Do I Need Car Insurance If I Don’t Own A Car But Drive Someone Else’s?

By Mike Anderson Posted in Car Insurance News

Driving As A Car-less Driver?

Do you hold a driver’s license but do not own your own car? Depending on the state in which you reside, there may be a requirement by the Department of Motor Vehicles, for a car insurance company to attest that a driver has the ability to pay for any future claims up to the a state-required limit.

For those individuals who do not own a vehicle but oftentimes will either rent a car or use a family or a friend’s car could purchase what is known as a non-owner policy. If an individual drives a car not owned by them, the car insurance is primary. If more damage occurs than coverage protected by the policy, the driver would become liable for the remaining uncovered damage to the vehicles and/or persons involved in the accident.

It is very important to determine if you live in a state that required a person who holds a driver’s license to be insured.

Options To Insure Without Being A Car Owner

Even though you do not own a car of your own, you may still be required to carry what is known as an SR-22. In this case, it is known as a non-owners SR-22 car insurance policy. The car is not covered by the SR-22 or a non-owner’s car insurance policy. It is the individual who is covered under the terms and conditions.

The non-owner SR-22 covers only the liability portion up to the limits purchased within the policy. It does not cover the car in which the driver may be driving, but the liability the driver may cause. The non-owners SR-22 shows that the driver/policyholder is financially responsible in the case where he or she are the one negligent in the accident.

This type of policy will cover accidents for any car you are driving.

Related posts:

  1. What Is Non Owner Auto Insurance?
  2. Can You Get Car Insurance With A Suspended License?
  3. What Is The Best Auto Owners Insurance Company Or Companies?
  4. Is My Car Covered When Someone Else Drives My Car?
  5. Does A Student Driver Need Car Insurance?

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