A non-owner auto insurance policy in Oregon is basically a policy that provides secondary coverage for Bodily Injury (and Uninsured Motorist Bodily Injury) in the event of an accident. It also provides Property Damage and Personal Injury Protection (PIP) on a secondary basis. There is no coverage for Uninsured Motorist Property Damage, Comprehensive, or Collision coverage.
One of they major points to remember is that non-owner car insurance policies do not provide any type of coverage for the vehicle you are driving. In fact it does not cover the vehicle you are driving at all, under any circumstances. The registered owner of the vehicle is required to maintain at least minimum liability on the vehicle.
Let's look at an example - you borrow my car, you have a non-owner policy (or even a regular policy for that matter), and you get into an accident. My insurance company will pay the charges for the accident, not yours. OK, let's say the accident you had in my car was your fault, and the damage you caused costs more to fix than my company will pay for. Only then does your policy kick in and begin to pay. There are some limitations to these payments, such as whether you live in my household and have regular use of the vehicle, etc. But generally that is how it works.
So why would you want or need a non-owner's auto insurance policy then? If you are required by the Oregon DMV to file an SR22 you might need one. People who do not have a vehicle registered in their name are eligible for a non-owner's auto insurance policy, people who have a vehicle registered in their names are not. If you do not own a car, but drive for work and need an SR22 for a valid driver's license you would get one of these types of policies.
Be careful however they do not cover a vehicle owned or registered to you. They do not make it legal to drive an otherwise uninsured vehicle on the roads of Oregon. And even if you just bought the car today and didn't have time to add it to your policy, it is not covered.
If you do have a non-owner's auto insurance policy and purchase a car, call us right away. Most companies will let you convert your existing policy to a "regular" policy by adding the vehicle without starting a whole new policy.