Non Owner Car Insurance North Carolina
In the state of North Carolina, all potential drivers are required to carry liability car insurance or non owner car insurance NC to obtain a state driver’s license. This must be obtained before a North Carolina driver’s license can be issued.
Who Needs a Non-Owner NC Insurance Policy?
Even if you do not own your own vehicle, you must purchase North Carolina Non-Owner Insurance if you:
- Have recently moved to North Carolina
- Are applying, for the first time, for your NC driver’s license
- Have a DWI/ DUI
- A court requires you to purchase it after committing other serious traffic violations
Additional Reasons You May Need a Non-Owner Insurance Policy
- You frequently borrow someone else’s car and they live outside of your home. This may be the case if you are taking care of someone or often drive a friend’s car to get back and forth to work or school.
- You’ve sold your car and haven’t purchased a new one yet. Purchasing non owner car insurance NC will help ensure there is no lapse in your insurance coverage. If your coverage lapses, you may be required to pay a higher premium when you do purchase your new car.
- You participate in a car-sharing service. If you take advantage of car-sharing services, such as Maven, Car2Go, or Zipcar, part of your membership may include liability and damage coverage. However, it is very important to know exactly how much protection you have. You may benefit from purchasing additional coverage.
Proof of Non-Owner Insurance
When you apply for your North Carolina driver’s license, you will need to present a DL123 form. This form is supplied by your insurance company and certifies that you have a policy in effect. It will include your non owner car insurance NC policy number, the start date, and the expiration date. This is not the actual insurance policy. From the date of issue, a Form DL123 is only valid for 30 days. If you exceed the 30-day period, you will need to obtain a new DL123 before your driver’s license will be issued.
Liability Insurance Limits for Non-Owner Insurance Policies
The state of North Carolina requires liability limits of $30,000 per person, $60,000 per accident, and $25,000 for property damage for both non-owners and owners. This is typically stated as 30/60/25. It is highly recommended that you exceed liability limits for the best financial protection.
What is Covered by Non-Owner Automobile Insurance?
If you frequently drive a vehicle that you do not own, non owner car insurance NC is ideal for you. This may be the case if you drive a work vehicle or regularly borrow someone else’s car. In either case, your non-owner insurance policy would cover injuries and damage, up to the limit, if you are in an accident. Non-owner car insurance is intended to act as a supplement to the vehicle’s existing insurance and provide extra coverage in the event of an accident or crash. It also provides coverage, if you get into an accident while driving a vehicle you do not own.
Typically, non-owner insurance policies only offer minimum coverage. It will include property damage and bodily injury liability coverage if you are driving a car that you do not own, but would otherwise have a traditional car insurance policy on. In most cases, you will not be required to pay a deductible if you file a claim.
What is Not Covered by Non-Owner Car Insurance Policies
Non-owner insurance policies do not cover:
- Comprehensive / collision
- Any vehicle registered in the policy holder’s name
- Any vehicle that resides at the policy holder’s address
- Rental cars
- Any other person, including spouse and children
- Rental reimbursement
- Towing reimbursement
How Does Non-Owner Insurance Work?
If you are driving someone else’s car and are involved in an accident, the owner’s insurance will pay out first. If this amount is not enough to cover the full damages, your non-owner policy will be used. It’s important to understand that collision coverage is not included with non owner car insurance NC. This means that vehicle repairs will not be covered. However, it will cover the other vehicle or property that you hit.
If you are deemed to be at fault for an accident that caused injury to another person, bodily injury liability insurance will help pay some of his/ her lost wages and medical expenses. It will also help pay for legal fees in you end up in court. Property damage liability insurance covers any damage you may have caused to another vehicle or piece of property.
Some insurance companies will allow you to add uninsured/ under-insured motorist bodily insurance coverage and medical payments coverage. Again, you are not usually required to pay a deductible if you file a claim. If you are interested in adding this type of coverage, you should be sure to mention it when getting quotes.
You may be able to get a non-owner liability policy for rental vehicles. However, this is not always the case. If you will be driving a rental vehicle, make certain the vehicle will be covered before you drive it.
How Much Does Non-Owner Insurance Cost?
On average, the cost of a non-owner insurance policy is around $474, which is significantly less than you would pay for a standard insurance policy.
Purchasing Non-Owner Insurance
Numerous companies have non-owner insurance policies available, including Nationwide, State Farm, and Geico. Non-owner insurance policy quotes are not also available online, so you may need to contact the company directly for a quote.
Before placing your call, you’ll want to have certain information handy. This includes:
- Your driver’s license number and the state of issue
- Your driving history, including accident history, details of any past license suspensions, and traffic tickets
- Your credit or debit card to get your policy started
When You Don’t Need a Non-Owner Insurance Policy
If you are the owner of a car, you do not need a non-owner insurance policy. You will need a traditional car insurance policy that provides comprehensive coverage to ensure you are protected in the event of an accident.