All About Non Owner’s Auto Insurance in New York State

Last Updated on April 3, 2019

If you don’t own a car in New York State, yet you intend on driving a vehicle, it’s a good idea to purchase non owners auto insurance.

This type of auto insurance is a liability policy that covers individuals who operate motor vehicles, but do not own them. For example, if you rent or borrow a car on a frequent basis, or you have a need to file an SR-22 without a car, a non owner’s policy is a wise investment.

Non Owner’s Car Auto Insurance Defined

Also known as non driver’s insurance, non owner auto insurance is a form of car insurance that offers liability coverage for those who operate a motor vehicle but do not own one. With this type of policy offers liability coverage for property damage and bodily harm when you operate a vehicle that you do not legally own. If you were to borrow a vehicle from a friend, for example, and got into a collision and were at fault, a non owner’s car insurance policy would safeguard you from legal claims, just like a regular liability auto insurance policy would.

In addition to assisting with the cost of medical care and property damage that occurs in an accident, a non driver car insurance policy can also offer other protections, such as:

• Coverage for personal injuries, which would assist with the cost of medical care if you were personally injured in an accident.
• Underinsured and uninsured motorists liability coverage, which could help to cover the cost of damages and injuries if you are involved in an accident with another motorist who does not carry insurance, or who does not have enough insurance.
• Liability coverage for rental cars, which would assist with the expenses associated with an accident that may occur while you are operating a rental car.

It should be noted that a non owner’s auto insurance policy will not offer collision or comprehensive coverage. Since there isn’t a particular vehicle assigned to the policy, there is no way that this type of policy can offer these coverage options. With that said, a non driver policy will only cover liability; it will not cover damages to the vehicle you are operating or any other type of property that may be damaged.

Important Things to Know About a Non Owner’s Auto Insurance Policy?

Unlike other car insurance policies, with a non owner’s auto insurance, only the person who purchases the policy will be covered. So, if you purchase a policy, only you will be covered; not your spouse or child.

Generally, deductibles are not attached to these policies. In other words, you won’t be required to pay a pre-determined amount of money out of your own pocket before the coverage your policies offers kicks in. It should be noted that the reason there usually isn’t a deductible is because generally, a non owner’s policy is considered a secondary policy; it’s used when the primary insurance coverage that the owner of the vehicle carries doesn’t cover the cost of all damaged. For instance, if you were involved in an accident while you were driving a friend’s car and there was a $20,000 limit on his liability coverage, yet you caused $30,000 in damages, you would be liable for the $10,000 that his liability policy won’t cover. Your non owner’s auto policy would cover the $10,000 you are responsible for. Unless the damages that occur while driving a car that belongs to someone else exceeds the limits of the policy the owner of the vehicle carries, non owner’s coverage will become active.

Is Non Owner’s Car Insurance Worth It?

While you are not legally required to carry this type of car insurance if you do not own a car, it’s still a wise idea to have; especially if you live in the State of New York and any of the following apply to you:

• You regularly use Zipcar or other car-sharing services.
• You frequently rent vehicles
• You use a vehicle that belongs to someone else on a regular basis
• You were convicted of a DWI, DUI, or another serious offense and have to file a Certificate of Financial Responsibility, or an SR-22, in order to have your driver’s license reinstated. This form proves that you have auto insurance. While there isn’t an SR-22 requirement in New York, a non owner’s policy will suffice if you do not own a car and may aid in the process of having your license reinstated.
• You want to ensure that you have continuous coverage. For example, if you recently purchased new car insurance and your old policy expired, a non owner’s policy will ensure that you have coverage during the lapse.

Purchasing Non Owner’s Coverage

Most of the largest insurance companies in New York offer this type of coverage. To obtain coverage, simply contact a reputable agent to find out more.