- A non-owner's insurance policy is simply auto insurance for a driver who doesn't own a car. This may be a person who frequently borrows or rents a vehicle. Since the policy covers the driver, it applies to any car he may be operating. Any insurance carrier that provides auto insurance should be able to write a non-owner's policy. Such factors as a driver's age, gender, address and driving history will affect the price of the policy premiums.
- Non-owner's insurance is usually limited in scope, often covering only the vehicle itself. Other vehicles involved in a collision and personal injury to any party may not be covered, or only very minimally. In some cases these protections can be included or augmented at additional cost. In almost no cases would non-owner's insurance cover accidents that might occur while a family member or household resident was driving a car, since the essential feature of non-owner's insurance is that it covers damage to a non-commercial vehicle operated by a particular driver only.
- The high cost of owning and maintain an automobile prevents many people from buying a car. Others simply don't need one regularly enough to go through the expense. Even if renting, an individual who uses a car once a month or more can probably save money by getting a non-owner's policy instead of purchasing insurance each time she rents. And of course, insurance is usually cheaper in the long run than being cited for driving without insurance or getting in an accident.
- In some cases, people who don't own a car are required by law to file proof of insurance with the state. This happens if an individual has been caught driving without insurance in the past, or has received several DUI citations. To protect the public, the state requires these individuals to file an SR-22 insurance form. If the individual doesn't own a car, the least expensive way for him to meet these obligations is through non-owner's insurance.
- It's rare that someone who is borrowing a car asks about the owner's insurance coverage in detail. But if an accident occurs, the conversation will become very specific. In most states, especially no-fault states, the owner's insurance will cover the initial damages to the vehicle. If the costs exceed the owner's insurance, however, the driver at the time can be liable, and the sums can be huge if someone is seriously injured, disfigured or killed. Having a non-owner's policy protects against these situations, and keeps a borrower from having to ask about insurance details up front.
