Non-owner car insurance (Portland: rental car, rentals, buy)

[xz2y]

As I am seriously looking at a move to Portland for retirement, and I mentioned the car-free living as one desirable feature of living in Portland in another thread, I have since learned about something called: "non-owner car insurance."

I thought perhaps some of the Portland residents may have run into this issue, since it is a city where one can live without a car.

As it turns out, not having a car or insurance is not viewed positively by the auto insurance industry (are we surprised?). If someone decides to get rid of their car for whatever reason, and therefore doesn't need car insurance, and then decides to later on get a car and insurance, perhaps 6 months or a year later, that "gap" is viewed negatively as a "risk" and your rates will jump exponentially, regardless of your driving record.

I was talking with a guy where I live (in Michigan) whose grandmother gave up her car, and then decided she needed one 6 months later and had 40+ years of perfect driving. That 6 month gap cost her a bundle in much higher rates. Turns out that if she had taken out a non-owner policy during the gap, her rates would not have increased when she got another car.

Below is an article on "non-owner car insurance" and some info about it.

1. Having non-owner car insurance (liability coverage only) when you don't own a car fills in any insurance gaps if you decide to get a car later on.

2. Non-owner car insurance kicks in if you rent a car and have an accident, over and above the rental agency's policy limits if you are sued, assuming your non-owner policy has rental car coverage. Damage to the rental car is not covered. Liability covers injuries to people in the other car.

3. Some states require non-owner car insurance if you want to get a driver's license (not sure which states).

https://www.nerdwallet.com/blog/insu...car-insurance/

Has anyone heard of non-owner car insurance or had any experience with it?

[texasdiver]

Never heard of it.

You might consider talking to an agent like State Farm who does all kinds of insurance (renters, homeowners, auto, life, etc.) and see if you can get something like this bundled cheaply to your homeowners or rental insurance.

[xz2y]

Originally Posted by texasdiver

Never heard of it.

You might consider talking to an agent like State Farm who does all kinds of insurance (renters, homeowners, auto, life, etc.) and see if you can get something like this bundled cheaply to your homeowners or rental insurance.

Yeah, that makes sense. I had never heard of it either. Probably only makes sense if a non-car owner does a lot of rentals, or is unsure of whether they want to ditch their car permanently.

It's unfortunate, however, that car insurance companies consider a gap as a risk and will charge more if you get insurance later on, since a lot of people don't have cars for many reasons: can't afford one, can't afford to fix the one they have, decide to go car-free, etc, all of which have nothing to do with their driving records.

[StealthRabbit]

Yes, you can buy from an insurance 'consolidator'

Which would NOT include 'State Farm'.

You should have ALL your policies quoted annually (which I do, but have not changed agents / companies for 36 yrs) ... When I LEFT State Farm.

By all means quote them (State Farm) (as with all major carriers). there will be a more 'perfect fit' of agents and policies based on your situation.

[psichick]

I never heard of that, but good to know! My bf was carless when we met and when he got a car, I always wondered why his insurance was so expensive (almost double mine, same age, better record than me, lol - no accidents/claims ever). Well, this makes sense now. Yikes.

[Jimrob1]

Originally Posted by xz2y

As I am seriously looking at a move to Portland for retirement, and I mentioned the car-free living as one desirable feature of living in Portland in another thread, I have since learned about something called: "non-owner car insurance."

I thought perhaps some of the Portland residents may have run into this issue, since it is a city where one can live without a car.

As it turns out, not having a car or insurance is not viewed positively by the auto insurance industry (are we surprised?). If someone decides to get rid of their car for whatever reason, and therefore doesn't need car insurance, and then decides to later on get a car and insurance, perhaps 6 months or a year later, that "gap" is viewed negatively as a "risk" and your rates will jump exponentially, regardless of your driving record.

I was talking with a guy where I live (in Michigan) whose grandmother gave up her car, and then decided she needed one 6 months later and had 40+ years of perfect driving. That 6 month gap cost her a bundle in much higher rates. Turns out that if she had taken out a non-owner policy during the gap, her rates would not have increased when she got another car.

Below is an article on "non-owner car insurance" and some info about it.

1. Having non-owner car insurance (liability coverage only) when you don't own a car fills in any insurance gaps if you decide to get a car later on.

2. Non-owner car insurance kicks in if you rent a car and have an accident, over and above the rental agency's policy limits if you are sued, assuming your non-owner policy has rental car coverage. Damage to the rental car is not covered. Liability covers injuries to people in the other car.

3. Some states require non-owner car insurance if you want to get a driver's license (not sure which states).

https://www.nerdwallet.com/blog/insu...car-insurance/

Has anyone heard of non-owner car insurance or had any experience with it?

I have heard of non-owner policies. I can't say I know much about them, other than this. North Carolina requires them. I believe it would be a liability policy only. So if you rent a car, you would still need to purchase the rental company insurance. Which is costly. I would ask the question on the NC forum, or you could look for posts on the subject. With so many moving to NC, I'm sure many on the forum are familiar with the policy.

Insurance companies are as far as I'm concerned, legally able to discriminate against us. That gap you speak of is very true. Insurance companies should not be allowed to get away with such a maneuver, and it should be deemed illegal.