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Written by: Shelly Campbell

Category: Personal Auto

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A Non-owner Auto Insurance Policy in Oregon is a contract that provides secondary coverage for Bodily Injury, Property Damage, and Uninsured Motorist Bodily Injury Liability in the event of an accident, the same as a regular auto policy. It also provides Personal Injury Protection (PIP) for the named insured only and secondarily to the policy covering the non-owned vehicle you drive. There is no coverage available for Uninsured Motorist Property Damage, Comprehensive, or Collision coverages, as these would only be available for an owned automobile.

A significant point to remember is that non-owner car insurance policies do not cover the vehicle you are driving. Let me repeat that. A Non-owner Policy only covers other cars and accident victims, not the car the operator is driving. In fact, it does not cover the vehicle you are driving at all, nor under any circumstances, such as theft, towing, or rental reimbursement. The vehicle’s registered owner is the responsible party and must maintain at least minimum liability on the car.

Let’s look at an example. You borrow my car, have a Non-owner Policy—or even a regular policy, for that matter—and get into an accident. My insurance company will pay the charges for the accident, not yours. OK, let’s say the accident you caused in my car was your fault, and the damage costs more to fix than my company will pay. Only then does your Non-owner or regular policy kick in and begin to pay. These payments have limitations, such as whether you live in my household and regularly use the vehicle. But generally, that is how it works.

So why would you need a Non-owner Auto Insurance Policy, then?  You might need one if the Oregon DMV requires you to file an SR22. People who do not have a vehicle registered in their name are eligible for a Non-owner Auto Insurance Policy. If you have a car registered in your name, you do not qualify for this type of policy. If you do not own a car but drive for work and need an SR22 for a valid driver’s license, you would purchase a Non-owner Policy with SR22.

Be careful. A Non-owner Policy does not cover a vehicle owned or registered to you. They do not make it legal to drive an uninsured vehicle on the roads of Oregon. And even if you just bought a car today and didn’t have time to add it to your policy, it is not covered. Call us immediately if you have a Non-owner Auto Insurance Policy and purchase a car. We will convert your existing policy to a regular one by adding the vehicle without starting a whole new policy. Please call us before you buy a car with the vehicle identification number (VIN), and we’ll be happy to quote how much it will cost to add a vehicle to your Non-owner Policy.