Hello! My work includes a lot of driving. Though I don’t own a car, I always use our company’s car. And sometimes I do rent vehicles during times when the company car is not available. Is it possible to acquire a car insurance even though I don’t have a vehicle?

Devon

Houston, TX

Yes you can! This type of coverage is called the Non-owner auto insurance. You may want to consider buying this type of coverage if you are always renting or borrowing a vehicle from someone often. Let me ask you a question Devon, do you know how much coverage your company’s insurance policy is providing? If your answer is no, it’s advisable for you to get this type of coverage. There is also another advantage since you mentioned you sometimes rent a vehicle. Did you know that you can save more money by acquiring this coverage rather than buying your own insurance coverage through your rental company every time? But wait, there’s more! You also have added assurance that you are covered for every vehicle you are driving and not just the one your renting.

Now, what will happen if an accident occurs and you are behind the wheel of a borrowed or rented car? Answer is the car owners’ insurance policy would be in effect. They will be responsible for any damages owing over the policy limits. Although it is possible that you might get charged with legal action from the owner or the insurance company to recover the money paid out after the accident, the non-owner insurance policy will take car of that.

So, if you want to acquire this type of coverage, it’s just like getting your car insured. Do the usual check websites, get quotes from them, compare coverage and you’re done. Just make sure you pay attention to the policy’s exclusion. Not all policy covers all situation, you don’t want to assume that you are covered only to find out that you aren’t after an accident.

Tags: auto insurance, non owners insurance

I was caught driving without a license. After paying the fines, they said I need to have an SR-22 insurance though I have never had a driver’s license. Is this true? I live in Fontana CA.

Rob

Fontana, CA

Some states, like California, have a driving record of a person without a license so it is possible that a state may require an SR-22 even without a driver’s license.

It seems that your state penalizes someone for driving without a license, and insurance as well, by requiring the person to get an SR-22. You may need to have this if you want to get a license at this point or may be required if you want to apply in the near future.

The SR-22 serves as a proof of financial responsibility. You may want to check with your local DMV why you should acquire an SR-22 even without a driver’s license.

Tags: auto insurance, car insurance, sr22 insurance

The policy period of my auto insurance is going to end soon. I would like to change my insurance company when my current insurance ends. What’s the best way to go about it? I live in Columbus, OH, if it helps any.

Carol

Columbus, OH

Selecting, purchasing and cancelling auto insurance coverage is your right. Choose the insurance company that you feel comfortable in best. Insurance companies should be insuring and assuring. Cancelling auto insurance subscription is easy. Most auto insurance companies say that you can cancel your policy anytime by just sending a written request. Now, that’s convenience for you. Of course, you’ll have to check in Columbus, OH, with your insurance company if they allow this procedure. You may call them, write them or visit them to cancel your policy. What you don’t want to do is assume that your policy will automatically be cancelled after the policy has expired. If you don’t inform them that you are discontinuing the policy, they will still bill you even after the policy expired. When they don’t hear from you (when the bill is not paid) they will then cancel your policy because you failed to pay your due. The policy gets cancelled, but the reason for the cancellation (failure to pay premium) will appear on your credit report. A bad mark on your credit report will affect your next auto insurance policy. This may become a reason for a denial of insurance application or a higher premium rate.

Tags: Car Insurance Company, car insurance quotes, car insurance rate

My son does not have his own car right now and still on the process of getting his drivers license, can he get a non owners auto insurance maybe?

Mary

Jacksonville, FL

Generally, it would be much cheaper to add a teen on your auto insurance policy than have them get a separate car insurance. You may be able to get a multi policy discount if you add your son’s car on your car insurance policy.

Once your teen starts driving you must inform your car insurance provider. Adding teenager can be very expensive since they are considered inexperienced when it comes to driving and get involved in an accident usually. You can expect an increase in your car insurance policy. You may consider purchasing an umbrella liability policy or you may also consider increasing your liability limits.

Remember, if the vehicle is owned by a member of the same household, non owners policy do not cover it.

Tags: auto insurance, cheap auto insurance, non owners insurance

Reader’s Question:

What does bond insurance means?

James

New York NY

Usually a bond insurance is also called an SR22 car insurance but in some states it is called deposit or surety bond. An SR22 insurance is a certificate or bond that show proof that you have the state minimum required liability. Usually after getting citation for DUI/DWI or driving without car insurance you will be required to verify to the state that you have that state required financial responsibility before operating your automobile.

Not all states bond insurance for your vehicle insurance and typically it is used to prove that you have the met the state’s automobile insurance requirements.

Tags: sr22 insurance

Is there some type of auto insurance in Clarksville, Tennessee where the driver is the only one insured, but not the vehicle? If so, then what is it called?

Bridget

Clarksville, TN

If you do not own a car there is a car insurance policy that a driver can obtain to drive other people’s cars. This insurance policy is called a non-owner’s policy. Normally it is written when an individual needs coverage for his or her personal use of a car not owned by him or a family member.

If you own a car then the vehicle would need to be on the insurance policy since the type of vehicle you are driving is part of the rating process of an insurance carrier. The car itself, including what type of automobile it is, its safety features, etc can make a difference in your auto insurance.

Since insurance carrier’s guidelines and underwriting criteria can vary, you will need to check what the qualifications are for getting a non-owners policy from the insurance company in Clarksville, TN that offers you this type of insurance. The criteria usually would at least include not owning a car and having a valid driver’s license.

Tags: non owners insurance

Am I still going to be required by my state of Maine to carry auto insurance even if I do not own a car?

Paula

Portland, ME

You are not required to carry auto insurance on yourself if you do not own a car, however, when driving other people’s cars you will need to make sure their insurance extends to you so that you can show proof of insurance if requested by law enforcement.

If you fail to produce evidence of insurance in Maine, you will be required to file proof of financial responsibility through an SR-22 insurance certificate or face suspension of your license and registration privileges. So, even if you do not own a car but is required to carry SR-22, then you could be required to carry insurance, this may be in the form of a non-owner’s policy.

So again, showing a proof of auto insurance is required when you are driving other people’s vehicles. I would suggest making sure that the vehicle is insured by the car owner and that you are covered by that insurance just in case you’d be involved in an accident.

I got a DUI in 2003 and haven’t reinstated my drivers license yet. I recently got a new work and need to buy a vehicle quickly. Can my brother put me on her insurance if I need an SR-22? Is it more cost effective to try and obtain it on my own? Do I do this before purchasing the vehicle?

Fred

Lincoln, NE

In many states you have to provide insurance when registering a car so it is helpful to obtain insurance beforehand. If you do not have a car at the time of buying insurance you will likely be able to obtain a non-owners SR-22 which you can change into regular SR22 policy when you buy a car.

If you want to be listed to your brother’s insurance policy you will need to speak with the insurance provider that he is with and check if it is even possible. Even if it is, it would be best to compare the quote of that insurance with obtaining your own policy. Until you get the quotes for both you will not be able to know which would be more cost effective.

In order to keep the insurance policy you are buying the insurance providers typically will require you to be in the process of having your license reinstated.

I planning to purchase my first car. What kind of insurance can I have for rentals cars or test drives?

Mike

Great Falls, MT

Without having an actual vehicle to insure or insurable interest in a car (by having your name on a title or lease) there are limited options for you with regards to car insurance. A non-owners policy is one option since it is for drivers that do not yet own a car to insure.

If you plan on renting cars on a daily basis, a non-owners policy might be more cost effective than relying on the insurance sold at rental companies. But, collision and comprehensive coverage are not usually available for this type of policy so it is likely that you would still need to buy this extra coverage from the rental company.

As for insurance to test drive cars, you may ask if a non-owners policy plus any insurance a dealership has on its cars would be enough to let you go on a test drive.

Me and my husband will not going to have a vehicle in a month or so, I just want to know if we need to get a non owners? Is it possible to be on high risk if we do not have an insurance for a month?

Isabel

Thank you for asking Isabel

If you don’t have insurance because you do not own a vehicle, does not make you a ‘high risk.’ Those individuals that constitute ‘high risk’ are individuals like teenagers, a bad driving history, and a bad credit score to most insurance companies. Some companies use credit to help determine risk of the certain individual. According to their statistics, those individuals with good credit history are better drivers and less likely to be involved in accidents than those motorist with bad credit record. Now, it would be best if you and your husband obtain a ‘non-owner’ insurance policy if either of you will be operating someone else’s motor vehicle. This non owner policy will secure coverage for liability, uninsured motorist coverages and medical payments for an individual will be driving a vehicle owned by somebody else and who does not own a car.In addition to that, you may want to check if you can add a car to that insurance policy in the future and turn it from a ‘non-owner’ policy to an “owner’s” policy. In that case, you do not have to cancel this policy and have to start up a brand new.

Goodluck!

MariCAR