The Ins and Outs of Non Owner Car Insurance in Arizona

Non owner car insurance can be a great option for Arizona residents who need liability coverage when driving a vehicle they don’t own. This type of insurance provides protection when you drive rental cars, borrowed vehicles, or are between cars. It may also be required if you need to file an SR-22 form to reinstate your license.

Let’s take a closer look at everything you need to know about getting non owner car insurance in Arizona

What Exactly is Non Owner Car Insurance?

Non owner car insurance provides liability coverage when you drive a car that you don’t own. It will pay for injuries or property damage to others when you are at fault in an accident. But it does not cover damage to the vehicle you are driving.

Non owner policies only include liability insurance not comprehensive or collision coverage. Liability insurance has three components

• Bodily injury liability: Covers injuries to other people caused by an at-fault accident up to the policy limits. In Arizona, the minimum per person limit is $25,000.

• Property damage liability: Covers damage to another person’s vehicle or property up to the policy limits. Arizona requires a minimum of $15,000 in coverage.

• Uninsured/underinsured motorist coverage: Protects you if you’re hit by a driver who doesn’t have sufficient insurance. This is optional but recommended.

Since you don’t own the car, non owner insurance does not pay for repairs or replacements costs for damage to the vehicle you drive. Make sure the car owner has their own coverage for this.

Non owner car insurance only covers you when driving a car you don’t own. Any other drivers must obtain their own insurance. Spouses or family members will not be covered under your policy.

Who Needs Non Owner Car Insurance in Arizona?

Non owner car insurance can be useful for several situations:

• You frequently borrow vehicles from friends or family members. Non owner insurance provides liability protection without having to pay for a full policy.

• You occasionally rent cars for trips and vacations. Non owner insurance can help avoid paying expensive rental company fees.

• You are between cars after selling your old vehicle or your car is in the shop for repairs. Maintaining coverage prevents rate increases down the road.

• Your license was suspended and you need to file an SR-22 form to reinstate it. Non owner insurance meets the requirements.

• You can’t afford full coverage but need to comply with Arizona’s minimum liability insurance law when driving.

As you can see, non owner car insurance fills an important gap for many drivers in Arizona.

Cost of Non Owner Car Insurance in Arizona

On average, non owner car insurance costs around $44 per month in Arizona. This is slightly higher than the national average of $43 per month.

However, your personal premium can vary significantly based on factors like:

• Age: Younger drivers pay higher rates than older, more experienced drivers.

• Driving record: Speeding tickets, accidents, or DUIs will increase your costs.

• Credit score: Insurers often use credit-based insurance scores to set rates. Poor credit leads to higher premiums.

• Location: Insurance rates are higher in cities than rural areas. Your neighborhood crime level is also a factor.

• Policy limits: Lower liability coverage limits reduce premiums but leave you more exposed financially.

• Discounts: Taking defensive driver courses or bundling home insurance may lower your costs.

To find the cheapest non owner insurance in Arizona, it helps to compare quotes from multiple insurers. Let’s look at some top options.

Cheapest Non Owner Car Insurance Companies in Arizona

Our analysis found these insurers provide the most affordable non owner car insurance for Arizona drivers:

Drivers with Clean Records

• Auto-Owners: $28 per month
• Travelers: $34 per month
• State Farm: $35 per month

Drivers with Violations

• State Farm: $40 per month
• Travelers: $40 per month
• Auto-Owners: $41 per month

As you can see, rates are around $12 higher per month if you have violations on your driving record. Careful driving and avoiding tickets helps keep insurance costs down.

USAA is another inexpensive option but only for military members and their families. Credit unions and professional associations may also offer discounted non owner policies.

To find the best value, compare rates from at least three leading insurers. Also look at the amount of liability coverage provided at each price point.

Factors That Affect Your Non Owner Insurance Costs

Insurance companies weigh several criteria when pricing non owner policies for individuals. Key factors that impact your rates include:

• Age: Teen drivers pay the highest rates, with premiums gradually decreasing until around age 25 when drivers are considered lower risk.

• Driving record: Expect to pay more if you have recent accidents, speeding tickets, DUIs or a suspended license. Maintaining a clean record saves you money.

• Credit-based insurance score: Arizona allows insurers to use your credit information to predict your likelihood of making claims. People with excellent credit tend to have lower rates.

• ZIP code: Premiums are higher in urban areas than rural due to increased accident risk and costlier insurance claims.

• Vehicle type: Rates are based on the car’s make, model, age and safety ratings since this determines repair costs.

• Coverage limits: Lower liability coverage limits reduce your premiums but increase financial exposure if you cause an accident. Consider both price and adequate protection.

• Insurance company: Each insurer applies its own formulas to determine risk and set rates. Compare quotes to find the best price.

• Discounts: Take defensive driving classes or bundle home insurance to potentially lower your premium.

Understanding these key rating factors helps you minimize costs while getting adequate coverage. Comparing quotes is the best way to find affordable non owner insurance tailored to your situation.

Limits of Non Owner Car Insurance in Arizona

While non owner insurance serves an important purpose, it does have some drawbacks to consider:

• Only provides liability coverage, not comprehensive or collision insurance.

• Rental car liability coverage may need to be added separately.

• Typically excludes other family members from driving the car.

• Does not earn you any discounts for being a long term customer with an insurer.

• May be viewed negatively by insurance companies if you later apply for a regular policy.

• Usually comes with lower liability limits than a standard auto policy.

• Needs to be renewed monthly or periodically, unlike annual policies.

• May be more complicated to obtain if you have a poor driving record.

For these reasons, non owner insurance works best as a temporary solution. If you regularly drive a vehicle you own, purchasing a standard auto insurance policy is typically the better option.

How To Purchase Non Owner Car Insurance in Arizona

The process of getting non owner insurance in Arizona is fairly straightforward:

• Determine your coverage needs based on how often you drive other cars and your budget. Include uninsured motorist coverage if possible.

• Compare quotes online from leading insurers like State Farm, Allstate, GEICO, and Progressive. Rates can vary over $100 between companies.

• Provide details on your age, driving history, and vehicle use. Disclose any accidents or violations to avoid issues later.

• Select desired liability limits. Experts recommend limits of at least $50,000 bodily injury per person and $100,000 per accident.

• Add rental car coverage if you want protection when using rental vehicles. This is optional but recommended.

• Consider bundling home or renters insurance with the same provider for multi-policy discounts.

• Pay your premium using auto-pay to ensure there are no coverage lapses. Non owner policies must be renewed frequently to stay active.

• Keep your policy updated if you move, change vehicles, or need to update your driving record. Notification prevents problems down the road.

Following these simple steps helps ensure you get the protection of non owner insurance when you need it. Compare options to find the best rate.

Alternatives to Traditional Non Owner Car Insurance

Besides a standard non owner policy from an auto insurer, Arizona drivers can also consider these options:

• Rental car company insurance: Many rental agencies provide liability insurance for around $10-15 per day. Coverage applies while operating the rental vehicle.

• Ridesharing coverage: Uber and Lyft provide liability coverage while you have passengers or are on the way to pick them up. This protects vehicles you use for ridesharing services.

• Your own umbrella insurance: A personal umbrella policy can provide additional liability coverage above your car insurance limits for more protection.

• Spouse or family member’s policy: Some insurers extend permissive use coverage to allow you to drive a family member’s car. This varies by policy so check with the insurance company.

• Credit card rental car coverage: Many credit cards include rental car collision damage waiver protection when you rent using the card. However, liability coverage is still recommende