Non Owner SR22 Insurance: What to do if you Need SR22 But Don't Own a Car?

Car insurance companies offer non-owner policies because the industry is aware that there are certain situations where a person may need to carry car insurance but doesn't have a vehicle to place on the policy.

Typically, a need for a non-owner policy arises because:

• A person is mandated by the state to obtain a car insurance policy, but that individual doesn't have a car.
• Someone who doesn't own a car wants car insurance coverage for when he or she occasionally operates non-owned vehicles, such as a rental car.

If you have been convicted of a DUI, or other serious traffic violation, a state regulatory entity often requires you to have an insurer certify that you have the ability to pay future auto accident claims (up to the certain mandated limits) by the means of a SR-22 form being filed.

A SR-22 can only be filed by car insurance companies after you have obtained at least the state-mandated coverages as part of a car insurance policy -- and can be required whether you own a car or not. 

Some of the reasons your state may require an SR-22 certificate of financial responsibility include, but aren’t limited to, the following:

• Failure to carry liability insurance on your vehicle
• Conviction for driving without insurance
• Driving uninsured and being involved in a motor vehicle accident
• DUI, DWI or other major alcohol offense convictions
• Serious moving violation (such as reckless driving) convictions
• Accumulating too many DMV points
• Being termed a habitual traffic offender
• Needing to apply for a hardship or probationary permit (while license is suspended)
• Reinstating your license after a suspension or revocation

Technically there is no such thing as "non-owner SR-22 car insurance," as the SR-22 is the form you file to verify financial responsibility and the insurance associated with it would be a non-owner policy. Still, the end result is that you have insurance and state-mandated forms in place to comply with the laws for such a situation.

States can mandate certain non-car owners to obtain car insurance and carry an SR-22 to verify financial responsibility. That’s because state agencies are aware that it’s possible for these individuals to be negligent and harm other people and their property while driving, even if the car they’re operating isn’t owned by them.

A non-owner policy is confusing to some, but it shouldn’t be. It’s not a coverage but instead a policy description for when you have car insurance but don't own a car to insure.

Each state is different, but as a general rule a non-owner car insurance policy won’t cover you for a vehicle registered to you, one in your household, or a vehicle provided for your regular and frequent use, so don’t purchase a non-owner policy if any of these scenarios apply.

Some believe this policy type is the magic bullet of coverage; it’s not. A non-owner policy only covers liability up to the limits purchased and this coverage is usually secondary to that of the auto insurance policy of the actual car owner.  So, if you borrow a friend's car to drive, the car owner's policy will be primary.

A non-owner policy will normally include:

• Bodily injury liability
• Property damage liability

Depending upon the state in which you live and the car insurance company you’re using, you may also be able to include on the policy other types of car insurance coverage, including:

• Medical payments
• Uninsured motorist bodily injury
• Underinsured motorist bodily injury

A non-owner policy doesn’t offer physical damage coverages of collision or comprehensive, so any car that you do drive isn’t covered in any way by your non-owner policy if you damage it.

Most companies can provide immediate proof of insurance via e-mail or fax. Processing of SR-22 requests depends mostly on whether your state accepts filings electronically.

If at any time during your policy period, you purchase a car, you’ll need to alert your car insurance carrier immediately so that you can change your policy over to an owner’s policy. If you fail to inform your auto insurer of the change and you’re in an accident, coverages under the non-owner policy may be denied.

To purchase a non-owners policy, you must first meet certain conditions. An insurance company will generally require that:

• You have a valid driver’s license.
• You do not own a vehicle.
• Some insurers also require that no one in your household owns a vehicle and that you do not have regular access to a vehicle.

Next, you would shop for a non-owner policy the same way as you would for a standard policy. However, not all carriers offer non-owner coverage.

The following companies sell non-owners policies, both with and without an SR-22. So, this is a good list to start with:

• State Farm
• Dairyland
• The General
• Safe Auto
• Direct
• Infinity
• Allstate
• Progressive
• Geico

You’ll next need to have an SR22 filed on your behalf. The insurance company will do this for you. An SR-22 can only be filed by car insurance companies after you have obtained at least the state-mandated coverages as part of your non-owner car insurance policy.

Once you have the SR-22 filed, you’ll need to maintain the related insurance coverage for the state-mandated period of time. The time period varies, but most commonly it’s for three years.

The best way to get cheap SR-22 non-owner insurance quotes is to do what you would to find a low-cost standard policy – compare car insurance quotes from multiple companies. If you are buying a new policy, be sure to ask if the company files SR-22 forms before you spend time getting a quote. Even though you’ll pay more for coverage attached to an SR-22, you can still save by comparison shopping.

A non-owner policy will generally cost much less than an owner’s policy on its own, but with an SR22 it will cost much more. The average cost of a non-owners policy with an SR22 for one DUI conviction is $1,752, based on a rate analysis by CarInsurance.com Senior Consumer Analyst Penny Gusner. However, if you are filing an SR22 for a traffic conviction other than a DUI, for instance a license suspension or driving uninsured, it may be less.