If you own a car in the US, chances are, you may already have your auto insurance. Unless you live in New Hampshire where having auto insurance isn’t required, but it’s still strongly recommended.
What about non owners? Is auto insurance still necessary? What’s the point of having auto insurance if you don’t have a car?
You may think it’s no longer necessary, but having an SR-22 insurance policy despite not having a vehicle is a requirement for drivers to keep their licenses active. Non owners are also required to secure an SR-22 if they were involved in an accident or have a violation. In these situations, you may apply for a Non Owners SR-22 Insurance.
What is a Non Owners SR-22 Insurance?
An SR-22 alone isn’t auto insurance but serves as verification that the person’s financial responsibility meets the state’s required amount of car insurance. It’s not a document you can obtain on your own, as it has to go through your car insurance company. The insurance company then lets the state know whether you’re financially capable if any accidents that may happen.
Non owners SR-22 insurance gives you liability coverage when you’re driving a vehicle you don’t own. It gives you an extra layer of protection when you’re driving a borrowed car. While the vehicle may have its insurance policy, having a non owners policy can help you cover expenses that exceed the insurance policy’s coverage.
How Does It Work?
Like any auto insurance policy, you need to research various insurance company options, get in touch with an agent, get a quote, sign up for the policy, and pay your premiums to get the coverage. The non-owner policy acts as secondary coverage if the damages in the accident you caused exceed the car owner’s policy’s limit.
For example, you borrowed your friend’s car to attend an event. On the way, you met with an accident. Though you’re confident that your friend has auto insurance, your non-owner policy may help you cover the excess costs.
Let’s say the total cost of damage is USD$30,000. If your friend’s policy limit is USD$20,000, your non-owner’s policy can cover the remaining USD$10,000, provided that your liability limit is higher than the car owner’s limit. Instead of worrying about using your other assets to pay for the damages, non owners insurance can save you.
Who Needs A Non owners SR-22 Insurance?
Despite the apparent reason that you don’t own a car, you may need the non owners SR-22 insurance if:
- You frequently borrow someone else’s car.
Non owners insurance is advisable if you frequently borrow someone else’s car, excluding people from the same household. If someone lives in the same household as you own a car, they should add you as a driver to their auto insurance policy.
- You often rent cars.
Having a non owners policy when you often rent cars doesn’t only give you the extra coverage; it’s also cheaper in the long run than buying rental car insurance each time you rent one.
- You use a car-sharing service.
While some companies have liability and damage coverage and their services, the extra coverage may still prove beneficial.
- You plan to get a car soon, but temporarily you don’t have one.
Getting a non owners policy while you don’t have a car prevents you from the lapse of your coverage. In the long run, it’s a cheaper option. A lapse in your insurance coverage could lead to paying for a higher insurance policy once you get a car.
- You need to reinstate your driver’s license.
If you committed serious traffic violations or caused an accident, you may need a non owners SR-22 insurance to maintain your driver’s license.
Conclusion
Typically, non-owner SR-22 insurance provides you coverage for bodily injuries and property damage. However, it doesn’t cover the cost of damages to the vehicles you drive, vehicles you own, or vehicles of people from the same household. Your passengers are also not included since the policy only applies to you.
Depending on the auto insurance company and your location, the coverage differs. It’s best to do your research and compare multiple rates to get the best deals. Do keep in mind that not all car insurance companies are willing to file SR-22 insurance. They may require you to have an existing policy with them before you can submit your SR-22.
While you may think that auto insurance, when you don’t have a car, maybe unnecessary, it may prove to be a wise choice if you have to drive regularly. Aside from the coverage, it also helps you save up what you would typically spend on rental car insurance or a lapsed insurance policy. If you plan to be back on the road in a vehicle you don’t own, and you may want to consider calling up your car insurance company and getting non-owner SR-22 insurance.