The Non-Owner SR-22 Policy, Explained Line by Line
Key takeaways
- A non-owner policy is liability coverage that follows the driver, not a vehicle.
- It pays after the car owner's insurance, which makes it secondary coverage.
- It never pays to fix the car you were driving.
When your documents arrive, they can be confusing. Here's what each part of a typical non-owner SR-22 policy means.
The declarations page
This is the one-page summary. On a non-owner policy, you'll notice something missing: there's no vehicle listed. Instead, you'll see:
- Named insured: you
- Policy type: named non-owner, or something similar
- Liability limits: shown as three numbers, such as 30/60/25
- Endorsements: including the SR-22 or financial responsibility filing
What those three numbers mean
| Number | What it covers | Example (30/60/25) |
|---|---|---|
| First | Injuries to one person | Up to $30,000 |
| Second | Injuries to everyone, per accident | Up to $60,000 |
| Third | Damage to other people's property | Up to $25,000 |
Secondary coverage, in practice
Say you borrow your cousin's car and rear-end someone. Your cousin's insurance pays first. If the damage exceeds their limits, your non-owner policy picks up the rest, up to your limits. If you rent a car, your policy typically provides your liability coverage.
Standard exclusions
- Vehicles you own, or that are furnished for your regular use
- Damage to the vehicle you are driving
- Business use, including delivery and rideshare
- Racing and other intentional acts
Optional add-ons
Depending on your state, you may be able to add uninsured motorist coverage or medical payments. Some states require them. They cost a little more, but they protect you, not just other people.
Questions about the policy
Does the policy cover passengers in the car I'm driving?
Your liability coverage can apply to injuries you cause to passengers, subject to the owner's coverage paying first and your state's rules.
Is there a deductible?
Usually not, because a liability-only policy has no collision or comprehensive coverage.