Non-Owned Auto Insurance, also called named non-owners coverage or just non-owners for short, is a form of personal auto insurance for people who do not have a car and who need a DMV form number SR22 in order to get their license back.
Most commonly, Non-Owned Auto Insurance is used by persons who do not own a car and whose license is suspended requiring a DMV form number SR22 in order to reinstate it. This person probably had their license suspended as the result of a DUI, reckless driving, or had an accident without insurance or too many tickets or accidents. In order to reinstate the license, the DMV requires a form number SR22 which is issued by an insurance company stating that you have insurance and promising the DMV that the insurance company will notify the DMV if the person’s insurance cancels so that the DMV may then re-suspend the license.
If the person does not own a car or if the person’s current car insurance does not provide an SR22 then they would buy a Non-Owned Auto Insurance policy in order to get their license back. It usually costs less than a regular auto policy, by 50% or more.
If you know you are going to buy a car soon, have your broker check and see if the non-owner policy you are buying is still the best deal once you add the car on to it. The company that has the best price for your non-owner policy may not be the cheapest for the car when you get it. Maybe the non-owner policy is $300 per year with company X and when you add a car a month later it goes up to $1,200 per year. But maybe company Y is $400 per year for the non-owner policy, but you get your car a month after starting the policy and when you add it on to company Y’s policy, it’s only $600 per year.