What You Need to Know About Non Owner Liability Coverage

Non owner liability coverage is a type of insurance that protects you financially if you're involved in an accident while driving someone else's vehicle.

This coverage is usually included in a personal umbrella policy or can be purchased as a standalone policy. It's often required by lenders if you have a car loan or lease.

You can purchase non owner liability coverage even if you don't own a car, making it a great option for people who borrow cars frequently.

Non owner liability coverage typically has a higher deductible than other types of insurance.

Intriguing read: Does Car Insurance Cover Key Fob Replacement

Non-owner liability coverage is a type of insurance that provides financial protection for individuals who drive vehicles they don't own. This coverage is essential for people who frequently rent cars or are required to show proof of car insurance.

Non-owner liability coverage is designed to pay for damages and injuries to others if you cause an accident while driving a borrowed vehicle. This can include medical expenses, car repair bills, and even legal defense costs if you're sued.

Take a look at this: How Much Is Liability Coverage for a Car

The primary focus of non-owner liability coverage is liability insurance, which pays for damages and injuries to others. This coverage is usually a "named insured" policy, meaning only the person listed on the policy is covered. Some insurance companies may extend coverage to a spouse, but this varies by company and state.

Non-owner liability coverage does not cover the vehicle you're driving if you damage it in an accident. Comprehensive and collision coverages are not offered, so you'll need to rely on the vehicle's owner for coverage in this case.

The coverage provided by non-owner liability insurance is similar to liability coverage on a standard auto policy. It protects the driver and not a specific vehicle, making it a crucial aspect of car insurance for individuals who drive borrowed vehicles.

Here's a breakdown of what non-owner liability coverage typically covers:

Since insurance typically follows the vehicle and not the driver, any coverage provided by a non-owner liability policy is secondary to the vehicle's owner policy.

For more insights, see: An Umbrella Policy Is Designed to Cover:

Do I Need Non-Owner Liability Coverage?

You may need non-owner liability coverage if you often borrow cars or use a car-sharing service, as it provides liability coverage beyond what the company provides. This can be especially important if you frequently rent cars, as liability coverage is required and purchasing it from the rental company every time can be expensive.

You rarely drive, so a non-owner policy might not be worth the cost. If you borrow a household member's car, they should add you to their insurance policy instead, as many insurers require policyholders to list all licensed drivers in the household.

Here are some specific situations where non-owner liability coverage might be necessary:

Non-owner liability coverage can be a cost-effective option for those who don't own a car but still need to drive. The average cost of non-owner car insurance is $748 a year, according to analysis of annual rates from top auto insurance companies.

Related reading: Average Cost of Professional Liability Insurance

The cost of a non-owner car insurance policy will depend on several factors, including your state and car insurance company. Here are some other common pricing factors:

Auto-Owners is the cheapest for non-owner car insurance at $202 per year, while Nationwide is the most expensive at $1,361. Here are some examples of average costs per year for non-owner car insurance:

Consumers can expect to pay 5%-15% less for non-owner insurance with similar coverage. A non-owner car policy can range between $200-$1,200 annually depending on the state and coverage selected.

To get non-owner liability coverage, you'll need to call the insurance companies that offer it. Most companies won't provide quotes online, so be prepared to make some phone calls.

You can start by calling the top carriers listed below, which offer non-owner car insurance and their phone numbers are as follows:

Other companies that offer non-owner insurance include American Family, Dairyland, Farmers, Auto-Owners, Acceptance Insurance, and Elephant Insurance. Be prepared to provide information to ensure an accurate quote.

If you don't own a car, you might wonder if non-owner liability coverage is right for you. You should consider it if you rent cars often, as it can be more cost-effective than buying liability insurance from a rental car agency each time.

Non-owner insurance can also provide more coverage than car-sharing services like Zipcar or Getaround, which often only provide the minimum liability insurance requirements.

You might want to think about getting non-owner insurance if you frequently borrow other people's cars, as the owner's insurance might not cover all the costs in case of an accident.

If you're worried about being on the hook for expenses exceeding the owner's liability limits, a non-owner policy can step in and cover the remainder.

Here are some scenarios where non-owner liability coverage might be a good idea:

In these situations, non-owner liability coverage can provide peace of mind and financial protection.

If you're in between vehicles, obtaining non-owner insurance can save you from a rate increase when you get a new policy. This type of insurance can provide temporary coverage until you find a new vehicle.

Many states require proof of insurance to reinstate your driver's license, and a non-owners policy can satisfy these requirements. This is especially true if you need an SR-22.

If you drive a car regularly but don't own it, you should first ask the owner about getting added to their policy as a driver. If that's not possible, you can consider buying a non-owner car insurance policy.

If this caught your attention, see: Do I Need Comprehensive Insurance on an Old Car

If you're in between vehicles, you might think you're off the hook for car insurance. Think again! Most auto insurance companies base your insurance price on whether you have had any prior lapses in coverage.

Even a small gap in insurance can cause a rate increase when you do eventually get a new policy. To avoid this increase, obtain non-owner insurance in the interim.

Non-owner insurance can provide liability coverage, which pays for property damage and injuries to others if you cause a car crash. It's a great way to stay covered and avoid those pesky rate hikes.

By having non-owner insurance, you can drive with confidence, knowing you're protected in case of an accident. It's a smart move that can save you money in the long run.

Having vehicle coverage as part of your property insurance can simplify your business's insurance needs, eliminating the need for a separate commercial auto policy.

Adding hired and non-owned automobile liability coverage to your policy can save you money and hassle, as it provides more coverage with fewer policies.

Business owners often overlook the benefits of bundling vehicle coverage with their property insurance, but it's a smart move that can pay off in the long run.

In fact, it's more cost-effective to take this approach, making it a true win-win for your business.

Discover more: Business Owner Financial Planning

You can purchase non-owner liability coverage from an insurance company that offers this type of policy. Not all companies offer non-owner policies, so you'll need to research which ones do.

To get a non-owner insurance policy, you'll need to gather the necessary information, such as your driver's license number and any accident or violation history. You may also need to provide the dates and specifics of any accidents or violations you've had.

Researching companies is the next step, where you'll want to confirm the financial stability and overall rating of the company to ensure you're choosing the best one for your circumstances.

To begin your research, gather all the necessary information a carrier may need, such as your driver's license number.

This includes any accidents or violations you may have had, so be prepared to provide the dates and specifics of these incidents.

Having this information upfront will save you time and effort in the long run.

The limits of coverage you want quoted are also essential to have, so make sure you know what you're looking for in a policy.

Researching insurance companies is a crucial step in finding the right policy for your needs. Not all insurance companies offer non-owner policies, so you'll need to find one that does.

You'll want to confirm the financial stability of the company to ensure you're choosing a reliable option. A company's overall rating can give you an idea of its reputation and trustworthiness.

Some insurance companies may offer more comprehensive coverage than others, so it's essential to shop around and compare policies. Don't be afraid to ask questions or request quotes from multiple companies to find the best fit for you.