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How Does Non-Owner Car Insurance Work?


Non-owner car coverage is for anyone who drives a vehicle they don’t own or needs to prove that coverage.

Non-owner car insurance covers people who don’t own a vehicle but need to drive occasionally. You might commute by train, but sometimes rent a car or use a shared vehicle to travel to work. Non-owner insurance may be right for your situation if you are a frequent driver of other people’s cars.

Non-owner car insurance may not be the best option if you borrow a vehicle from someone close to you or from your family. You should instead be on the policy of the car owner. This may be required, depending on the state and their insurance, even if your car is owned by a roommate.


What is non-owner car insurance?

Non-owner insurance provides coverage for bodily injury or property damage if you are liable for injuries or damages caused by an accident. Non-owner insurance does not cover any damage to your vehicle or injuries sustained in an accident. Non-owner policies are also less expensive than standard auto insurance policies.

Is it possible to get car insurance even if you don’t own a car?

Non-owner car insurance is also called non-owner insurance. It provides liability coverage for those who do not own a vehicle but may occasionally use another’s. Liability coverage covers injuries and property damage that you cause to other people in an automobile accident. It doesn’t cover damage to your car if it’s rented or borrowed, and it does not pay for your injuries if it causes a crash.

Who needs non-owner auto insurance?

In the following scenarios, those who don’t own a vehicle may want non-owner insurance.

An SR-22 or FR-4 form is required.

These forms may be required by your state to reinstate your driver’s license following a serious conviction, such as a DUI. These forms are filed by your insurers to show that you have the minimum required insurance coverage.

time lapse photography of man riding car

To renew or get a driver’s license, your state may require you to have insurance.

Some states require you to have insurance if you are applying for a license or trying to reinstate it after being suspended.

A car-sharing service is something you use often.

Although Zipcar and Turo provide some coverage for drivers of car-sharing services, it is often not enough to meet the minimum requirements in your state. You would be responsible for any damages caused by a car accident. This coverage can be supplemented by a non-owners policy.

Continuous coverage is important.

Insurers will consider you risky if you don’t have auto insurance, even if you are driving between cars. This can lead to higher rates when buying a vehicle. If you aren’t driving for a long time, buying non-owner insurance may be cheaper than skipping coverage.

You rent cars frequently.

If you rent frequently enough, non-owner insurance may be less expensive than liability coverage at the rental desk. You can have peace of mind if your rental car is involved in a rental car accident. The rental company may offer coverage for damage, but it is not likely to cover the rental.

It is common to borrow cars from other people.

Normally, the car owner’s insurance pays for an accident. However, if the liability limits exceed the cost of the vehicle, the driver would be responsible for the rest.

Let’s say you are at fault in an accident caused by a friend driving the car. The other driver requires $35,000 of medical attention. You would be responsible for $10,000 if the friend who lent you the car had only $25,000 bodily injury liability coverage. This expense could be covered by your non-owner policy.

Who should not buy non-owner auto insurance?

In these situations, a non-owners policy is not the best option.

You borrow a car usually from your family member.

You should be listed on a car insurance policy as a covered driver if the vehicle you use most often belongs to someone you live with. This is because coverage may be denied depending on where you live or which company insures your vehicle.

You may not drive at all or very rarely.

Non-owner car insurance may not be worthwhile if you only rent a car for a few days a year or borrow a friend’s vehicle occasionally. You can either buy insurance at the rental desk or rely on the insurance policy of a friend to protect you in the event of an emergency.

It’s important to double-check that you are covered before you get behind the wheel. You may not be covered by all insurance companies if your friend allows you to drive their vehicle.

closeup photo of black analog speedometer

What does Non-Owner Car Insurance Cover

Non-owner car insurance covers you if you cause a car crash while driving a rented vehicle.

  • You cause bodily injury to another person, such as medical bills
  • You can cause damage to other people, such as property or car repairs bills.
  • Legal defense in the event you are sued because of causing a car crash.

You may be eligible for medical coverage through non-owner auto insurance policies, depending on your state or insurance company.

  • Uninsured motorist coverage (UM: This coverage covers your medical expenses in the event that someone else crashes into you and they do not have enough liability insurance. Uninsured motorist coverage may also cover hit-and-run accidents, depending on where you live.
  • MedPay (Medical Payments): This coverage covers you and your passengers for medical expenses, regardless of who caused the accident.

Non-owner car insurance can be considered secondary coverage. It kicks in after the primary coverage has been paid. If you cause an accident with a friend’s vehicle, for example, your friend’s insurance will pay first up to the policy limits. Your non-owner car insurance may pay if the policy’s limits of liability are exhausted.

What is not covered by non-owner car insurance?

Non-owner car insurance is intended to provide basic liability insurance for drivers, but there are some common exclusions.

  • Damage to your car. The vehicle’s owner may file a claim against their collision and comprehensive insurance or against the at-fault driver’s insurance if they cause an accident to your car.
  • Any injuries that you sustain in an automobile accident. You may be eligible to add medical payments coverage if you need coverage for injuries.
  • Other drivers. Non-owner car insurance policies generally only cover you and not your spouse or any other members of your household. If someone in your family has personal automobile insurance, some insurance companies may not allow you to have non-owner car insurance.
  • Business driving. A non-owner car insurance policy will not cover you if you use your car to deliver goods to clients. Non-owner car insurance policies often exclude business use.
  • Personal possessions. Non-owner car insurance policies won’t cover personal belongings that have been damaged, lost, or stolen. Auto insurance does not cover the theft of laptops from cars you borrow. Your homeowner’s insurance or renters’ insurance may provide coverage for personal property.

What is the cost of non-owner car insurance?

Insurance for non-owner cars is usually cheaper than standard liability policies. Our market research shows that annual costs can range between $200 and $600. A deductible is usually not included in a non-owner’s car insurance policy.

Non-owner Car Insurance Quote

We recommend getting quotes from multiple providers if you’re considering buying non-owner auto insurance. Below are links to many of the best providers, as well as a free quote tool.

Non-owner insurance quotes are similar to quotes for insurance on your car. They vary depending upon the provider and a variety of other factors, including:

  • Age
  • Marital status
  • Driving history
  • Credit score
  • State
  • City

Non-owner Car Insurance

Non-owner auto insurance policies can be beneficial for drivers without a vehicle. It provides you with liability coverage and the chance to buy add-on coverage like personal injury protection or underinsured/uninsured motorist coverage. These premiums are offered by many car insurance companies, including the ones listed below.


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