I always borrow my roommates car and if its not available, renting a car is my other option. Is there a kind of auto-insurance that will protect me in case I get into a accident? How does it work?

Kenneth

Pittsburgh, PA

Yes there is a kind of auto insurance that can protect you and it’s called the non owner car insurance. This is not yet a requirement by any state, but if you want to prove to your roommate that you are a responsible driver, purchase one of these and surely he will be happy that you did.

Non owner car insurance is also perfect for people who rents car or people who drives company cars. In most cases, you can save money by having this kind of auto insurance rather than paying insurance cost every time you rent a vehicle. On the case of people who drives company cars, most company doesn’t tell their employee what kind of auto insurance coverage they are having when they drive the company car thus having this kind of coverage is an advantage.

Non owner car insurance works by protecting your assets and specially you. It basically works like this; assume that you are driving someone else’s vehicle and then you got involve in a car accident. The insurance policy of that someone else’s vehicle will take care of the cost of the damage. If that someone else’s car insurance company or the car owner decides to sue you into a legal battle, your non owner car insurance will pay for any expense through out the whole case. Take note also that medical expense will also be handled by your car insurance company.

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

I am from Ireland and I will be in Ewa, Hawaii and I would like to know if a non-US resident can get non-owner coverage auto insurance or do I need drivers license in Hawaii?

Paul

Ewa, HI

Whether you are getting a non-owners car insurance policy or a regular personal car insurance policy in Ewa, Hawaii most all insurance companies will require you to have a US drivers license. You may be able to begin a vehicle insurance policy with a foreign driver’s license but most insurance carriers will require you to obtain a US license within thirty days or cancel your auto insurance policy.

If you are visiting the Hawaii and want to buy a non-owners auto insurance policy you may be able to shop around and find a specialty car insurance carrier. If you want this type of car insurance policy to rent a vehicle it may be easier to purchase the car insurance from the rental car agency. Or if you want a non-owner’s policy to cover you on a friend’s car you will be borrowing, you may instead want to check if your friend’s auto insurance will cover you while you are driving their vehicle.

If you are staying in the Hawaii and not just visiting then contact the HI Department of Motor vehicles to check if it is possible for you to get a state driver’s license to make it easier to insure a car and purchase one if you so desire.

Tags: auto insurance, non owners 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

I have a drivers license in Haverhill, Massachusetts but I have no car or insurance, Can I drive another persons car that is insured in Massachusetts?

Tara

Haverhill, MA

The Massachusetts compulsory auto liability insurance law requires that all vehicle have insurance on them with the minimum limits of $20,000/$40,000 for bodily injury and property damage of $5000. From this information it would appear that it is the car and not driver that the insurance must be on to comply with the law.

If this is the case then an individual with a valid Haverhill Massachusetts driver’s license but does not own a vehicle to put insurance on, and does not carry a non-owner’s policy, should be able to drive other people’s insured vehicles with their consent. The individual giving the uninsured driver permission to drive their car should verify with their insurance company though to make certain the friend they are lending the vehicle to will be covered by the owner’s policy if they are in an crash.

If you are going to borrow your friend’s vehicle on a regular basis then the insurance carrier may require you to be added to the car insurance policy in order for you to be properly covered.

Tags: auto insurance, non owners insurance

I am just wondering how much a non owners insurance cost?

Austin

Aurora, IL

Non-owners insurance is coverage to provide a motorist liability protection for when they are at fault in an accident but do not own a car. Typically, non-owners policies can include liability, uninsured/underinsured motorist coverages and medical payments.

Generally, a non-owner auto liability policy will cost somewhere between $200 and $300 a year and it will depend upon the rating system of the insurance carrier in which you get a policy from. Rating factors such as your driving history will be looked at. This type of insurance policy is cheaper than an owner’s policy since you do not have a specific car to cover. In addition to that, you are not as much of a risk as a car owner to an insurance carrier since you will not normally drive as much as an individual who has their own car at their disposal to use whenever they please.

What is the difference between an sr22 and the non owner’s sr22?

Del

Thank you for asking Del

Basically, an SR-22 is a form which must be filed by the insurance provider to show the state or court that an individual has car insurance liability in effect. Typically it is required of a driver who has been involved in an accident or cited of a moving violation and was unable to prove financial responsibility. Its also can be required as part of the reinstatement of license process in some states.

If you are required to acquire a SR-22 form or financial responsibility certificate in this way and do not own a car, you can get a Non-Owners SR-22. Generally, a non-owners SR-22 permits the named insure to drive any motor vehicle that they are given permission to operate the vehicle by the car owner, unless the motor vehicle is owned by a household member.

Basically, the difference between a regular SR-22 and a Non-Owners SR-22 is that with a Non-Owners SR-22 policy is required if you do not own a vehicle to directly insure.

Goodluck!

MariCAR