Do I Need a Non-owner Policy? (California)

[bum4evr]

(California) I rent a room from a couple and they have 4 cars which I occasionally drive to run an errand or take one of their kids to school. The cars are all insured by them and they say their insurance is some kind of family plan and AAA will not allow them to add me to the policy.

They tell me I should get a non-owner policy because their policy would not cover me if I got in an accident while driving their vehicle but I am confused because when I looked up non-owner policies online it says it is not meant for cars in the same household you live in and would not cover me in case of an accident.

So should I just get insured for all 4 of those vehicles the same as if I owned them? I cringe at what the rate may be because its just once or twice a week I drive the cars.

Also- when I read up on California insurance some sites say an insured car IS insured if you allow someone else to drive it.... if I get pulled over by a cop and hand him insurance info that is not in my name will I still get a ticket even if the car is insured?

thanks for any help.

 

[djs]

You are in a mix of different issues that don't have clear guidelines.

Lets walk through this.
Driving someone elses car: Normally you are covered under permissive user provisions of the policy. The normal exclusions to this are 'frequent or normal use' and 'live in the same household'. Since you say 'occasionally drive' its probably safe to assume you would not be covered under permissive user.

They say AAA won't let them add you to the policy. This is strange to me, but, AAA can be a bit strange, I'll have to take them at their word on this part. I've heard this before with AAA (never sold it, don't know any different).

NonOwner Policy: Since you can't be added to the current policy, this is a reasonable step. Since you rent a room, if you have a rental agreement in place, then you are not a member of their household, but a tenant and should be okay with this. Realize non-owner policies are only liability and will not cover damage to the car. Also, I would talk to the agent that you buy this from to make sure they understand you have the same address but are not a household member. Ironically, the AAA would still be primary in any accident since (in CA) insurance follows the car first, the driver second.

Technically, you can't get a policy on cars you don't own. I wouldn't go down that road.

As far as tickets go, as long as the car is insured, you won't get a ticket. In CA, you insure cars and rate drivers (most states are the same). Before the officer walks up to your car, he has already ran your plates, knows who the car is insured with and if the policy is in force or not. Just the way it works nowadays.

Dan

 

[BlockO]

not sure if CA sells them. but a "broad form named driver" policy would work as well (but like the named operator policy, no comprehension or collision would be offered on the vehicle you're driving).

 

[BigIVU]

First of all, the people you're living with should talk to a competent professional agent. They can find one locally at www.trustedchoice.com. Most decent personal auto policies cover ANY permissive users unless specifically excluded. If their policy doesn't then they've bought into the myth that all auto insurance is the same. It isn't. Tell them to closely examine their policy. They are likely to find other nasty exclusions, perhaps one that excludes ANY "commercial use." That could as little as running to the post office or Staples for your employer. So, THEY have a problem.

In your case, you can cover your exposure with a Named Nonowner policy. The "ISO standard" form is the PP 03 22. It has an exclusion for the use of autos "furnished or available for your regular use" but that exclusion can usually be removed by a Declarations page entry. Non-ISO insurers may have different forms so, again, you need the consultative services of a good insurance agent who knows what he or she is doing.

This is why all of the online auto insurance quoting services are a total waste of time. The only comparison you usually get is price with complete disregard for what the policy does or doesn't cover and what the claims practices are of the insurer.

 

[djs]

Most decent personal auto policies cover ANY permissive users unless specifically excluded. If their policy doesn't then they've bought into the myth that all auto insurance is the same.

Technically, this is correct but it is VERY misleading. The specifically excluded are almost always (I don't know of a policy that doesn't exclude) members in the same household and/or frequent or regular use of the vehicle.

This means permissive user rules don't apply in this case and to imply otherwise is incorrect.

Dan

 

[BigIVU]

I don't follow you. The "ISO standard" PAP and most "mainstream" policies I've seen have no exclusion for non-family member permissive users that reside in the household. This is the ISO liability "insured" definition:

"Insured" as used in this Part means:
1. You or any "family member" for the ownership, maintenance or use of any auto or "trailer".
2. Any person using "your covered auto".
3. For "your covered auto", any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

4. For any auto or "trailer", other than "your covered auto", any other person or organization but only with respect to legal responsibility for acts or omissions of you or any "family member" for whom coverage is afforded under this Part. This Provision (B.4.) applies only if the person or organization does not own or hire the auto or "trailer".

"Family member" includes residents related by blood, marriage, or adoption, or those under age 21 in the care of one of those individuals.

For any non-family member, permissive use is a rating consideration, not a coverage consideration.

Though, again, there are carriers that might employ driver exclusion endorsements or otherwise exclude such people. One major national carrier recently changed their policy so that, if someone moves into the household, even a family member (think "boomerang kid"), if the carrier isn't notified in 30 days, no coverage.

The important thing is to know what YOUR policy does or doesn't cover.