Can You Get Sr22 Insurance Without a Car
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If you don't have a car, you may not be thinking about needing car insurance. However, non-owner insurance is a liability coverage option for drivers who don't currently own vehicles according to NerdWallet, Progressive Commercial, and insurance.com. Wondering how to get insurance without a car as well as why you might need it?
When you have a non-owner insurance policy, you can extend the liability coverage that exists on your commercial policy to the vehicles given to employees for occasional use. As long as the vehicle is not contracted with, registered to, or owned by the business or its behalf, the coverage can apply.
Drivers Insurance for Those Who Do Not Own Vehicles
The Simple Dollar reports that a car insurance policy for a non-owner, also referred to as non-driver's insurance, usually grants a minimum level of coverage. This type of policy might include property damage liability and bodily injury coverage on a vehicle that you don't own but would be covered under a traditional auto insurance policy. For example, if you have employees who use their personal vehicles for business purposes, you may want to take out a non-driver's insurance policy that covers those vehicles that you do not own.
Purpose of Non-Owner Car Insurance
The main purpose of a non-owner insurance policy is to provide property damage liability and bodily injury coverage on a vehicle. Some insurance companies also provide uninsured/underinsured motorist bodily injury and medical payments under the non-driver auto insurance policies offered. If a person doesn't own a vehicle, they might choose to take out a non-owner insurance policy if they have to maintain liability insurance coverage to keep their license or they rent cars often.
Other situations when drivers might choose to have non-owner car insurance policies include:
- If you borrow other people's cars often, such as if you use your employer's vehicle or you provide care to someone and transport them in a vehicle.
- You rent cars often, whether for personal or business reasons, and don't have rental car insurance through your credit card or purchase it from the rental company.
- You don't have a car on a temporary basis, such as if you have sold your car but plan to buy another one in the near future, and don't want to have a lapse in coverage that could cause your rates to go up.
- You utilize a car-sharing service, such as Zipcar, Car2Go, or Maven.
- You are court-ordered to maintain liability insurance in order to keep your driver's license due to serious traffic violations, DUI convictions, reckless driving citations, accidents that happen when you don't have insurance, or other vehicle-related legal issues.
If you still aren't sure if a non-owner's auto insurance policy is a good fit, review some of the situations where it is not necessary:
- The vehicle you drive is covered by a sufficient insurance policy, whether it is owned by a friend, a family member, or a car-sharing company.
- You own the vehicle you drive, as in this situation you would need a more extensive automotive insurance policy that includes comprehensive coverage.
- You don't rent cars often, since in this case the coverage available from the rental car company or provided by your credit card company is likely cheaper than paying monthly for a non-owner's insurance policy.
Obtaining an Auto Insurance Quote
Most auto insurance companies don't offer quotes for non-owner insurance policies online, so you will likely have to contact the company directly to get a quote. Before you call, make sure to have the information they will ask for available, including your driving history — any accidents, prior tickets, and license suspensions — as well as your driver's license state of issue and number. If you choose to move forward with the policy, you may need to provide a credit or debit card number on the phone to pay for the coverage. Most non-owner car insurance policies do not have deductibles.
If you are involved in an accident in a car that belongs to someone else, the car insurance policy on that vehicle would pay for the damages first. However, if that policy wasn't enough to cover all the damages incurred, your non-owner car insurance policy would serve as the secondary coverage, kicking in to cover the remaining damages. In order for a non-owner's policy to start paying, the liability limit must be higher than the liability limit on the owner's automotive insurance policy. For example, if the car's standard policy had a limit of $10,000 for property damage and the accident you caused resulted in $20,000 in damages, your non-owner insurance policy would kick in to cover the other $10,000 as long as the liability limit on the policy is $20,000 or higher.
Non-owner car insurance doesn't include collision coverage, so it only covers damages to other property and vehicles, not the vehicle you are driving.
Cost of Non-Owner's Insurance
Since the coverage is more minimal, the cost of a non-owner's policy is significantly lower than a traditional car insurance policy. Another reason for the cost difference is the fact that most people who take out this type of policy drive much less than a driver who owns a vehicle, so the chance of being in an accident is lower. The cost of a non-owner's insurance policy varies drastically between each state, although the national average cost is $474 per year.
Insure.com reports that the three states where non-owner's auto insurance policies are most expensive are:
- New Jersey: $1,090 per year.
- Michigan: $1,073 per year.
- Rhode Island: $972 per year.
On the other hand, the three states where this policy costs the least are:
- Wisconsin: $171 per year.
- South Dakota: $235 per year.
- Iowa: $246 per year.
The price of a non-owner's policy will also vary based on the community where you live. In California, the state average is $286, while the average in the state of Florida is $902. In order to get a quote for a non-driver insurance policy, you cannot own a car and you must have a current driver's license. If someone who lives in your home owns a vehicle and you drive it, you should be added as a driver on that policy right away to prevent legal or financial risks.
This information can help you determine whether you should consider taking out a non-owner's auto insurance policy as an extra form of protection.
Resources:
https://www.insurance.com/auto-insurance/faq/insurance-for-non-car-owner.aspx
https://www.nerdwallet.com/blog/insurance/nonowner-car-insurance/
https://www.thesimpledollar.com/insurance/auto/best-non-owner-car-insurance/
https://www.insure.com/car-insurance/non-owners-policy.html
https://www.progressivecommercial.com/coverages/non-owned-car/
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Can You Get Sr22 Insurance Without a Car
Source: https://www.caranddriver.com/car-insurance/a31268565/how-to-get-car-insurance-without-a-car/