Everything You Need to Know About Non-Owner Car Insurance in North Carolina

As a North Carolina resident who drives cars I don’t own, I used to worry about what would happen if I got into an accident. Would I be covered? Could I afford the repairs? What if I injured someone else? These questions kept me up at night.

That’s why I decided to do some research on non-owner car insurance in North Carolina. As it turns out, this type of insurance policy offers some great protections for people like me who frequently drive borrowed or rented cars. I wanted to share what I learned, in the hopes that it helps others understand this valuable coverage option.

What Exactly Is Non-Owner Car Insurance?

Non-owner car insurance provides liability coverage for when you drive a car that you don’t own, It will pay for injuries to other people and damage to their property if you cause an at-fault accident

Here’s an overview of what non-owner insurance typically includes

• Bodily injury liability – Covers medical bills if you injure someone in an accident
• Property damage liability – Covers repairs to another person’s car or property if you’re at fault
• Uninsured/underinsured motorist coverage – Protects you if the other driver has no insurance or not enough insurance
• Medical payments – Helps pay your own minor medical expenses after an accident

What non-owner insurance does NOT include is coverage for damage to the car itself that you’re driving. So if you wreck a friend’s car their insurance would have to cover the repairs not your non-owner policy.

Why Consider Non-Owner Car Insurance in North Carolina?

There are a few main reasons why non-owner car insurance can be a smart choice in North Carolina:

You Drive Borrowed Cars Frequently

If you drive your roommate’s car to run errands sometimes, or borrow your parents’ vehicle when you go visit them, non-owner insurance can give you liability protection during those times. This coverage follows you whenever you drive a car you don’t own.

You Rent Cars Occasionally

Rather than paying for supplemental liability coverage through the rental car company, a non-owner policy from your own insurer may be more affordable. Just make sure there are no gaps in coverage limits or exclusions.

You Sold Your Car but Will Buy Another Soon

Let’s say you just sold your old clunker but plan to purchase another vehicle in a few weeks. Maintaining continuous car insurance coverage will help you avoid higher rates when you insure your next car. Non-owner insurance prevents a lapse.

You Need to File an SR-22

An SR-22 is a form that provides proof of insurance to reinstate a suspended license. In North Carolina, non-owner SR-22 insurance can satisfy the requirements if you don’t own a car.

How Much Does Non-Owner Insurance Cost in North Carolina?

I compared quotes from major insurers to find the most affordable options for non-owner car insurance in North Carolina. Here are the average monthly costs I found:

• For drivers with clean records, the cheapest rates started around $22/month. Nationwide offered the lowest premiums.

• For drivers with violations like DUI, cheapest rates started around $34/month. Again, Nationwide had the most affordable coverage.

• On average, North Carolina drivers pay about $52/month for non-owner car insurance. That’s $9 more per month compared to the national average of $43/month.

As you can see, Nationwide seems to offer the most competitive pricing for North Carolina drivers needing non-owner insurance. However, make sure to get quotes from several insurers, since your personal factors like age, driving history and location can affect your premiums.

How Does My Driving Record Affect Costs?

One big factor that impacts your non-owner insurance rates is your driving history. In North Carolina, I found that on average:

• Drivers with clean records pay $12/month less than those with violations like DUI or at-fault accidents.

• For Nationwide, the cheapest insurer, clean drivers paid only $22/month versus $34/month for drivers with a violation.

The takeaway is that maintaining a clean driving record will likely result in lower insurance costs. But even if you have violations, non-owner insurance can still be affordable in North Carolina.

What Are North Carolina’s Insurance Requirements?

In North Carolina, you must meet these minimum liability coverage limits when driving any car, owned or non-owned:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Make sure any non-owner policy you’re considering meets or exceeds these requirements. Falling short of the state minimums can lead to big fines and license suspension.

How Can I Find the Best Non-Owner Insurance in NC?

As I compared options from top insurers, a few companies stood out as offering quality non-owner insurance in North Carolina:

Nationwide – My top pick due to low pricing and high customer satisfaction. Offers accident forgiveness and unique add-ons like identity theft protection.

Progressive – Competitive rates and options like custom parts/equipment coverage useful for modified cars.

GEICO – Known for affordability and convenience through mobile app and online tools.

To find the best fit for you, get quotes from these and other major insurers. Compare pricing and coverage options side-by-side. Reaching out to an independent insurance agent can also provide expert guidance.

Does Non-Owner Insurance Make Sense for Me?

Wondering if non-owner car insurance is the right choice for your situation? Here are some signs it may be a smart move:

✅ You frequently drive borrowed cars owned by others

✅ You only rent cars every so often

✅ You recently sold your car but are shopping for a new one

✅ Your license was suspended and you need to file an SR-22

Alternatively, if you own a car but are looking to cut costs, it may be better to explore a regular policy with just liability coverage. Non-owner insurance is intended for those who drive non-owned vehicles.

Can Non-Owner Insurance Save Me Money?

While non-owner insurance offers critical protections, it can also provide big savings compared to adding renters or borrowers to your regular policy.

For example, let’s say you pay $100/month for a full coverage policy on your own car. Adding rental car coverage could tack on an extra $15-$30/month. Over a year that’s $180-$360 more!

With a non-owner policy, you may pay less than half that price. So you get liability coverage during those times you rent a car, without inflating your premiums all year long.

Are There Any Drawbacks to Non-Owner Insurance?

Non-owner car insurance does have a few limitations to keep in mind:

• It won’t cover damage to the car you’re driving if you’re at fault
• Coverage may not extend to all situations (e.g. using a car for Uber)
• If you buy a car, you’ll need to switch to a regular policy
• Proof of insurance cards list the covered driver, not a vehicle

However, for most folks who only borrow or rent cars periodically, the protections of non-owner insurance likely outweigh the drawbacks. Just make sure to understand any exclusions before purchasing a policy.

Am I Required to Have Non-Owner Car Insurance?

In general, North Carolina does not require non-owner car insurance. The exception is if you need to file an SR-22 form to get your license reinstated following a DUI conviction or driving without insurance.

In that case, non-owner SR-22 insurance will satisfy the state’s mandatory minimum liability coverage requirements. This can then help you legally get back on the road.

Outside of SR-22 situations, non-owner insurance is fully optional. But it’s something I’d still recommend considering if you ever drive cars you don’t own. The liability protection provides invaluable peace of mind.

Final Thoughts on Non-Owner Insurance in NC

For North Carolina drivers like me who are always borrowing or renting vehicles, non-owner insurance delivers significant value. I feel much more confident and worry-free knowing I have coverage that follows me whenever I get behind the wheel of a car I don’t own.

If you frequently drive non-owned vehicles in North Carolina, I encourage you to get quotes and learn more about this important coverage option. It really can provide peace of mind for just a few dollars a month. Then you too can hit the road with confidence, knowing you’re protected!