A family member is a first time buyer and never own a car, hence no car insurance. She has driver license and have rented car before.
Before COVID, IIRC, dealership don’t need to see proof of insurance, just valid driver license, to test drive a car. Now, dealerships are allowing potential buyer to drive the car without the sales associate, but they must see proof of insurance.
I heard about Non Owner Car insurance, such as this. I don’t have experience on this type of insurance.
Anyone can share their experience with this insurance? Namely:
How much typically this cost? I assume it’ll be cheaper than normal insurance?
Can this be converted to full insurance if you buy a car?
Can this be used for test driive?
Again, the purpose is to test drive a car. Once she purchased the car, she’ll get full insurance.
Do they live alone, or in a household with another person who does have car insurance?
IIRC, in some states, you can get a liability-only policy attached to the driver. If they are going to lease a car, they will need insurance. Whomever they think is going to be their insurance company is who they should ask.
I had non owner / operator car insurance years ago back when I used to rent cars every weekend and didn’t own a car for over a year and a half (M-F I would walk to work). I got the NOO insurance to cover my liability for the rental cars and used my CC (which had a more premium primary coverage for collision & comprehensive) for everything else.
It cost a bit more than for a specific car as it needs to be able to cover a wide range of potential cars, but not absurdly so. It also covers you when you borrow or drive a friend or family member’s car, that was also a bit plus as the last thing I’d want is to ensnare a friend’s insurance if they had let me drive their car.
I had used GEICO at the time, but I’m sure other carriers also have this option.
Yes, if all they’re asking for is liability coverage. You may need to get collision coverage as well
You need to get a quote from an insurer like GEICO etc. all I can tell you is it cost a bit more than what a specific car might cost. I don’t even know what state you’re in, so I couldn’t possibly provide any further guidance here.
Typically it’s 6-month terms, but MOST insurance companies will let you cancel at anytime and collect a pro-rated refund. There are a few that will do so but may charge a cancellation fee (I know Mercury used to). So just check on the cancellation policy. But to my knowledge she’ll need to sign up for a 6-mo policy for most insurance companies.