How to Find the Best Auto Insurance if You Don’t Own a Car

Many of the best auto insurance companies for people who don’t own a car include some of the most popular brands on the market. However, before you buy insurance for your vehicle, you should be aware of the legal requirements as well as what your bank would like you to have. In addition, to get the lowest car insurance rates, you should lower your risk of filing a claim as much as possible.

If you’re looking for quotes for the best auto insurance companies for people who don’t own a car, enter your ZIP code into our free quote tool to see what you could pay today.

What companies offer the best non-owner auto insurance?

If you’ve recently got a car under a lease, you likely can’t wait to get out on the road. However, there are requirements you’ll be required to meet before you put your car on the road. Even if the vehicle isn’t in your name, you’ll need to make sure that you’re able to get the minimum amount of insurance that’s required in your state.

Since most insurance companies require that you prove you own the car, this can become a problem, as your creditor will own the vehicle instead of you. To this end, you’ll need to find an insurance company that’s willing to insure a car that isn’t in your name.

Some of the companies and policies you should look for include:

• The General non-owner auto insurance
• Progressive non-owner auto insurance
• AAA non-owner auto insurance

These companies will be happy to give you an auto insurance policy on your vehicle. Another example of a company that will provide auto insurance rates is non-owner auto insurance through Geico.

When do I need non-owner auto insurance?

If you own a vehicle, you will need to have the minimum auto insurance coverage for your car. If you get into an accident and you don’t have insurance, you’ll be held financially responsible for the cost of your repairs. To avoid paying out thousands of dollars, ensure you have the right insurance.

Not only that, your car lender will want to make sure that you have the appropriate auto insurance before they finance the car. This is because the vehicle will technically still belong to the lender until you can pay it off.

Before you’re able to drive off the lot, the seller will want to make sure you’re insured. This can also benefit you as once the car leaves the lot, it immediately begins to decrease in value. Also, if your vehicle isn’t under warranty, you’ll be forced to pay for any repairs that aren’t covered under your warranty.

The average cost for repairs can cost between $50 and $1,500 and can be a considerable cost on top of a recently purchased car. Having insurance on the vehicle will ensure you only have to pay your deductible when your insurance company takes over.

How much does non-owner auto insurance cost?

According to the Insurance Information Institute, the average cost of auto insurance is around $1,056.55 per year. This comes out to approximately $88 a month for auto insurance coverage. Because it is a required additional cost, you should be prepared to pay at least the first month’s premiums on your car.

It would help if you also were prepared to pay additional costs like any state fees or other charges. But, again, discussing what you’ll have to pay with your insurer will help guarantee that you’re prepared to get the vehicle.

Do I need auto insurance if I don’t own the car?

In some cases, you may be driving a car that isn’t under your name. If you’ve gotten a loan or other financing for your vehicle, it will still need to be insured under the driver’s name. To drive a car on the road, it will need to meet the following requirements:

• The minimum amount of auto insurance
• Registered in your state
• The driver has a proper license

If you can make the financial commitment to insure your car and get the proper paperwork, you’ll be able to get out on the road. However, if you don’t meet all the requirements to be on the road, you’ll face legal action when you’re inevitably pulled over.

When can I find temporary non-owner auto insurance?

While it’s not required, you can temporarily insure your car for the amount your bank requires. However, since your bank will often require full coverage, you might not need that much when paying off the vehicle.

Full coverage auto insurance includes:

• Liability – Covers any legal and medical costs when you hurt someone or damage property
• Comprehensive – Covers damages done to your vehicle by incidents such as theft, vandalism, or severe weather damage
• Collision – Covers your injuries and damages when you get into an accident involving another vehicle

Outside of the traditionally required liability, the insurance company will want to make sure that it can make its money back on the vehicle if something happens.

Once you finish paying off your loan, you can lower your auto insurance as much as you want. However, it will still need to meet the minimum liability coverage required in your state. In this case, your auto insurance will be temporary because you’ll only have to pay for full range for the length of the loan.

What’s the best way to apply for non-owner auto insurance?

You can apply for a non-owner auto insurance policy the same way you would for any other auto insurance program. However, you’ll need to ensure that you have all the proper paperwork and ability to pay for the coverage when you apply for it. In addition, because your auto insurance will begin immediately, you’ll need to make sure that you’ve paid for any coverage you need upfront.

Some of the information you should have prepared when you apply includes:

• Your SSN/ITIN and Driver’s License to identify yourself
• Your car’s make, model, and Vehicle Identification Number (VIN)
• At least the first month’s premium

If you’re going to apply for auto insurance, you should make sure that you’re as prepared as you can be. Since you’ll need auto insurance before you ever drive a car off the lot, being prepared ahead of time will ensure that you can get the coverage as soon as possible.

Some insurance companies will even allow you to input your personal information ahead of time and let you finish the application when you know what kind of vehicle you’ll be getting.

How do companies determine auto insurance rates?

When you apply for an auto insurance policy, the insurance company will determine the risk you pose to pay out a large sum of money. The higher the chance you’ll get in an accident and file a claim, the more the insurance company will charge you each pay period.

This is called the underwriting process, and it involves looking at your past payments, driving record, and other factors to determine your risk. Some of the areas that an auto insurance company will underwrite you for include:

• Your vehicle – If your car has a higher chance of being stolen or vandalized, you’ll have to pay more to cover that risk.
• Driving history – If you have been in a major accident or have received multiple tickets, you can expect your rates to go up.
• Credit History – If you haven’t been able to pay your bills on time in the past, some insurers might be more hesitant about giving you cheaper rates,

There are some instances when you may find it hard to get auto insurance at all. For example, if your insurance company sees that your car has suffered repeated damage, you’ll have a much harder time getting insurance coverage. This is why it is imperative that you drive with caution anytime you are on the road.

What’s the best way to get lower auto insurance rates?

If you’re worried about how much you’ll have to pay for auto insurance, you should know what causes your rates to be so high. There are multiple things you can do to get cheap auto insurance, including:

• Driving safely while on the road
• Paying all tickets on time
• Paying other bills on time
• Choose a car that is less likely to be stolen

If you can lower the risk you pose when filing a claim, your insurance company will be more willing to give you lower rates. The insurance company knows that lower rates mean a higher chance you’ll sign with that company, so it is already in a position to give you better rates.

Who doesn’t need non-owner auto insurance?

If you’re unsure about whether or not to buy non-owner auto insurance, you should figure out whether the car is in your name or not. For example, if you are financing the vehicle through a bank, the title will likely be under its name until you’ve paid it off. In that case, it would benefit you to have non-owner auto insurance.

If the car is registered under your name, you would not need non-owner auto insurance because you are the vehicle owner. So you would need to buy a standard auto insurance policy to get coverage.

Non-Owners Auto Insurance: The Bottom Line

If you’re considering the best auto insurance companies for people who don’t own a car, you need to ensure that the company offers the right insurance. Because your bank might request full coverage auto insurance, you may want to evaluate the cost from multiple insurers. If you’re a higher-risk driver, you’ll likely have to pay even more for auto insurance.

Are you looking for rates for the best auto insurance companies for people who don’t own a car? Enter your ZIP code into our free quote tool to see what you could pay today.