Do you frequently borrow cars in Illinois but don’t own one yourself? Perhaps you regularly rent vehicles for business trips or pleasure, or maybe you rely on car-sharing services to get around. If so, you might need non-owner car insurance. Driving without sufficient insurance in Illinois can lead to serious financial repercussions. This article will explain everything you need to know about non-owner car insurance in Illinois, including who needs it, what it covers, how it works, and how to get the best rates.
Who Needs Non-Owner Car Insurance in Illinois?
Non-owner car insurance is a type of auto insurance that provides liability coverage to drivers who don’t own a vehicle but frequently operate one. Several groups of people in Illinois might benefit from this coverage.
Frequent Borrowers
If you often borrow cars from friends or family, you could be held liable if you cause an accident while driving their vehicle. While the owner’s insurance policy will typically provide primary coverage, their limits might not be enough to cover all the damages and injuries. Non-owner car insurance can provide an extra layer of protection.
Renters
If you regularly rent cars, the rental company typically offers insurance options. However, these options can be expensive, and they may not provide adequate coverage. A non-owner policy can give you peace of mind knowing that you have liability coverage whenever you’re behind the wheel of a rental car.
Car Sharing Users
Services like Zipcar or Turo offer convenient access to vehicles, but the insurance coverage provided by these services might not be sufficient. Non-owner insurance can supplement the coverage offered by car-sharing companies.
Those Who Need SR-Twenty Two
If you’ve been convicted of a DUI or other serious traffic violation, the state of Illinois might require you to file an SR-Twenty Two form, which certifies that you have the minimum required liability insurance. Even if you don’t own a car, you can still obtain non-owner insurance to meet this requirement.
People Who Drive Company Cars
If you drive a company car for personal use outside of work hours, your employer’s insurance policy might not cover you in case of an accident. Non-owner insurance can provide liability protection for these situations.
What Does Non-Owner Car Insurance Cover in Illinois?
Non-owner car insurance primarily covers liability, which means it protects you financially if you cause an accident that results in bodily injury or property damage to others.
Bodily Injury and Property Damage Coverage
Bodily injury liability covers medical expenses, lost wages, and other damages if you injure someone in an accident. Property damage liability covers the cost of repairing or replacing someone else’s vehicle or property if you damage it in an accident. It’s important to understand that non-owner car insurance doesn’t cover damage to the car you’re driving or your own injuries. The car owner’s insurance policy should cover damage to their vehicle, and your own health insurance policy should cover your injuries. In Illinois, non-owner policies often do not offer uninsured or underinsured motorist coverage.
How Non-Owner Car Insurance Works in Illinois
When you’re involved in an accident while driving a borrowed or rented vehicle, the car owner’s insurance policy will typically provide primary coverage. However, if the owner’s policy limits are insufficient to cover all the damages and injuries, your non-owner insurance policy will kick in to provide secondary coverage. This means that non-owner car insurance acts as a safety net, protecting you from potentially devastating financial losses.
Benefits of Having It
Having non-owner car insurance offers several benefits. It provides financial protection in case of an accident, gives you peace of mind while driving borrowed or rented vehicles, helps you comply with SR-Twenty Two requirements if applicable, and prevents gaps in your insurance history. Maintaining continuous coverage can help you get better rates in the future, even when you eventually buy a car.
Non-Owner Car Insurance and Illinois Regulations
Illinois law requires all drivers to carry minimum levels of liability insurance. These minimums help ensure that accident victims are compensated for their injuries and damages. Non-owner policies also have to comply with the Illinois minimum liability requirements.
Illinois Minimum Liability Requirements
As of today, Illinois requires drivers to carry at least twenty-five thousand dollars of bodily injury liability coverage per person, fifty thousand dollars of bodily injury liability coverage per accident, and twenty thousand dollars of property damage liability coverage per accident.
SR-Twenty Two Information for Illinois
If you’re required to file an SR-Twenty Two form in Illinois, you can use non-owner insurance to meet this requirement. The SR-Twenty Two form certifies that you have the minimum required liability insurance coverage.
Factors Affecting the Cost
The cost of non-owner car insurance in Illinois can vary depending on several factors.
Driving Record, Age and Credit Score
Your driving record is one of the most significant factors. If you have a history of tickets, accidents, or suspensions, you’ll likely pay more for insurance. Younger drivers typically pay more than older drivers due to their lack of experience. In Illinois, insurance companies can use your credit score to determine your rates.
Coverage Limits and Insurance Company
The higher the coverage limits you choose, the higher your premiums will be. Rates vary significantly between insurance providers. It’s important to shop around and compare quotes from multiple companies to find the best deal.
Location within Illinois
Urban areas may have higher rates than rural areas due to higher traffic density and a greater risk of accidents.
How to Get the Best Rates on Non-Owner Car Insurance in Illinois
Finding the best rates requires comparison and diligence.
Shop Around and Consider Higher Deductibles
The most important step is to shop around and compare quotes from multiple insurance companies. Don’t settle for the first quote you receive. If you’re comfortable paying a higher deductible, you can typically lower your premiums.
Maintain a Clean Driving Record and Ask About Discounts
The best way to save money on car insurance is to maintain a clean driving record. Avoid tickets and accidents whenever possible. Also, be sure to ask about any discounts you might qualify for, such as safe driver discounts or discounts for having multiple policies with the same company.
Work with an Insurance Agent
An independent insurance agent can help you compare quotes from multiple companies and find the best coverage at the best price. They can also answer any questions you have about non-owner car insurance and help you choose the right policy for your needs.
Common Misconceptions
There are several common misconceptions about non-owner car insurance that should be cleared up.
“I don’t need it because the owner’s insurance covers everything.”
This is a dangerous assumption. While the owner’s insurance policy will typically provide primary coverage, their limits might not be enough to cover all the damages and injuries if you cause an accident. In such cases, you could be held personally liable for the remaining costs.
“It’s too expensive.”
Non-owner car insurance is often more affordable than a full auto policy, especially if you don’t own a car. The cost is typically lower because you’re only insuring yourself, not a specific vehicle.
“My credit card rental car insurance is enough.”
Credit card rental car insurance typically only covers damage to the rental car itself. It doesn’t provide liability coverage if you cause an accident that results in bodily injury or property damage to others.
In Conclusion
Non-owner car insurance is an important consideration for anyone in Illinois who frequently drives but doesn’t own a vehicle. It provides essential liability protection, peace of mind, and helps you comply with legal requirements if needed. Don’t take unnecessary risks. Get a free quote for non-owner car insurance in Illinois today! Or contact an independent insurance agent to discuss your options. Drive safely and responsibly.
