Business
Non-Owner Car Insurance: What Is It and Who Should Have It?
The basics of auto insurance seem very simple on the surface. You have a car, you want to drive it, so you get a driving license and of course, an auto insurance policy. The type of auto insurance policy is also easy to understand; get liability insurance with the minimum coverage limit and you are good to go. There are however some instances when things get complicated. For example, what if you want to drive, but you don’t have a car. Or when you get your license suspended?
Insurance companies will not give you any auto insurance policies if you don’t have a registered car to your name, or if your license has been suspended. And walking 20 miles every day to your work or for other emergencies is not the best idea, and neither is driving without auto insurance. This is where non-owner car insurance policies come in and it can save you from a lot of hassle, and legal trouble as well.
What is Non-Owner Car Insurance
The great thing about the names of some auto insurance policies is that they are self-explanatory. A non-owner car insurance policy is an insurance policy for someone who does not own a car. But why can’t people with no car get an auto insurance policy?
Insurance companies are risk management companies. These companies charge a fee to take your side of risk so that in case of an accident caused by you, you don’t have to pay from your pockets. This is applicable when you have a car that’s registered to your name. When you don’t have a car (that you own), then there’s an issue of insurable interest.
Insurable interest means that the car (that you don’t own) is not in your financial interest. Since you have not invested your money in the car, you don’t have any stake in it. Why would you care to drive the car carefully? The chances of you crashing or damaging the car is higher when it is not your insurable interest.
This is when non-owner car insurance policies come in. This insurance policy allows you to get car insurance even if you don’t own a car or you are renting a car for a trip. Non-owner car insurance is your best option if you intend to drive someone else’s car or rent a car often.
What Does it Cover
Non-owner car insurance coverage is exactly like liability coverage. It has three different coverage, one for bodily injury liability per person, one for bodily injury liability per accident, and property damage liability. The coverage limit depends on the policy you choose and the price of the policy.
Do note that non-owner car insurance policies can be a bit expensive since they are taking on more risk than normal insurance policies have. This is why you should compare as many insurance companies as possible and look at their prices. Get the non-owner insurance policy that costs the least, has the lowest premium rates, and provides the best coverage.
What Non-Owner Insurance Does Not Cover
Non-owner insurance just covers the liability and it can be claimed by the other person, not the policyholder. For example, if you cause an accident and the other person sustains injuries and damages to their car or property, your liability coverage will pay for the medical treatments and repairs of the vehicle.
Non-owner insurance policy does not cover collision or comprehensive insurance policy. This means that any damage to the car that you are driving will not be covered under this policy, whether it is parked or moving. You’ll have to pay from your pockets for the repairs. Since it also does not include comprehensive coverage, if there is any damage to your car due to hailstorms, fire, earthquakes, and other natural calamities or theft, well, tough luck.
When Do You Need Auto Insurance
Most of the time, if you own a car and want to drive, general insurance is enough. If you want to drive your friend’s car or maybe a car that belongs to someone in your family, you can request them to add you as a driver to their insurance policy and that would be fine. But there are specific cases when you need to get a non-owner car insurance policy.
Suspended License
If for some violations your driver’s license has been suspended but you need to drive a car for emergencies and commuting to your office, you can apply for a non-owner car insurance policy (as insurance companies won’t give you a general policy), along with an SR-22 or FR-22 form that proves you have an auto insurance policy. Remember that SR-22 is just a legal form that shows you have an insurance policy. It is usually provided by the insurance company once you get a non-owner insurance policy.
You’re a Serial Car-Renter
Some people spend their lives avoiding the road, while some spend most of it there. If you belong to the latter, and you rent cars a lot, then a non-owner insurance policy is the one you should get. It helps you save cost, provides the coverage you need to drive securely, and does not require you to show a registered car to your name. Just note that some car rental companies will make you pay extra for comprehensive and collision coverage.
Cost of Non-Owner Insurance Policy
The cost of a non-owner insurance policy depends on multiple factors, just like general auto insurance policies do. Important factors such as your driving record, previous insurance claims, the amount of coverage, your age, gender, etc are considered when deciding the cost of the insurance.
If you have had your license canceled, you will have to pay a higher amount for the policy since the insurance companies see you as a high-risk individual. A ballpark figure for the average cost of a non-owner insurance policy would be somewhere around $250 to $650 per year. There is a chance that you might get a higher quote than this estimate, but for most people, this will be a range.
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos