If you’re like many people, you assume that insurance essentially breaks down to “you cover things that you own in case they get damaged.” This is true, for the most part. However, this simple explanation doesn’t include the concept of non-owner insurance. Pronto Insurance offers this type of cheap auto insurance policy, and it’s worth taking a look at.
What is SR-22 Non-Owner Insurance?
Before we go any further, let’s look at this type of policy. Non-owner car insurance is a liability-only coverage for drivers who do not own a car but still need car insurance. This type of policy is inexpensive and much cheaper than a more traditional one.
You can get the coverage you need for a low monthly cost because it only covers damage you cause to other drivers (bodily injury) and their property. It offers no collision or comprehensive coverage for the vehicle you are driving or bodily injury coverage for yourself or any passengers who happen to be in the car at the time.
Who Needs This Insurance?
Are you a legal driver who thinks this may be the right coverage for you? To break it down in a simple way, this type of car insurance is ideal in the following circumstances:
- You need an SR-22 but don’t own a car
- You’re an occasional driver that doesn’t own a vehicle
- You’re in between vehicles at the moment but don’t want to go uninsured
- You rent vehicles frequently
- You use car services often, but don’t own a vehicle
- You don’t own a vehicle but want to avoid a lapse in car insurance coverage
Many readers will stop at reason number one and say, “Wait-what? Is that something I should have?” Basically, an SR-22 is a certificate that states you are carrying at least the state’s minimum liability insurance. You’ll typically only need an SR-22 if your driver’s license has been suspended or you’ve been cited after an accident or violation.
So, SR-22 Is a Type of Insurance?
To be perfectly clear, the SR-22 itself is not insurance. It’s simply a piece of paper stating you have liability coverage. If you don’t own a vehicle yet and need to show proof of insurance, you will need this type of non-owner policy being discussed.
A non-owner insurance policy will help fill the gap between needing to show proof of liability protection without having to purchase and insure a car. You don’t want there to be any gaps in your coverage, even if there is a gap in your ability to drive.
In order to be perfectly clear, the SR-22 itself is not insurance. It’s simply a piece of paper stating you have liability coverage. If you don’t own a vehicle yet need to show proof of insurance, you will need this type of non-owner policy being discussed. A non-owner insurance policy will help fill the gap between needing to show proof of liability protection without having to purchase and insure a car. You don’t want there to be any gaps in your coverage, even if there is a gap in your ability to drive.
Do All Insurance Companies Provide SR-22s?
Keep in mind that you might be in a situation where your current auto insurance company doesn’t offer an SR-22. Not every company provides SR-22s simply because of the inherent risk involved with the type of driver who needs one.
If you need an SR-22 and your current company will not provide it, you may want to consider a non-owners policy. Doing it this way does require paying for a second policy. Still, it is important to remember that the premiums on non-owner policies are significantly cheaper than those for traditional auto insurance policies.
Because of this, carrying a non-owner policy as a second policy is likely more affordable than switching all of your coverage to a different carrier. This would also keep you compliant with state regulations, avoiding fees and insurance suspensions. You’ll want to spend time looking into and discussing this with your current auto insurance carrier.
Where To Find Non-Owners Insurance
Although it is much cheaper than a traditional car insurance policy, it’s not all good news. These non-owner policies can be more difficult to find. To find coverage, you will typically have to look at a non-standard or smaller insurance company.
Don’t worry- the answer is Pronto Insurance! We offer the type of policy you’re looking for, and you can learn more and even get a quote online. It could not be any easier.
If I Drive Occasionally and Don’t Own a Car, Do I Need Non-Owner Insurance?
This policy is great for drivers who often rent, borrow friends’ vehicles, use car services to get groceries, etc. The most common is a person with a valid driver’s license who doesn’t own their car but sometimes borrows from a friend, partner, or family member.
Depending on the owner’s car insurance policy, they might have a permissive use policy. Permissive use extends coverage to drivers who infrequently drive the insured’s vehicle and do not live in the insured’s home. A typical policy says that a permissive user can drive the car less than 12 times a year.
A non-owners policy can be a good idea if their liability policy isn’t sufficient in an at-fault accident. For example, let’s say you accidentally caused over $5,000 in property damage by driving through a fence and exceeding your friend’s liability limits. In most cases, you would be liable for the remaining damage, which could be thousands of dollars. With a non-owners policy, you would have supplementary coverage.
Do I Need This Coverage if I Rent a Vehicle Often?
Some drivers in big cities don’t own cars but travel and rent a vehicle at their destination. If you rent often enough, a non-owners policy may be cheaper than paying for the liability coverage offered by a rental company.
When considering this option, keep in mind that non-owner coverage provides no coverage for the physical protection of your rental car. You’d still pay for that damage out of pocket.
What About if I Own a Vehicle but Don’t Want to Drive It Very Often?
You still need to maintain insurance coverage, whether you drive every day, once a month, or once a year. Gaps in your car insurance history can be a red flag once you want to drive more often and begin shopping for car insurance.
Regardless of your reason for not having insurance, insurance companies see you as more likely to drive uninsured. The data insurance companies look at shows that drivers without a complete insurance history are more likely to get cited or file a claim. This means a higher premium for you or being denied coverage altogether.
Suppose you’ve sold your vehicle and don’t plan on regularly driving for some time or have one of the other situations listed above. In that case, a non-owners policy can help keep your future premiums low by keeping you in the good graces of potential insurers. Have you decided that you think a non-owners policy is right for you? Great! Let’s keep going!
What Non-Owners Insurance Cover
This policy works like a traditional car insurance policy with one major exception: You’re limited to liability coverage only with a non-owners car insurance policy. This means that you won’t have comprehensive or collision coverage, often referred to as full coverage.
Why is this? Well, your insurance company prices your full coverage based on the vehicle they agree to replace in a worst-case scenario. The insurance company through which you receive non-owners insurance doesn’t know the specifics of the car you’ll be driving and therefore has no way to price your premium. The value of the vehicle they would need to replace through collision and comprehensive could vary, from a cheap, used compact car to a brand new Mercedes Benz sedan.
Coverage for Other Drivers and Vehicles
Liability insurance covers the damage you cause to someone else in an at-fault car accident. It doesn’t cover physical damage to your vehicle, but it does give you coverage for another driver’s property damage.
Like a traditional liability policy, non-owners liability will break down like this:
| Limit | Coverage Description |
| 50 | $50,000 in bodily injury liability coverage per person |
| 100 | $100,000 in bodily injury coverage per incident |
| 50 | $50,000 in property damage liability per incident |
Coverage for You
Thankfully, there is a little something for you in this. Some people are less responsible than you and choose to drive without insurance. If you’re struck by a driver who does not have auto insurance, this coverage will cover you.
The exact coverage details will depend on the individual policy, but this typically covers any bodily injury costs suffered by you or your passenger(s), as well as property damage to your vehicle.
How Is the Pricing Determined for Non-Owner Car Insurance?
Insurance rates for non-owner policies vary from one company to another. As with a traditional policy, high-risk drivers, like those with a DUI on their driving record, will be quoted higher rates than those deemed safe drivers.
Along with your driving history, several other factors inform what you pay. These include your age, where you live, and how often you plan to drive. Regardless of these factors, nearly all non-owner policies cost much less than you’d pay for traditional car insurance coverage.
If you’re ready to find out exactly what your non-owner car insurance will cost through Pronto Insurance, now is the time to get a quote. Don’t let your coverage lapse, even if you don’t own a vehicle right now!
