What is a Non-Owner Car Insurance Policy?
A non-owner car insurance policy provides coverage for a driver who doesn't own their own vehicle. Not everyone needs this type of policy, but there are some special circumstances where it makes sense to invest in this kind of plan.
There are many situations where non-owners may still operate a vehicle. Perhaps you occasionally use your parent's or roommate's car. If you spend a lot of time traveling, you may not own a car because you prefer to rely on rentals. Car sharing services can also provide an alternative to car ownership while still giving you plenty of opportunities to get behind the wheel.
In most cases, the vehicle's owner will have an insurance policy that meets the state's minimum coverage requirements. However, you may want or need additional coverage for a variety of reasons.
Types of Non-Owner Car Insurance Coverage
A non-owner insurance policy usually provides minimum liability coverage. In the state of Illinois, this is:
- $25,000 of coverage for the death or injury of one person in an accident.
- $50,000 of coverage for the death or injury of two or more people in an accident.
- $20,000 of coverage for damage to another person's property.
A non-owner insurance policy can also include additional coverage. You may amend your policy to include:
- Personal injury protection or medical payments coverage: This coverage pays for your injuries after an accident. It applies regardless of who's at fault. While the insurance policy of the driver at fault may pay for some of your injuries, this coverage steps in if your medical costs exceed what that driver's plan will pay. This is also a valuable plan to have if you're at fault, as you'll be responsible for your medical expenses.
- Uninsured or underinsured motorist coverage: This coverage will pay for your injuries in an accident that's caused by the other driver if that driver isn't properly insured. In most cases, the insurance of the driver at fault will pay for your injuries. However, an uninsured driver can leave you with a hefty stack of medical bills. This insurance helps protect you.
Who Needs Non-Owner Car Insurance?
There are a few notable instances where non-owner car insurance is a valuable investment. Here are some examples of drivers who should consider a non-owner insurance policy.
Drivers Covering a Gap in Car Ownership
If you've previously owned a vehicle and plan to do so again, you may not want to allow your car insurance to lapse. When insurance companies evaluate you for coverage, one of the things they consider is whether you've maintained steady insurance coverage over the years. If there's been a gap, you may face higher insurance premiums when you sign up for a new policy.
If you anticipate a brief period between vehicles, it's probably not worth the rate increase to cancel your insurance. Even if you plan to be without a car for a few years, you may want to keep your insurance current. You'll need to compare the savings you enjoy by going without car insurance to the potential rate increase you'll face in the future.
Drivers Who Rent Vehicles Often
You can typically purchase liability coverage provided by the rental company when you rent a vehicle. In the state of Illinois, rental companies are required by law to provide the minimum coverage. This varies by state, however, so you should always read the fine print and make sure you understand your coverage options when traveling.
If you rent vehicles often, it may be cheaper to carry your own liability coverage. In some cases, this will help you avoid the rental company's insurance fee.
Individuals Who Need SR22 Coverage
If you're required by the state to carry SR22 insurance coverage but you don't own a vehicle, a non-owner insurance policy is the only way you can fulfill this requirement. In some cases, you will not be able to get your license reinstated without it. Therefore, you'll need to invest in this type of insurance if you intend to drive at all.
The law in Illinois requires drivers to cover their vehicles with specific minimum amounts of liability insurance to protect others on the road from the risk of financial catastrophe. It recognizes that every time you get behind the wheel, you have the chance of harming other people or damaging their vehicles or other property.
Illinois law requires the following two forms of liability insurance:
- Bodily injury, which pays damages in accidents that involve physical injuries to others, including passengers in your vehicle. You must have a minimum of $25,000 of coverage for the injury or death of one person and $50,000 for the injury or death of multiple people. This insurance does not cover your own injuries.
- Property damage, which pays damages for harm caused to another's property, such as the other driver's car or other items they own or carry. The minimum required in Illinois is $20,000.
American Auto Insurance can provide you with both these types of insurance. In today's society, you may need more than these minimum amounts to cover the types of judgments that can occur following accidents. Our agents can help assess the level of risk you face on the road and make recommendations, based on data, for the proper amounts to carry above just the minimum level.
What is Non-Owner SR22 Insurance?
SR22 insurance isn't a specific type of insurance plan. Rather, this is a certificate of financial responsibility that proves you are carrying the minimum insurance coverage required by the state. In certain instances, the state may issue a court order mandating that you file an SR22 certificate. You may receive notice that you need to file an SR22 if:
- You're found guilty of a DUI or other serious moving violation.
- You've received several serious traffic violations in a short period of time.
- You were convicted of driving while uninsured.
- Your driver's license has been suspended and you want to reinstate it.
If you're required to carry SR22 insurance, you must have a car insurance plan of some type. This is the only way to obtain the appropriate SR22 certificate for the state. If you don't own a vehicle of your own, a non-owner insurance policy is your only option.
Property damage liability insurance protects you if your car damages someone else’s property. It also provides you with a legal defense if someone files a lawsuit against you.
This covers losses that aren’t the result of a collision. For example, comprehensive insurance covers damage to your car if it is stolen, damaged by flood or fire.
Have Additional Questions?
American Auto Insurance can help.
If you want to know more about cheap Illinois SR-22 coverage, contact American Auto Insurance today.
We’ll help you get back on the road legally and safely.
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