Author Topic: Non-Owner car insurance. Any carless people have it?  (Read 2555 times)

spartana

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Non-Owner car insurance. Any carless people have it?
« on: December 08, 2019, 11:53:55 PM »
I'm planning to go carless for awhile but want to be able to occasionally rent cars for a month or longer here and there several times a year and also borrow a friend's car occasionally.  I read that insurance companies have a liability policy for non-car owners that covers what a regular liability policy covers (other persons car, medical, etc) with no deductible for around $500/year. It also allows you to avoid a gap in insurance which could raise your rates. Collision/Comprehensive I can  get via my CC when renting.

So do any of you car-free people have this? Good, bad, worthwhile? I never heard of it before but sounds like a good thing for someone who rents or borrows cars often.
« Last Edit: December 08, 2019, 11:57:14 PM by spartana »

terran

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #1 on: December 09, 2019, 06:19:06 AM »
It's definitely a thing. Whether or not it makes sense compared to buying insurance from the rental company would depend on the rates you get for a non-owners policy (which will be specific to you) and how often/for how long you rent a car. I'd talk to an insurance agent and call some of the companies that don't use agents (like Geico) to see what they offer. I found this: https://www.thesimpledollar.com/insurance/auto/best-non-owner-car-insurance/

Regardless of the cost comparison between buying a policy and buying through the rental company, you'll likely need a policy if you want to get an umbrella policy.

jamaicaspanish

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #2 on: December 09, 2019, 08:24:56 AM »
We had a non-owner insurance policy with USAA when we lived overseas.
It covered us for rentals when we visited during summers and the holidays.
And . . . it kept us from having a gap in coverage when we returned to the States.

The USAA rate was about $30/year . . . one of the biggest bargains ever (though ymmv)

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #3 on: December 09, 2019, 08:46:00 AM »
Wow $30/year! That's a great deal. I haven't called my insurance co. yet (State Farm) but it appears they offer it but I read that it was a lot higher - like $500/year which be much less then paying liability on rentals which seem to be around $10/day but a lot more than $30. But as @terran pointed out I may have to get it to keep my umbrella policy as it seems you need 2 types of insurance to get an umbrella policy. I  have homeowners and earthquake (besides my current vehicle policy) so that might be enough to keep my umbrella policy.

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #4 on: December 18, 2019, 01:34:21 PM »
Thought I'd update this since others may be clueless (like me) about the existence of non-owner liability car insurance. So now I am officially car-less and my insurer allows me to retain my current liability policy for 30 day. If I don't buy another car by then, I can buy a non-owner liability policy for about $500/year with no deductible.  That way I can rent or borrow cars as needed and won't cause a big gap when (if) I get another car. That also allows me to keep my million dollar umbrella policy too.
« Last Edit: December 18, 2019, 01:36:01 PM by spartana »

shelbster

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #5 on: December 18, 2019, 02:58:26 PM »
I have looked into this before and in doing research on it, I learned that most (if not all) car owner insurance policies covers people borrowing your car (particularly if they do not live at the same address). At least in the US.

From what I can tell, you having non-owner insurance is just a nice boost to assuage any fears that your friends might have about you borrowing their car, being at fault for an accident, and having the victim come after them, the car owner. Itís a weird system.

Where I landed was that it probably isnít worth the ~$500.

Canít speak to your umbrella liability policy, though. Given that you can sometimes pay less overall by bundling more (seriously, insurance is weird), it might be worth it in your case to take on the non-owner insurance and keep your existing umbrella liability.

PMG

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #6 on: December 18, 2019, 03:08:17 PM »
Shop around for another price.  I had it for about $200 a year when I was carless and renting several times a year.

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #7 on: December 18, 2019, 03:19:42 PM »
I will shop around but I have all my other insurances bundled with State Farm - home owners, earthquake, umbrella, and car - so I'm not sure I can get it lower here in expensive SoCal. I will mainly be using it for rentals while travelling in the US. I usually rent for a month several times a year (maybe 4 months total) and liability from rental companies is around $10-$20/ day so $500/year is cheaper. The comp/coll is covered by my CC for 31 days for each rental. I will occasionally drive someone else's car but that wouldn't be often as I can bike or walk most places when home.
« Last Edit: December 18, 2019, 03:23:36 PM by spartana »

robartsd

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #8 on: December 18, 2019, 03:40:10 PM »
I will shop around but I have all my other insurances bundled with State Farm - home owners, earthquake, umbrella, and car - so I'm not sure I can get it lower here in expensive SoCal. I will mainly be using it for rentals while travelling in the US. I usually rent for a month several times a year (maybe 4 months total) and liability from rental companies is around $10-$20/ day so $500/year is cheaper. The comp/coll is covered by my CC for 31 days for each rental. I will occasionally drive someone else's car but that wouldn't be often as I can bike or walk most places when home.
I wonder if anyone would rate you for coverage only outside the region you live in so that you can avoid the high cost of SoCal but still have liability insurance while traveling. That wouldn't provide any coverage when driving someone else's car locally.

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #9 on: December 18, 2019, 03:54:49 PM »
I will shop around but I have all my other insurances bundled with State Farm - home owners, earthquake, umbrella, and car - so I'm not sure I can get it lower here in expensive SoCal. I will mainly be using it for rentals while travelling in the US. I usually rent for a month several times a year (maybe 4 months total) and liability from rental companies is around $10-$20/ day so $500/year is cheaper. The comp/coll is covered by my CC for 31 days for each rental. I will occasionally drive someone else's car but that wouldn't be often as I can bike or walk most places when home.
I wonder if anyone would rate you for coverage only outside the region you live in so that you can avoid the high cost of SoCal but still have liability insurance while traveling. That wouldn't provide any coverage when driving someone else's car locally.
I think I'd rather keep coverage here so I could drive BF or sister's vehicles if needed. I'm ok with paying $500 as its much less than regular liability and I'd save a lot by not buying or owning another car. Still may buy something else but its nice to learn I have the option to rent or borrow cars if car-less long term.

aloevera

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #10 on: December 18, 2019, 03:57:57 PM »
Does the credit card rental car coverage not cover liability as well when you rent?

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #11 on: December 18, 2019, 04:04:19 PM »
Does the credit card rental car coverage not cover liability as well when you rent?
No just the collision coverage for damage to the rental car.

PMG

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #12 on: December 18, 2019, 04:13:41 PM »
If I remember correctly (and perhaps terms vary) credit card insurance is only secondary insurance and if you do not have a primary insurance then it was not active.

FatFI2025

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #13 on: December 18, 2019, 04:39:40 PM »
We had a non-owner insurance policy with USAA when we lived overseas.
It covered us for rentals when we visited during summers and the holidays.
And . . . it kept us from having a gap in coverage when we returned to the States.

The USAA rate was about $30/year . . . one of the biggest bargains ever (though ymmv)

I did this too because I didn't want a gap in coverage and pay more when I moved back to the states. My memory is around ~$15/mo, so a little higher.

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #14 on: December 18, 2019, 04:42:34 PM »
If I remember correctly (and perhaps terms vary) credit card insurance is only secondary insurance and if you do not have a primary insurance then it was not active.
I think that's true but it seems to depend on what kind of CC you use. Some act is the secondary insurance and some as the primary (Chase Saffire for instance) and some (American Express) allow you to buy a renters coverage for a few bucks/rental to make them primary.  If you don't have collision coverage but only liability I assume that any CC.you use would be primary for that.

This from a Nerdwallet article:

"WHAT IF I DON’T HAVE PERSONAL AUTO INSURANCE?

Generally, you get an even greater benefit from your card: Secondary coverage becomes primary for collision. However, if you rent cars often, the Insurance Information Institute recommends you consider a non-owner liability policy."
« Last Edit: December 18, 2019, 04:51:23 PM by spartana »

FatFI2025

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #15 on: December 18, 2019, 04:56:34 PM »
...the Insurance Information Institute recommends you consider a non-owner liability policy."

Yes of course the Insurance Information Institute recommends that you buy extra insurance!

aloevera

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #16 on: December 18, 2019, 05:14:03 PM »
If I remember correctly (and perhaps terms vary) credit card insurance is only secondary insurance and if you do not have a primary insurance then it was not active.

I have one where it's primary (Chase) and one where it's secondary, but primary if I'm on a business trip (Cap One). So YMMV.

Fuzz

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #17 on: December 19, 2019, 08:55:02 PM »
FWIW, we would lose money to bundle our homeowners and auto with State Farm. Their auto coverage was like 2x Geico.

$500/year for a non-owner's policy seems really high. Also, it does seem like a good thing to have, since you could borrow a care from someone carrying the minimums and be stuck with their minimums. What's a quote from Geico?

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #18 on: December 20, 2019, 08:29:33 AM »
FWIW, we would lose money to bundle our homeowners and auto with State Farm. Their auto coverage was like 2x Geico.

$500/year for a non-owner's policy seems really high. Also, it does seem like a good thing to have, since you could borrow a care from someone carrying the minimums and be stuck with their minimums. What's a quote from Geico?
I haven't checked quotes yet because I'm not sure if I'll buy something else yet. I've had State Farm forever and they seem reasonable to me but maybe not. I just paid all my other bundled insurances and home owners was $380/year, earthquake was $375/year and a $1mm dollar umbrella.we $195/year. I think the liability part of my vehicle with fairly high limits and deductible was around $700/year but can't remember for sure. I don't know how that compares to Geico but seems lower then some others like AAA and Farmers.

Tris Prior

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #19 on: December 20, 2019, 07:11:20 PM »
I had no idea this was even a thing; we've been carfree for about 15 years and it's likely that within the next 2 or 3 years we'll be moving someplace with very limited public transport, unlike our hometown. I assume our insurance rates are going to be horrible since we'll essentially be treated like brand new drivers with no history (even though both our histories were spotless, no accidents, no tickets)

joshuagraham_xyz

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #20 on: December 20, 2019, 07:38:00 PM »
Hopefully, it will soon that driverless cars (or driverless taxis) and the liability indemnification by the manufacturer make this all a moot point.

brooklynmoney

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #21 on: December 20, 2019, 09:01:27 PM »
I looked into getting this and because I donít have insurance currently it was expensive to buy because I am in the uninsured pool which is ridiculous because I donít own a car which is why I donít have insurance now!

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #22 on: December 21, 2019, 03:54:18 PM »
I looked into getting this and because I don’t have insurance currently it was expensive to buy because I am in the uninsured pool which is ridiculous because I don’t own a car which is why I don’t have insurance now!
That seems totally weird to me too but maybe they base it on years of. driving experience (or safe driving experience) and since you don't have a car you must not drive often so you are more prone to crash.  Like a teen. 

DaMa

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #23 on: December 26, 2019, 02:06:22 PM »
Like Fuzz, my recent State Farm quote on auto was more than 2x Progressive.  I had SF for everything until about 6 years ago, when their auto rates seemed to skyrocket.

Thanks for the info on the auto-less coverage.

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #24 on: December 27, 2019, 09:32:55 AM »
Like Fuzz, my recent State Farm quote on auto was more than 2x Progressive.  I had SF for everything until about 6 years ago, when their auto rates seemed to skyrocket.

Thanks for the info on the auto-less coverage.
I will check out Geico after the holidays and see what their bundled insurances cost. It sounds like they are more affordable but I'm not sure they would be much lower. My liability with fairly high limits was $600/year and I posted the rest above. I'm still unsure if I should get another vehicle or not. 

spartana

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Re: Non-Owner car insurance. Any carless people have it?
« Reply #25 on: February 22, 2020, 02:50:59 PM »
Just got the official State Farm non-owners bill and it is $190 for 6 months. No deductible and some other things I wanted. That is with high coverage limits I needed in order to keep my umbrella policy too. So not as bad as I though it would be and about a third lower than my old liability policy with the same limits.