No Car? You May Need Nonowner Car Insurance

[Liz]

With the advent of the sharing economy, the number of non-owning drivers is proliferating. Especially for people in urban areas using services like Zipcar, this insurance might make sense to protect against at-fault accidents. From my understanding, these policies only offer liability coverage and are more limited and situational.


No Car? You May Need Nonowner Car Insurance | Fox Business

 

[nyc2phi]

This was a discussion in my office last week. We could not come up with the answer as to what someone is to do if they live on their own, owns no car, but has a drivers license.

This answers that .. Thanks !

 

[BlockO]

In some states, a named operator policy would be the only solution.

In other states, they have what is called a broadform named driver policy. Basically works the same as a named operator policy, except that it also covers owned as well as non-owned vehicles. (Great for the guy who owns a bunch of cars, but doesnt need comp and collision on any of them)

A third option is a financial responsibility bond. But very few states have them. In my territory of 6 states, ohio is the only one that has FRB's. these also cover both owned and non-owned vehicles. They're usually the cheapest option of the 3 but the downside of frb's is that it only offers state min liabiltity and nothing else.

Both named operator and broadform policies offer higher limits of liability and most offer umbi and med pay.

All three options will work for a non-owner who needs coverage. They will all also work for a driver who needs an sr22 or an fr44.

 

[Milkman1265]

I was having a discussion on this last week as well. Who offers non owner operator stand alone insurance?

Over here in NY, coverage gaps causes higher rates when they go and get a car again.

 

[BlockO]

I was having a discussion on this last week as well. Who offers non owner operator stand alone insurance?

Over here in NY, coverage gaps causes higher rates when they go and get a car again.

I have no clue about NY, but just about any non-standard auto company offers non owner policies.

On a non owners policy, when an insured buys a car, it's usually handled one of two ways:
- some companies simply add the vehicle to the policy and convert it to a regular auto policy.
-other companies want you to cancel the non owners policy and re-write it as regular auto.

 

[benwrigh]

Gotta be careful with these policies, a lot of exclusions. Every non owner policy I have seen excludes coverage for vehicles in the household or that the insured has regular access to.

 

[BlockO]

Gotta be careful with these policies, a lot of exclusions. Every non owner policy I have seen excludes coverage for vehicles in the household or that the insured has regular access to.

Very true! Which is why the broadform option is better if you're in a state that offers it.

 

[USF3983]

Yeah I have run into the same problems with regular access to a vehicle.

 

[johnwilliam]

Hmmm, you have to be alert bortha, before signing of any bond, clear your every querry, read terms and conditions craefully then make a deal. there are alot of exclusions in insurance field. Thanks

 

[Milkman1265]

Someone with 6 months prior, gets like 50% off their rates here lol.

These arent hard fact numbers, but i know if i quote the same age group same car class etc... n prior will get around 1500, whereas 6 months prior insurance gets 700.

non own cost about 200 bucks here, wouldnt it just make more sense to get non own 6 months prior to getting your insurance.

same as getting a ho4/ho6 with your auto if the savings outweigh the extra cost.

Just nyc, though rates are through the roof, i get 500 - 4300 in premiums