What is Non-Owners Insurance?

If you’re like many people, you assume that insurance essentially breaks down to “you cover things that you own in case they get damaged.” This is true, for the most part. However, this simple explanation doesn’t include the concept of non-owners insurance. This type of cheap auto insurance policy is offered by Pronto Insurance, and it’s worth taking a look at.

What is non-owner car insurance?

Before we go any further, let’s look at exactly what this type of policy is. Non-owners car insurance is a liability-only coverage for drivers who do not own a car but still need car insurance. This type of policy is very inexpensive, much cheaper than a more traditional policy. You are able to get the coverage you need for such a low monthly cost because it only covers damage you cause to other drivers (bodily injury) and their property. It offers no collision or comprehensive coverage for the vehicle you are driving or bodily injury coverage for yourself or any passengers who happen to be in the car at the time.

Why would I need non-owner insurance?

Are you a legal driver who thinks this may be the right coverage for you? To break it down in a simple way, this type of car insurance is ideal in the following circumstances:

  1. You need an SR-22 but don’t own a car
  2. You’re an occasional driver that doesn’t own a vehicle
  3. You’re in between vehicles at the moment but don’t want to go uninsured
  4. You rent vehicles frequently
  5. You use car services often, but don’t own a vehicle
  6. You don’t own a vehicle but want to avoid a lapse in car insurance coverage

What is SR-22? Do I need that?

Many readers will stop at reason number one and say “Wait-what? Is that something I should have?” Basically, an SR-22 is a certificate that states you are carrying at least the state’s minimum liability insurance. You’ll typically only need an SR-22 if your drivers’ license has been suspended or you’ve been cited after an accident or violation.

In order to be perfectly clear, the SR-22 itself is not insurance. It’s simply a piece of paper stating you have liability coverage. If you don’t own a vehicle yet need to show proof of insurance, you will need this type of non-owner policy being discussed. A non-owner insurance policy will help fill the gap between needing to show proof of liability protection without having to purchase and insure a car. You don’t want there to be any gaps in your coverage, even if there is a gap in your ability to drive.

It is important to keep in mind that you might find yourself in a situation in which your current auto insurance company doesn’t offer an SR-22. Not every company provides SR-22s, simply because of the inherent risk involved with the type of driver who needs one. If you need an SR-22 and your current company will not provide it, you may want to consider a non-owners policy. Doing it this way does require paying for a second policy, but it is important to keep in mind that the premiums on non-owners’ policies are significantly cheaper than those for traditional auto insurance policies. Because of this, it is very likely that carrying a non-owner policy as a second policy is more affordable than switching all of your coverage to a different carrier. This would also keep you compliant with state regulations, avoiding fees and insurance suspensions. This is something you’ll want to spend time looking into and discuss with your current auto insurance carrier.

How can I purchase non-owners insurance?

Although it is much cheaper than a traditional car insurance policy, it’s not all good news. These non-owners policies can be more difficult to find. You will typically have to look at a non-standard or smaller insurance company to find coverage. Don’t worry- the answer is Pronto Insurance! We offer the type of policy you’re looking for, and you can learn more and even get a quote online. It could not be any easier.

Do I need non-owner insurance if I am an occasional driver who doesn’t own a car?

This type of policy is great for drivers who rent often, borrow friend’s vehicles, or use car services to get groceries, etc. The most common of these is a person with a valid driver’s license who doesn’t own their own car but sometimes borrows from a friend, partner, or family member. Depending on the owner’s car insurance policy, they might have a permissive use policy. Permissive use extends coverage to drivers who infrequently drive the insured’s vehicle and do not live in the insured’s home. A typical policy says that a permissive user can drive the vehicle less than 12 times a year. A non-owners policy can be a good idea if their liability policy isn’t sufficient in the event of an at-fault accident. For example, let’s say you accidentally caused over $5,000 in property damage by driving through a fence and exceeded your friend’s liability limits. In most cases, you would be liable for the remaining damage which could be thousands of dollars. With a non-owners policy, you would have supplementary coverage.

Do I need this coverage if I rent a vehicle often?

Some drivers in big cities don’t own cars but travel and rent a vehicle at their destination. If you rent often enough, a non-owners policy may be cheaper than paying for the liability coverage offered by a rental company. When considering this option, keep in mind that a non-owners coverage offers no coverage for the physical protection of your rental car. You’d still pay for that damage out of pocket.

What about if I own a vehicle but don’t want to drive it very often?

You still need to maintain insurance coverage, whether you drive every day or once a month or once a year. Having gaps in your car insurance history can be a red flag once you want to drive more often and begin shopping for car insurance. Insurance companies, regardless of what your reason for not having insurance, see you as more likely to be driving uninsured. The data insurance companies look at shows that drivers without a complete insurance history are more likely to get cited or file a claim. This means a higher premium for you, or being denied coverage altogether.

If you’ve sold your vehicle and don’t plan on driving regularly for a period of time, or have one of the other situations listed above, a non-owners policy can help keep your future premiums low by keeping you in the good graces of potential insurers. Have you decided that you think a non-owner’s policy is right for you? Great! Let’s keep going!

What does non-owners insurance cover?

This policy works like a traditional car insurance policy with one major exception: with a non-owners car insurance policy, you’re limited to liability coverage only. What this means is that you won’t have comprehensive or collision coverage, which is often referred to as full coverage.

Why is this? Well, your insurance company prices your full-coverage based on the vehicle they’re agreeing to replace in a worst-case scenario. The insurance company through which you receive non-owners insurance doesn’t know the specifics of the vehicle you’ll be driving and therefore has no way to price your premium. The value of the vehicle they would need to replace through collision and comprehensive could vary, from a cheap used compact car to a brand new Mercedes Benz sedan.

So, what does it cover?

Coverage for other drivers/vehicles:
Liability insurance covers the damage you cause to someone else in an at-fault car accident. It doesn’t cover physical damage to your vehicle, but it does give you coverage for another driver’s property damage.

Like a traditional liability policy, non-owners liability will break down like this:

LimitCoverage Description
50$50,000 in bodily injury liability coverage per person
100$100,000 in bodily injury coverage per incident
50$50,000 in property damage liability per incident

Coverage for you:
Thankfully, there is a little something for you in this. Some people are less responsible than you and choose to drive without insurance. If you’re struck by a driver who does not have auto insurance, this coverage would cover you. The exact coverage details will depend on the individual policy, but this typically covers any bodily injury costs suffered by you or your passenger(s), as well as property damage to your vehicle.

What does non-owners car insurance cost?

Insurance rates for non-owners policies vary from one company to another. As with a traditional policy, high-risk drivers, like those with a DUI on their driving record, will be quoted higher rates than those deemed to be a safe driver. Along with your driving history, there are a number of other factors that inform what you pay. These include your age, where you live, and how often you plan to drive. Regardless of any of these factors, nearly all non-owner policies cost much less than you’d pay for traditional car insurance coverage.

If you’re ready to find out exactly what your non-owners car insurance will cost through Pronto Insurance, now is the time to get a quote. Don’t let your coverage lapse, even if you don’t own a vehicle right now!