What is a non owner auto insurance policy?
A nonowner SR22 insurance policy is a type of coverage that is specifically designed for drivers who do not own a vehicle. This type of policy provides liability coverage in the event that you are in an accident while driving someone else’s car. It is important to note that this policy does not provide coverage for your own vehicle, and it only applies to certain cars that you are driving.
If you have to get a nonowner’s policy, you probably have a lot of questions. To help make things easier, we’ve put together this complete guide. Let us walk you through everything you need to k now, including how to get the best tips.
Read on to learn all about SR22 non owner insurance.
Why Do I Need a Policy if I Don’t Have a Car?
You don’t own a car, but do you need insurance? It might seem like a puzzling situation to find yourself in. Let us help break things down, so they make more sense.
SR22 insurance policies for nonowners are a special type of liability coverage. They exist to satisfy the requirements of your state’s DMV if you’re required to carry one.
If you’re not sure whether or not you need an SR22, here are some common scenarios in which you might:
You were driving without insurance, and now your state requires it. Or perhaps you were in an at-fault accident, and your insurance company dropped you as a result.
Did you receive a conviction for a DUI/DWI? That will trigger a SR22 filing mandate. Finally, if your license undergoes suspension or revocation for another reason related to driving, you’ll need this policy.
An SR22 is simply a certificate of insurance that proves you have the minimum amount of car insurance required by your state. It’s sometimes called a “financial responsibility filing” or an “SR-22 bond.” Your insurance company will file this document with your state’s DMV on your behalf.
Once the DMV has received confirmation that you have an active policy, they will lift any restrictions that were placed on your license. If your policy lapses for any reason, the DMV will be notified, and your license could be suspended again.
If you live in one of the states that require SR22 insurance for nonowners, you’ll need to find an insurance company that offers this type of coverage. Luckily, most insurers do.
Will My Employer Find Out About This?
Do employers find out if you receive a state mandate to obtain SR22 insurance?
The answer to this question is, unfortunately, not always black and white. In general, your employer is unlikely to find out about your SR22 insurance unless you tell them or unless it becomes relevant to your job.
For example, if you are a delivery driver and your SR22 is related to a DUI, your employer may eventually find out if they conduct a background check. However, if your SR22 is simply the result of personal driving, there isn’t any need for your employer to know.
How Non Owner Auto Insurance Policies Work
A non owner auto insurance works in much the same way as a regular sr22 non owner insurance policy. You have to purchase this type of coverage from a licensed insurance company, and you will need to maintain it for a set period of time. In most cases, you will have to maintain coverage for a period of three years.
Who Needs a Nonowner SR22 Policy?
There are over 250 million registered vehicles in the United States alone. Nonowner SR22 policies are mandatory for drivers who do not own a car but still need liability coverage.
It’s a type of policy is often required for drivers who have a conviction for a DUI or other alcohol-related offenses. It is also a requirement for drivers who have had their licenses suspended or revoked.
How Long Do You Need Coverage?
In most cases, you will need to maintain nonowner SR22 insurance coverage for 3 years. If you’re concerned you can’t maintain payments, reach out to the insurer.
Sometimes providers can arrange special late payment opportunities. You can also look into payment plans that allow for partial payments.
What Are the Consequences of Lapses in Coverage?
If you allow your nonowner SR22 insurance policy to lapse, trouble will follow. You could face significant penalties, including fines and driver’s license suspension.
In some cases, you may even have to install an ignition interlock device in your car. That’s why is important to keep your coverage up-to-date and in force at all times.
Does the Coverage Apply to All Cars You Drive?
Does the nonowner’s coverage take care of every car you drive? No, the coverage under a non owner auto insurance policy only applies to certain cars that you are driving. This includes any car that you are renting or borrowing, as well as any car that you are driving for business purposes.
Broker vs. Direct Provider
When it comes to nonowner SR22 insurance, there are two main types of providers: brokers and direct providers. A broker is an intermediary who works with multiple insurance companies to find the best rates for their clients.
A direct provider is an insurance company that offers nonowner SR22 insurance policies directly to consumers. Overall, brokers give you the most choices.
Broker:
The main advantage of using a broker is that they can help you find the best rates from multiple insurance companies. Brokers have access to a wide range of insurers, so they can shop around on your behalf to find the lowest rate possible.
Direct Provider:
The main advantage of using a direct provider is that you will be dealing with the company directly. This means there is no middleman involved. The downside of using a direct provider is that you may have to sacrifice some customer service.
Non Owner Insurance Cost Factors
Now let’s talk price. How much does non owner SR22 insurance cost?
The answer to this question isn’t as simple as it may seem. That’s because there are a number of different factors that can affect the cost of your policy.
Some of the biggest factors that will influence the price you pay for nonowner SR22 insurance include:
The state you live in: Rates can vary significantly from one state to another. States with high accident occurrences, like California, will always have high insurance rates.
Your driving record: If you have a history of accidents or violations, you can expect to pay more for coverage.
The type of vehicle you drive: If you’re driving a high-end car, you’ll likely pay more for coverage than someone driving a less expensive vehicle.
The amount of coverage you need: The more coverage you need, the more you can expect to pay for your policy.
Your deductible: A higher deductible will usually result in a lower premium.
You’ll also want to prepare to pay filing fees.
Filing Fees
In addition to the cost of your nonowner SR22 insurance policy, you may also have to pay a filing fee. This fee is typically between $25 and $50, and it’s paid to the DMV when you file your SR22 form.
Navigate the Quoting Process
How does the quoting process work for a nonowner policy? The first step is to find insurers that offer this type of coverage.
Once you have a list of potential insurers, you’ll need to provide some basic information about yourself, such as your name, address, and date of birth. You’ll also need to let the insurer know whether or not you’ve had any prior accidents or violations.
After you’ve submitted this information, you’ll receive a quote from each insurer. This quote will include the price of the policy as well as the terms and conditions. Be sure to read through the quote carefully to make sure you understand everything before making a decision.
What If I Have More Questions?
If you still have questions about nonowner SR22 insurance, we recommend speaking to an insurance agent or broker. They will be able to answer any remaining questions you have and help you choose the right policy for your needs.
Find the Lowest Rate Possible
No one wants to overpay for insurance, so it’s important to shop around and compare rates from multiple providers before buying a policy. The best way to do this is by getting quotes online. Instant quotes help you easily compare rates and find the best deal.
Types of Non Owner Insurance Discounts
You can do several things to get the lowest rate possible on your sr22 non owner insurance policy. One of the best ways is to shop around and compare quotes from different providers.
You can also look for discounts available to you. For instance, there are good student discounts or discounts for completing a defensive driving course.
Receive an Insurance Consultation
Are you ready to get your free non-owner SR-22 insurance quote? Pacific Sun Insurance Services has decades of expertise in the insurance industry. We pride ourselves on providing clients with the best rates and top coverages.
Don’t let SR-22 certificates stress you out. We can help make things easy from start to finish.
Are you ready to secure your non owner auto insurance policy? Reach out to us today for your free consultation. You’ll be glad you did!
