Should I Buy a Bond or a Non-Owners Policy?

Simple Questions to Help You Decide

If you don’t have a car but you still drive and need to be covered, you may not be sure whether you need a Bond or a Non-Owner policy. The answer to this, as with all other insurance decisions, will depend on your specific needs. Here are a few questions you should ask yourself when deciding what’s appropriate for you.

Is there a chance I’ll take ownership of a vehicle at some point in the next 6 to 12 months?

Although both options provide coverage for drivers who need certified proof of financial responsibility (SR-22) but do not own a car, the Bond will also provide the basest of liability coverage for you as the Bond holder when driving a car, you own.

It is still very important that you speak to your local Acceptance agent about your options, to make sure you find the best fit for your specific needs. Even though a Bond will technically provide some liability coverage on owned vehicles, a regular personal auto policy covers significantly more, including but not limited to permissive use, out of state coverage, and defense counsel.

And of course, Non-Owner policies will not provide coverage for owned vehicles at all. If you don’t currently own a car, need to provide proof of financial responsibility, and believe you will purchase a car within the following year, then the Acceptance non-owner policy may be the better choice. It not only provides more coverage, but, because it is a derivative of the regular personal auto policy, you can simply call your Acceptance agent, or the company directly, to tell them you now own a vehicle. The switch over to a regular auto policy is much easier and smoother. No need to cancel your policy and buy a new one.

Do I regularly drive out of state?

A Bond only provides no coverage outside of the state of Ohio. If you live near the state border and/or regularly drive out of state, the Bond is a very risky option because you will not be covered in any state other than Ohio.

Do I want the option to cover my own medical bills in the event of an accident?

A Bond only provides payment for your legal liability to others. A Non-Owner policy gives you the option to buy Medical Payment benefit coverage and/or Uninsured Motorist coverage benefits to cover yourself if you are injured or suffer a loss due to someone else’s fault.

Do I want to buy higher than state minimum limits?

In addition to the option to buy Med Pay and UM coverages, Non-Owner policies also give you the option to purchase additional Bodily Injury and Property Damage liability limits. The Bond program only provides state mandated minimum limits for liability coverage.

Do I need other insurance products and do I want all those products to be bundles together for convenience?

Because the Non-Owner program is a derivative of our regular personal auto program, you have more options in the terms of add-ons. We do offer other products such as Renter’s, Hospital Indemnity, and Roadside Assistance, that can be added onto your Auto insurance or Non-Owner policy and your monthly invoices are combined into one convenient document. You cannot include these types of additional products with your bond.

So, which one is right for you?

Regardless of which option you choose, the Bond and the Non-Owners policy are both valid options for those that require certified proof of financial responsibility (SR-22). Now that you’ve asked some basic questions and better understand your needs, hopefully you have a clearer picture of which product is appropriate for you and you can feel more confident in your purchase. Please remember, any of our local retail or call center agents are always happy to assist you, answer your questions, and help meet all your insurance needs.

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