want your license reinstated, or want to get your license back, you should consider non-owner insurance.

Can I Get Auto Insurance Without a Car?

It is possible to insure a car you do not own if you can prove that you have an insurable interest in it. As a result, you are financially invested in the vehicle and may suffer a loss if something happens to it. This reduces your chances of committing insurance fraud.

Even though a leased or financed car does not belong to you entirely, you are investing money in the car’s maintenance and repair. Even if you prove insurable interest, some states, like New York, won’t let you insure an unregistered car.

Top Ways To Get Auto Insurance Without a Car

Here are some of the best-known ways to get car insurance even though you don’t own a car:

Re-title the Car

Adding your name to a car’s title and registration is a simple way to prove an insurable interest. The owner might be willing to sell it if you live with him and the vehicle isn’t financed.

Demonstrate Financial Dependence

It is possible to prove that you have an insurable interest in a vehicle by demonstrating that you are financially dependent. It may be possible for you to convince the insurer that you have a stake in the vehicle you drive for your daily commute if you do not own a car.

Purchase a Non-owner Policy

Non-owner insurance policies are recommended if you can’t prove an insurable interest in the vehicle. Insurance for renting or borrowing vehicles is a good investment if you regularly drive someone else’s vehicle. Non-owner policies cannot be purchased if you live in the same household as someone who owns a car. If the car owner adds you, your insurance policy should be amended to include you as an additional driver.

If the vehicle’s owner has given you permission and their insurance policy does not explicitly prohibit non-named drivers, you do not need insurance to drive someone else’s car. You are protected by the vehicle owner’s auto insurance if you are involved in an accident, thanks to a feature known as permissive use.

Situation When You Won’t Able to Drive Someone Else’s Car

As per the policy, you are expressly excluded. A policy in place for the vehicle’s owner prohibits non-named drivers, or drivers not explicitly listed. However, if you have a history of high-risk behavior, it may put the owner’s insurance at risk, so they may prohibit you from driving their car.

Even if the owner’s insurance covers you in most situations, you may not be covered if you cause an accident while committing a crime or under the influence of alcohol or drugs. Instead of getting an owner’s policy, consider a non-owner policy if you regularly borrow or rent other people’s cars.

Non-Owner Insurance for Driving Someone Else’s Car

The non-owner insurance policy is designed for people who don’t own a car and do not live with someone who does. When a driver has a non-owner policy, they are covered in case of an accident, even when they are driving someone else’s.

Additionally, non-owner policies prevent a lapse in coverage, reducing future premiums. The premiums for non-owner drivers are also cheaper than for traditional drivers.

A non-owner policy provides liability coverage for bodily injury and property damage for drivers who do not own a car. A person with a valid driver’s license who does not regularly access a specific vehicle can buy non-owner insurance cheaper than a standard car insurance policy. Your eligibility for non-owner insurance may be jeopardized if you live with someone who owns a car.

What All Non-Owner Insurance Covers

In addition to borrowing or renting a car, using car-sharing services, or reinstating your license after a traffic violation, you can use non-owner insurance coverage for various things, including:

  • Accidents you cause that result in injuries to other drivers.
  • In addition to property damage, your vehicle may also be damaged.
  • Underinsured/uninsured motorist accidents.

In addition to primary coverage, non-owner car insurance provides additional coverage for drivers who are not vehicle owners. Furthermore, non-owner policies can be purchased by drivers who do not own a vehicle to meet SR-22 and FR-44 requirements. Having a car or living with someone who owns a car you use regularly does not qualify you for non-owner coverage.

Most major insurers will offer non-owner car insurance if you have a valid driver’s license, don’t own a car, and don’t live with someone who does. Insurance for non-owners is similar to insurance for owners, except that non-owner insurance is cheaper. Furthermore, since non-owner policies do not cover specific vehicles, collision, and comprehensive coverage cannot be included.

How To Get Auto Insurance Without a Car?

Renting cars, using car-sharing services, or borrowing cars from friends and family is an excellent reason to get non-owner car insurance. Here are some ways to get non-owner car insurance:

Determine if Non-owner Car Insurance is Right for you

Non-owner auto insurance can be beneficial when you are between vehicles and wish to avoid lapses in coverage. A non-owner policy is most likely unavailable if you share a car with someone who owns a car, but it depends on your insurer and the situation’s specifics. You are more likely to be disqualified from a non-owner policy if you live with someone who owns a vehicle than with a friend or roommate. A good solution is to add your name as a driver to the owner’s insurance policy if you often borrow their vehicles.

Prepare the Necessary Information

Information for identification will be required, including your name, date of birth, telephone number, address, and occupation. Information about your driving history, such as past traffic violations, DUI convictions, accidents, and license suspensions/revocations

Compare Different Quotes

You must usually call and provide the relevant information to get a non-owner car insurance quote. Online quotes for non-owners are usually not available.

Choose How to Pay Your Premium

Based on your insurance company’s policies, you may pay your premiums monthly, every six months, or annually. Electronic funds transfers, credit or debit cards, or checks in the mail are the most common forms of payment accepted by insurers.

How Much Does Non-owner Car Insurance Cost?

A non-owner car insurance policy usually costs between $200 and $500 per year. The average annual rate for non-owner car insurance policies is $380. You must pay a premium based on several factors, including your ZIP code, age, and driving record.

Auto insurance for non-owners varies in cost, but it is usually less expensive than traditional coverage. The insurance industry views people who don’t own cars as less risky since they don’t drive as much. The following factors influence costs:

  • Liability insurance coverage you need
  • Driving history
  • Geographical location

You may need high-risk auto insurance depending on your driving record. In such a case, a non-owner policy will likely be more expensive than one with a clean record.

In addition to the following, drivers may be considered “high-risk” if their records include the following:

  • DUI convictions
  • Driving recklessly
  • Within a short period, multiple traffic offenses have occurred
  • Insuring yourself without insurance

Your state can require higher liability limits for your license if it is being reinstated after a suspension. You’ll have to pay a little more if you want higher limits.

You may need to file an SR-22 form in some circumstances. If a driver’s license has been suspended or revoked, or if they have been involved in a major traffic violation, an SR-22 is required by the state to prove financial responsibility. SR-22 non-owner insurance forms won’t affect your insurance rates, but insurers may charge up to $25 for filing.

Conclusion

Can I get auto insurance without a car? You can. However, it is important to maintain continuous insurance coverage if there are gaps in car ownership by purchasing a non-owner policy. You can qualify for discounts if you maintain continuous coverage. You can also be protected from rate hikes when you have a coverage gap.

The term “regular access to a car” is defined differently by insurers. Some see it as using the vehicle only once a week or just four times a month as regular access. You can even buy a non-owner policy when you own a vehicle. The supplementary non-owner policy can be taken out with another company if you must obtain a certificate, such as an SR-22 or FR-44. The extra costs associated with this strategy are usually minimal since this secondary policy will not cover your vehicle.

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Author

Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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