What if you don’t own a car, but you sometimes drive one? Maybe you borrow a friend’s car, or you rent a vehicle for work trips. In those cases, non-owner car insurance could be a good idea.
This type of insurance covers you — the driver — if you cause an accident while driving a car you don’t own. North Carolina allows non-owner policies, and the average cost in NC is slightly higher than the national average.
This guide provides a comprehensive overview of non-owner liability insurance in NC, so you can decide if it’s right for you.
Understanding Non-Owner Car Insurance
What if you don’t own a car, but you drive every now and then? If you’re borrowing a friend’s car, renting a car, or driving a company car, you might want to think about getting non-owner car insurance.
What is Non-Owner Car Insurance?
Non-owner car insurance provides liability coverage when you’re driving a car you don’t own. It’s designed for people who frequently borrow or rent cars.
The policy covers damages or injuries you cause to other people, up to the policy limits. It acts as secondary coverage, so it kicks in if the car owner’s insurance policy isn’t enough to cover the full costs. The car owner’s insurance always pays first.
Who Needs Non-Owner Car Insurance?
You might need non-owner car insurance if:
- You regularly borrow cars from friends or family.
- You frequently rent cars for personal use.
- You’re required to file an SR-22 or FR-44 form because of past driving infractions.
- You’ve sold your car, but you need coverage until you buy a new one.
Coverage details and limitations
Before you buy a non-owner car insurance policy, it’s a good idea to get a handle on what these policies cover and what they don’t.
What non-owner car insurance covers
- Bodily injury liability. If you’re at fault in an accident, this coverage can help pay costs associated with injuries to the other driver or their passengers.
- Property damage liability. This helps cover damages to other people’s property, such as their vehicle or fence.
- Uninsured/underinsured motorist protection. If an uninsured or underinsured driver hits you, this coverage can help pay for your injuries.
What non-owner car insurance doesn’t cover
- Damage to the vehicle you’re driving. Non-owner insurance typically doesn’t pay to repair the car you’re borrowing or renting.
- Your injuries. Generally, the policyholder’s injuries are not covered.
- Comprehensive and collision. These types of coverage are excluded from non-owner policies.
How much does non-owner car insurance cost in North Carolina?
Several things impact the price of a non-owner policy in North Carolina:
- Your driving history
- Your age and experience behind the wheel
- The coverage options and limits you choose
- Exactly where you live in North Carolina
On average, non-owner car insurance in North Carolina costs around $52 per month. That’s about 21% higher than the national average of $43.
Even with that difference, non-owner insurance is usually cheaper than traditional car insurance, especially if you only drive occasionally. You can expect to pay somewhere between $200 and $500 each year.
Finding the Cheapest Non-Owner Car Insurance in NC
So, you need non-owner car insurance in North Carolina, and you want the best deal, right? Here’s the lowdown:
- Nationwide is the Cheapest: As of right now, Nationwide seems to have the lowest rates in NC, around $22 a month.
How to Shop Around for the Best Deal:
- Compare Quotes: Don’t just go with the first company you find. Get quotes from several different insurance providers.
- Check Direct Insurers: Some companies only sell insurance directly to you, cutting out the middleman. These can sometimes offer better prices.
What Coverage Do You Need in NC? North Carolina has minimum insurance requirements. You’ll need at least:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
You’ll also need the same minimums for uninsured motorist coverage.
Non-Owner Insurance vs. Rental Car Insurance
What’s the difference between non-owner car insurance and rental car insurance?
- Non-owner insurance protects you whenever you drive someone else’s car. Rental car insurance only covers you when you’re driving a rental.
- Non-owner insurance provides continuous coverage, while rental car insurance only lasts for the rental period.
If you rent or borrow cars often, non-owner insurance is probably the better choice. If you only rent occasionally, rental car insurance might work for you.
Finally, be careful about “one-day insurance” offers, which may not be legitimate.
In Closing
Non-owner car insurance in North Carolina provides important liability coverage when you’re driving a vehicle you don’t own. For some people, it can be a smart, cost-effective choice.
To decide whether it’s right for you, carefully consider your individual needs and driving habits. If you think it might be a good fit, shop around and compare quotes from several different insurance companies to find the best possible deal.
By making an informed decision, you can ensure you have the right coverage to protect yourself on North Carolina roads.