I always borrow my neighbors’ car here in Houston. Now, my neighbor told me that it is alright as long as I get myself an non owners auto insurance policy. Is my neighbor joking about this or is it true that I can get an auto insurance even though I don’t own the car. If there is an insurance policy like that and what are the advantages?

Harry

Houston TX

Yes there is an insurance policy like that. And it will make your neighbor more comfortable lending you his car if you own this type of insurance. It is called non-owner auto insurance. This type of auto insurance policy will cover damage expense done on the vehicle that you don’t own if you are the one behind the wheel and you accidentally collide with something.:)

But let me make this clear to you. Although if you accidentally damage the vehicle of your neighbor, your neighbors auto insurance policy will take effect. Your non-auto insurance policy will only take its role if your neighbors’ auto insurance policy cannot cover the damage that is done on the vehicle. For example, if the estimated cost of the damage is $20,000 and your neighbor or the owner of the car has a liability limit of $30,000, your non owners’ policy will not be touched. But if your neighbors’ liability limit is only $10,000 then your policy will take care of the remaining deficit.

Another advantage is if you rent a vehicle. Most rental companies also sell car insurance policies that cover throughout the renting period. This may not cost much, but if you are renting too often, it will surely save you money if you have a non-owner auto insurance policy already in place. Notice if you rent a vehicle too often and always pay additional cost for car insurance, try to sum up the additional auto insurance cost and try to compare if you can save if you had a non-owner auto insurance policy.

As with any auto insurance policy, you should ask for discounts and raise your deductible amount to the highest level possible in order to save money on your premiums. Also, your credit history and credit score will be looked at to determine your rate.

A: Car insurance doesn’t always fall on the shoulders of the car owner as a responsibility, and so in many cases someone will need to get non owner policy when they don’t own a car but drive someone else’s. Even though most of the time if you drive another person’s car, their insurance will cover you, you have the burden of proof that you are protected on the road when you go to get your driver’s license reinstated.

You may even own your own vehicle, but need a non owner insurance for the car your drive at work. Once you get a non owner policy, your rates will go up somewhat. Non owner policies are priced higher because the car in the equation is an unknown quantity. You could be driving a Porsche or a Honda, the car insurance company doesn’t know. You are also only able to get liability coverage. In many cases you can still get a discount, so ask and see what is available to you.

Of course you mentioned SR22, which is probably for a DUI or suspended license charge? You will have a much harder time finding good rates with that! You are like a sub-prime home loan…nobody wants to insure you, so you will have to call around but I bet you will only find a handful of carriers that are willing to take you…sorry to say.

I mention these a lot on this site, but will share them again. These are just a few of the most popular discounts.

1. Military personnel both active and retired

2. Good grade students – even just being a college student in some cases will give a discount

3. Union membership and bank member affiliations

4. Safe drivers with no claims in last 7 years

5. Defensive driving school attendance – although this doesn’t seem to help much anymore, but might be worth your time and expense

6. Clean credit history – used by many carriers to determine payment risk and payment timeliness