Drivers who don’t own a vehicle but still want to maintain coverage if they’re driving a rental vehicle, or someone else’s automobile, can stay covered via non-owner car insurance. Obtaining quotes for this type of coverage is often more difficult than getting them for standard insurance coverage, but it’s still possible from certain companies. One of the companies that offer this type of coverage is GEICO.
What Is Non-Owner Car Insurance?
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Also called non-drivers insurance, non-owner car insurance gives liability coverage for property damage and bodily injury when you’re driving a vehicle you don’t own. If you’re in an accident with another driver, and you are at fault, this policy would protect you from potential lawsuits, just like a standard policy would.
In addition to liability coverage, a non-owner policy can include the following types of coverage:
- Underinsured or uninsured motorist liability coverage
- Personal injury protection or medical payments coverage
- Rental car liability coverage
No specific vehicle is associated with non-owner insurance, so this type of coverage doesn’t include comprehensive or collision coverage. As a result, it won’t cover any damage done to the vehicle you were driving and medical bills from injuries you sustained from the accident.
Keep in mind that if you live with a roommate who has a vehicle, you aren’t eligible for a non-owner car insurance policy. Insurers believe that you have regular access to a vehicle if that roommate owns one. In this instance, you would need to be covered by your roommate’s insurance if you plan to use the vehicle occasionally.
Why Is Non-Owner Car Insurance Cheaper?
Non-owner auto insurance is typically between 5 to 15% cheaper than a full coverage car insurance policy. The reason is that a non-owner policy doesn’t cover the costs associated with repairs or the replacement of a vehicle. Instead, it only covers the costs associated with liability. Full-coverage policies include collision and comprehensive insurance and factors in the costs associated with repairing or replacing your vehicle that was involved in an accident, no matter who was at fault. If you don’t own a vehicle, you don’t need this coverage.
Another reason why non-owner insurance is cheaper is that many insurers assume you’ll drive less often and are typically not as likely to file an insurance claim. When you fill out an insurance questionnaire, you might find that the company wants to know how many estimated miles you drive annually. Those who drive more often are usually at an increased risk of getting involved in an accident and filing a claim. These companies assume that those who don’t own a vehicle won’t drive as often and get involved in accidents.
When Should You Consider Non-Owner Car Insurance?
Several situations might cause you to purchase non-owner car insurance. A few of these instances include the following:
- You rent vehicles often. Using non-owner car insurance can save you money because you won’t need to purchase the rental car company’s expensive liability coverage. Always ask the rental company what type of coverage it offers, and determine if the non-owner insurance policy is the better option. Also, some states don’t require these companies to offer liability protection, so you’ll need coverage.
- You borrow other people’s vehicles often. If you borrow other people’s vehicles frequently and aren’t listed on their policy, you might want to consider a non-owner car insurance policy. Expenses from an accident might exceed the owner’s level of coverage, leaving you liable for the rest of the fees.
- You want to avoid a lapse in coverage. If you’re in between vehicles, it might make sense to get a non-owner car insurance policy. This option allows you to stay with the same insurance company without losing coverage. This option comes in handy if you have more than one policy with an insurer, such as renter’s or home owner’s insurance. Make sure to change the policy once you purchase another vehicle.
Does GEICO Offer Non-Owner Car Insurance?
Several major car insurance companies offer non-owner car insurance, and GEICO is one of them. You don’t need to be a current GEICO customer to secure this type of coverage. Several factors determine car insurance costs, such as your age, location, and driving history. Unlike standard car insurance policies, the vehicle isn’t considered because you’re not insuring a specific vehicle. To determine how much a non-owner car insurance policy will cost from GEICO, you can reach out directly for a free quote.
Non-owner car insurance usually costs between $200 to $500 a year, which is less than the $611.12 average that people pay annually for liability insurance. However, it’s important to remember that the average annual cost depends on other factors such as location, age, gender, marital status, and driving record.
How Does Non-Owner Car Insurance from GEICO Work?
The main part to remember about a non-owner car insurance GEICO policy is that it serves as a secondary insurance policy. It pays for damages above what the vehicle’s primary insurance covers. The primary insurance coverage limit must be met before the non-owner policy kicks in.
For instance, say you borrow a friend’s vehicle and get into an accident. You end up causing $75,000 worth of property damage. Your friend’s coverage only includes $25,000 of coverage, which means that you would be responsible for the remaining $50,000. Your non-owner car insurance policy would then apply as long as you have at least that much property damage coverage.
However, if your friend’s policy includes $75,000 worth of coverage, you wouldn’t need to use your non-owner car insurance policy. Non-owner car insurance typically doesn’t have a deductible, so you won’t pay anything out of pocket after the accident.
If you don’t own a vehicle but plan to use a rental vehicle or someone else’s vehicle sporadically, you might want to consider purchasing a non-owner car insurance policy. GEICO offers this type of coverage, so you’ll want to reach out to the company directly to get a quote to make sure you’re receiving the best price available.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.