Non Owner Car Insurance Tips

Most of us learn driving when actually we don’t own a car. This is the crux for non owner car insurance. You are not the owner but you do drive. Now, since you are behind the wheel there is no reason you for you to not own a car insurance policy. Not having a car registered under your name would ask for a non owner car insurance policy. A non owner car insurance policy would generally cost less than a policy bought by a car owner. Standard cost of annual premium under non owner auto insurance is around $300 to $500. Generally, non owner’s auto insurance policies would only provide liability coverage. Liability insurance will protect you when you are proved to be at fault and the car accident causes damage to a third party (individual) or his/her property. A perfect situation for an individual to buy a non owners car insurance is when he/she rents a car quote often.


Non Owner Car Insurance Policy Exclusion List

A typical non owner insurance policy will NOT include the following mentioned coverage’s:

The reason being that the car you are driving is not registered or attached to the non owner’s policy:

  1. Towing and Rental Reimbursement
  2. Collision and
  3. Comprehensive Coverage
  4. Coverage for equipment’s and custom parts.
  5. Labor charges for towing if any



Facts About Non Owner Car Insurance Policy

  • Non owner car insurance policy will not give you cover for medical and physical damage. Medical coverage can be bought as a rider (additional coverage) depending on the availability with your car insurance company. Some insurers may offer these services. You will have to check with them.
  • Non owner insurance sold through a car rental company is often expensive. It may cost you approx. $14 per day. If you purchase through a rental agency it will be called rental agency insurance.
  • Under non owner insurance, ideally you don’t have to pay any deductible if filing a claim. Exception being under-insured/uninsured property damage coverage is mandatory in your home state.
  • You need to certain mandatory documents to be able to get non owner car insurance like:Driving License
    Some car insurance companies have a specific requirement of no one in your household should own a vehicle and you don’t have access to a vehicle. Hence, these policies are at times difficult to obtain.
  • A non owner car insurance policy can be used as a satisfying mandatory requirement in case you are required to file an

    to reinstate your driving license as a high risk driver. If you don’t own a car and need a SR-22 filing to get your license out of suspension then this is the ideal scenario to buy a non owner car insurance policy.

  • Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) needs to be purchased additionally to be able to pay for damage done to the rented car you drive. If you already own a standard car insurance policy with

    then in most cases you will not need this type of coverage

  • It is very important for you to know that a non owner car insurance policy is like a precautionary measure and it kicks in ONLY WHEN the owner’s car insurance policy limits are exhausted due to policy limits. So your policy will only pay for the additions expenses over and above the damages covered by standard car insurance policy of the vehicle owner.


How Much Does Non Owner Car Insurance Costs?

A lot of factors would affect the cost of your non owner’s auto insurance policy like:

  1. The place where you reside
  2. Your past driving record
  3. Respective insurer’s underwriting guidelines

Typically as mentioned above it would cost you around $300 to $500 annually.

Car Rental Insurance Guidelines

Non Owner Car Insurance Policy Is A Better Option When Compared To Car Rental Insurance.

If you are considering car rental insurance then following guidelines would help you:

  • Check your current auto insurance policy and take help of an insurance agent before buying car rental insurance.
  • If your current car insurance policy does not provide any provision for rented car then first option is to enquire if you can add any rider’s on the existing policy.
  • Purchasing liability insurance coverage along with collision damage waiver at the car rental agency might be a good option if your existing policy does not have sufficient liability coverage and your credit card does not have any benefit’s.
  • Non owner policy is always a better option over car rental insurance.

Where To Buy Non Owner Car Insurance

Some of the best options are listed below:

GEICO | Progressive

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