Can you have car insurance without a car

You’re at a friend’s house for dinner and they’ve just run out of tomatoes and it’s a key ingredient for their recipe. You didn’t drive your car there, so you grab their car keys to pop out to the supermarket. A few blocks away, you just manage to swerve out of the way when someone drives out a side street without stopping or even looking in your direction. Luckily, everyone’s safe - but it sure gets you thinking. Do you need extra insurance to drive someone else’s car? And if you did get into an accident, whose insurance pays for it? Did you know there is a type of coverage called non-owner car insurance? But it’s not a mandatory coverage and it’s only useful for certain people.

Before we jump in, it’s important to remember that it’s illegal to drive without insurance whether the car you’re driving is yours, or it’s borrowed. In Canada, it’s the law that you must drive with a valid insurance policy to protect you, as well as everyone around you. Now let’s get into the details of what non-owned auto insurance is and look at different scenarios when you may need it.

What is non-owner car insurance?

Non-owner car insurance is just what it sounds like. It’s a type of car insurance coverage that people can purchase when they drive a car, but they don’t own one. It will protect you from the financial burden of having to pay out of pocket for injuries or property damage resulting from an at-fault crash. With a standard car insurance policy, the borrowed vehicle is usually covered as an extension of your policy. Where in the case of non-owner car insurance, it’s actually the person that is covered. Non-owner car insurance differs from province to province, so make sure to check out what the rules are where you live.

When do you need non-owner car insurance?

Here are some examples of when a non-owner policy would be needed:

• Borrowing – you borrow someone else’s car(s) frequently (worth noting, if you are frequently borrowing the same car or it’s owned by someone you live with, you should be listed on their policy)
• Rentals – you rent cars frequently. This is an alternate option to using the insurance policy available for purchase from the rental company
• Car share services – if you use a car share service frequently, you can combine the built-in coverage offered with non-owner car insurance

When don’t you need non-owner car insurance?

• The scenario at the beginning of the article is the perfect example of when you don’t need non-owner car insurance. You own a car and already have insurance. Your own car insurance will generally provide limited coverage when you borrow someone else's car or drive a rental. Grand Touring Solution® is another option you can look into if you’re renting.
• You drive a company car, but only for business reasons. Because the vehicle belongs to the company, it should be covered through your employer's commercial auto insurance.
• The car you borrow is insured and belongs to someone you live with. As long as you are listed on their policy, their insurance will cover you. But before you get behind the wheel, make sure they've added you to their policy.

How does it work if you have car insurance and someone else is using your car?

As long as it’s not a regular occurrence, it’s okay for someone to drive your car without non-owner car insurance. In the event of an accident and the driver of your car is deemed at fault, your insurance company will cover it.

TD Insurance offers extensive coverage options for all the above scenarios when non-owner car insurance isn’t necessary. You can get a quote online in just minutes or speak to an advisor to answer any questions you have.

So, next time someone runs out of tomatoes and the recipe calls for them – you can feel comfortable knowing you’re covered while also saving the day and finding the missing ingredient.

Insurance fees may differ depending on the vehicle’s condition and the scheme it is in. Update your insurance company if you have changed your vehicle scheme, changed its purpose, or if you modified it. 

TLTR: This article tells you how you can get car insurance without a car, and explains why it makes sense to do so in some circumstances. Also, learn which carriers will provide your best options.

“Can I Get Car Insurance Without a Car?”

This is one of the most common insurance questions that people ask. The answer is a very definite “yes.”

In fact, getting insurance without owning a car can be essential at times. Why? For one thing, you might get into an accident while driving a car that you don’t own.

Non-owner car insurance provides coverage in such situations. It’s a form of liability coverage specifically for drivers who don’t currently own vehicles.

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In this blog

• What Does It Cover?
• How Do I Get Non-Owner Car Insurance?
• How Much Does Car Insurance Without a Car Cost?
• Where Can You Get Car Insurance Without a Car?
• How To Get Car Insurance Without a Car
• Looking For Car Insurance Without a Car? Here’s How to Find an Agent for It!
• In Conclusion
• FAQ

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What Does It Cover?

In addition to liability coverage, the form of vehicle insurance that is usually mandatory in most states, the policy also provides personal injury protection and uninsured/underinsured motorist coverage. Non-owner insurance also covers drivers who rent cars on a short-term basis, such as for a business trip or a vacation.

Car rental companies will have you purchase their own liability coverage if you do not have your own car insurance policy. If something happens while you’re traveling to another state, for example if you collide with another driver, having an out-of-state non-owner auto insurance policy could keep you from paying an accident bill out of your own pocket.

It’s important to note that, in some areas, it’s possible to get non-driver coverage for vehicles that aren’t currently active. You would get the policy if you intend to use your vehicle in the future, perhaps after it’s been repaired following an accident. Some auto owners buy this kind of “future use” temporary non-ownership liability policy so they will be covered if they ever need to borrow their own or someone else’s car in the future.

Here are some things that non-owner auto insurance does not cover:

• Personal belongings
• Driving any of your vehicles yourself without adding them to your policy first
• Car accidents you’re personally involved in when you don’t have an active vehicle registered

Note: For coverage in case you get in an accident through no fault of your own with a vehicle registered under your name, you should look into getting personal injury protection (PIP).

Keep in mind that there are several different kinds of non-owner insurance plans designed for drivers with these types of needs. The plans can differ according to which insurer you approach. Look into what kind is right for you before making a purchase decision.

How Do I Get Non-Owner Car Insurance?

You might think that getting non-owner car insurance  is as simple as going down to your local insurance office and getting a quote on a premium. But insurance companies tend to have certain requirements when it comes to issuing customers car insurance without a car. These are:

• A valid driver’s license
• Proof in the form of a legal document that you don’t own a vehicle
• Legal Proof that no one in your household owns a vehicle

Note: Insureds can establish this proof by claiming a declaration of non-ownership from the Department of Motor Vehicles (DMV).

At a minimum, car owners need to at least have liability coverage on their policy, but buying additional coverage for theft protection, medical bills, or comprehensive repairs may be more important to some than others.

So when you’re not a car owner you have to think about which type of coverage you would need when you’re driving a car you don’t own.

How Much Does Car Insurance Without a Car Cost?

As per Bankrate, the average cost for full coverage car insurance is $1,771 per year. Compared to this, the cost of non-owner auto insurance is far less. WalletHub, puts the national average cost at a relatively affordable $200 to $500 per year.

But please note that the cost depends on the insurer you approach as well as factors such as your:

• Age
• Location
• Coverage amount
• Driving history

Furthermore, the cost difference between each state is quite significant. According to Insure.com, the three most expensive states for getting car insurance without a car are New Jersey ($1,090), Michigan ($1,073), and Rhode Island ($972). The cheapest three states are Wisconsin ($171), South Dakota ($235), and Iowa ($246).

Note: The costs for non-owner insurance can differ even within each state’s cities and communities. Make sure to check with your local insurance agent for details.

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Where Can You Get Car Insurance Without a Car?

Even if getting car insurance without owning a car is cheap, it isn’t always easy. Some insurers don’t provide this coverage. But, the well-known ones such as Geico, Progressive, and State Farm do provide non-owner insurance. Let’s look at Value Penguin’s assessment of what some of the insurers offer for this coverage.

State Farm

State Farm offers its customers non-owner insurance at an annual rate of $976. Customers can get the benefits of standard liability coverage and underinsured/uninsured motorist coverage. While their rates are higher than average, they do have a variety of discount criteria, such as safe driver discounts, student driver discounts, and safe vehicle, to name a few. They also provide some beneficial policy add-ons such as ride share insurance and rental car/travel expenses coverage.

Overall, State Farm provides adequate value for its higher-than-average rates. Their discounts can help bring down the cost depending on the type of coverage you have selected. They’re a good choice for anyone looking for convenience and a personalized insurance experience.

Geico

Geico is probably the cheapest provider for non-owner car insurance. With an average annual rate of $621, it definitely stands out among any other insurance companies. In addition to cheaper rates, Geico also offers top-notch customer service and good discounts. The coverage options they provide are standard and include bodily injuries, medical payments, and uninsured/underinsured motorist insurance.

Geico also provides coverage options to drivers with a history of accidents. But this coverage is only available if you file an SR-22 or FR-44.

The discounts that Geico offers are tied closely to safe driving and the customer’s association to certain organizations such as the military.

Progressive

Insurance rates for Progressive are generally higher than average for all lines of insurance. This is true even for their non-owner insurance, with average annual rates of $976. Although folks with an extensive driving history will find Progressive’s rates to be fairly reasonable.

The coverage that customers receive from them includes standard liability, medical payments, and uninsured/underinsured motorist coverage. Despite higher-than-average rates, they do offer attractive discounts through their Snapshot program. The program consists of various different types of discounts such as safe driver, teen driver, and continuous insurance, to name a few, which you can get if you meet their specific requirements. These include having a clean traffic record for three years without any accidents.

How To Get Car Insurance Without a Car?

There are certain things you need to keep in mind while getting non-owner insurance.

For one thing, you can get cheaper rates by researching and comparing quotes from multiple insurers. Make sure to compare quotes from three to four carriers and cross reference what they offer with what you need. If you drive a car owned by a company, you could try to get your non-owner insurance from the insurer that provides them with any other commercial insurance.

If you already have additional insurance policies from an insurer, such as homeowners insurance or rental insurance, you can opt for insurance bundling. Insurers typically bundle home insurance and auto insurance, so there is a chance you might be able to bundle your home insurance with non-owner insurance. Make sure to check with your insurer to see if you qualify for it.

Consulting with a local car insurance agent is also an easy alternative to finding the right type of insurance if you don’t have a car.

Connect With The Best Insurance Agents Near You

Contact a local agent online to help you with your insurance needs.

Find an Agent

Looking For Car Insurance Without a Car? Here’s How to Find an Agent for It! 

Everyone is aware that finding the right insurance agent can be difficult. Especially one close to your location.

Car insurance agents are as distinct as the customers they serve. When looking for an agent, keep in mind that a good one will do more than just sell you a policy. As a result, as a buyer, you must conduct adequate research in order to find the right agent for you, who can obtain the coverage.

If you’re looking for car insurance without a car, never choose the agent you come across. When you come across a potential agent you want to work with try the following:

• Take the time to learn about their services
• Ask for references and get a sense of how they work
• Check their customer service records
• Explore what options they provide you
• Find out which companies they work for

Insurance is an important part of your personal financial plan, so don’t make hasty decisions. A good auto insurance agent will explain the benefits and coverages of an insurance policy to you. If your insurance agent is pushing for the close, you’ve probably chosen the wrong insurance agent.

You can relax knowing that the agents you find on Agency Height are the best in the business and in your area. They are knowledgeable and professional enough that you do not need to take the previously mentioned steps.

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In Conclusion,

Car insurance without a car does sound odd but it is something to consider. Especially if you frequently rent a car or drive one that you do not own. You can get into an accident at any time. As per Statista, in 2019, around 6.6 million passenger vehicles were involved in car crashes in the U.S. Even, if you are careful while driving, you could have a moment of distraction on the road which could lead to a car crash.

If you don’t own a car, non-owner insurance is essential.

Are you looking for car insurance without a car? Find an agent today and explore your non-owner insurance options!

FAQ

Can You Have Car Insurance Without a Car?

If you don’t own a car but intend to drive another vehicle, you can purchase car insurance. A non-owner car insurance policy will cover you for any injuries or damages you cause in an accident.

Can Insurers Decline My Application for Car Insurance Without a Car?

Possibly, if you’re a high-risk driver. Insurers can label you as one if you:

• Drive without a license
• Have multiple traffic violations in a given time frame
• Drive recklessly
• Operate your vehicle under the influence

In some cases, you can get non-owner coverage if you file an SR-22 or an FR-44 certificate. This helps to verify that you have adequate car insurance as mandated by the state.

Is It Possible to Insure a Car That You Don’t Own?

Generally, that isn’t possible. But if you frequently drive a vehicle you don’t own, non-owner car insurance is something you would need. It includes liability coverage for any damage to others who are involved in an accident caused by your negligence.

Are Rentals Covered by Non-Owner Car Insurance?

Yes. Car rental companies require that their renters purchase a liability policy of at least $100,000 before renting a car. For some people this can seem like an extra expense when they’re travelling, so they opt out of buying the coverage They may not realize that if something were to happen while they rented a car, even if they weren’t at fault, they would have to pay for all of the vehicle repairs using their own funds.

If you frequently utilize rental vehicles, getting non-owner insurance will benefit you.

Can You Get Car Insurance Without a Driver’s License?

No. Every state requires individuals to hold a valid driver’s license to purchase any type of car insurance. Even if you’re looking to get car insurance without a car, a driver’s license is mandatory.

Is It Necessary to Have Insurance to Drive a Car I Don’t Own?

There’s no law that specifically mandates individuals to have insurance to drive someone else’s car with permission. However, from a practical point of view, some form of insurance is essential in case you get into an accident and cause significant damage to another person’s vehicle or property.