Non-owners auto insurance policy protects drivers who don’t personally own a vehicle, but still drive on a regular basis. Examples are people who have work vehicles, live in large cities and generally use public transportation and people who use the cars of family and friends. Insurance follows the car being driven, however, you might not know how much liability the other person has on the vehicle being driven, and it is important to protect yourself from lawsuits arising from an accident. If you drive another person’s vehicle and they don’t have insurance or their insurance has lapsed then you are open to a ticket, license suspension and lawsuits if you get in an accident.
Non-owners auto insurance generally only contains liability, medical or personal injury protection, uninsured and under insured coverage. Comprehensive, collision and rental coverage are meant for an owned vehicle and are not a part of non owners insurance.
The cost of non-owners insurance is typically very low. It is generally similar to the price for liability only coverage on an owned vehicle insurance. However, some companies charge more for high liability vehicles, which is not a factor with non-owners insurance. Some companies don’t allow for the same discounts, like multi-policy discounts, for non owners insurance.
An SR-22 filing is a mandatory insurance filing with the state. It is required for drivers who get tickets for driving while intoxicated or who get in accidents without insurance. It is meant to show financial responsibility in case you do get in an accident and is generally a mandatory step to get your license reinstated. Non owners insurance is helpful for drivers who must have an SR-22 but don’t own a vehicle. You can purchase a non owners auto insurance policy and attach a SR-22 filing to it.
Insurance follows the vehicle. The vehicle’s insurance pays out damages for liability first, and non-owners insurance pays as secondary coverage. It is a good idea to have non owners insurance to protect yourself because you never know how much insurance is on a vehicle or if the insurance has been canceled or lapsed.