The basics of car insurance seem very simple at first glance. You have a car, you want to drive it, so you get a driver’s license and of course, a car insurance policy. The type of car insurance policy is also easy to understand; Get liability insurance with the minimum coverage limit and you’re good to go. However, there are cases where things get complicated. For example, what if you want to drive, but you don’t have a car. Or when your license is suspended?
Insurance companies won’t give you a car insurance policy if you don’t have a car registered in your name or if your license has been suspended. And walking 20 miles every day to get to work or for other emergencies isn’t the best idea, and neither is driving without auto insurance. This is where auto insurance policies for non-owners come in and it can save you a lot of hassle, as well as legal issues.
The great thing about the names of some car insurance policies is that they are self-explanatory. A non-owner car insurance policy is an insurance policy for someone who does not own a car. But why can’t people who don’t have a car buy car insurance?
Insurance companies are risk management companies. These companies charge a fee to take your share of the risk so that in the event of an accident caused by you, you don’t have to pay out of pocket. This applies when you have a car registered in your name. When you don’t have a car (which you own), then there is an insurable interest problem.
Insurable interest means that the car (which you do not own) is not in your financial interest. Since you haven’t invested your money in the car, you have no interest in it. Why would you want to drive the car carefully? The risk of an accident or damage to the car is higher when it is not your insurable interest.
This is where non-homeowner auto insurance policies come in. This insurance policy allows you to get auto insurance even if you don’t own a car or rent a car for a trip. Non-owner auto insurance is your best bet if you plan to drive someone else’s car or rent a car often.
Non-owner auto insurance coverage is just like liability coverage. It has three different coverages, one for per person bodily injury liability, one for accidental bodily injury liability and one for property damage liability. The coverage limit depends on the policy you choose and the price of the policy.
Note that non-owner car insurance policies can be a bit expensive as they take on more risk than normal insurance policies. That’s why you should compare as many insurance companies as possible and look at their prices. Get the cheapest non-homeowners insurance policy, has the lowest premium rate, and offers the best coverage.
Non-owner’s insurance only covers liability and it can be claimed by the other person, not the policyholder. For example, if you cause an accident and the other person sustains injuries and damage to their car or property, your liability insurance will pay for medical treatment and repairs to the vehicle.
The non-owner’s policy does not cover the collision or comprehensive insurance policy. This means that any damage to the car you are driving will not be covered by this policy whether it is parked or in motion. You will have to pay for the repairs out of your own pocket. Since it also does not include comprehensive coverage, if there is damage to your car due to hailstorms, fires, earthquakes and other natural calamities or theft, well , no chance.
Most of the time, if you own a car and want to drive, general insurance is sufficient. If you want to drive your friend’s car or maybe a car that belongs to someone in your family, you can ask them to add you as a driver to their insurance policy and that would be fine. But there are specific cases where you need to purchase a non-owner auto insurance policy.
If, for certain offenses, your driver’s license has been suspended but you need to drive a car in an emergency and to get to your office, you can apply for a non-owner car insurance policy (because companies will not give you a general policy), with an SR-22 or FR-22 form that proves that you have an automobile insurance policy. Remember that SR-22 is just a legal form that shows you have an insurance policy. It is usually provided by the insurance company once you have purchased a non-homeowner’s insurance policy.
You are a Serial Car-Renter
Some people spend their lives avoiding the road, while others spend most of it there. If you belong to the latter and rent a lot of cars, a non-owner’s insurance policy is the one you should have. It helps keep your costs down, gives you the coverage you need to drive safely, and doesn’t require you to present a registered car in your name. Just note that some car rental companies will charge you extra for full coverage and collision coverage.
The cost of a non-owner’s insurance policy depends on several factors, just like general auto insurance policies. Important factors such as your driving record, previous insurance claims, amount of coverage, age, gender, etc. are taken into account to determine the cost of insurance.
If your license has been revoked, you will have to pay a higher amount for the policy since insurance companies consider you to be a high risk person. A ballpark figure for the average cost of a non-homeowner’s insurance policy would be around $250 to $650 per year. You may get a higher quote than this estimate, but for most people it will be a range.