Non Owner Car Insurance: What Is It and What Does it Cover?

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Non-owner car insurance offers liability coverage that follows you from vehicle to vehicle (Photo: @meeelv via Twenty20)
If you’re a frequent driver but don’t own a vehicle, a non owner car insurance policy may be just what you need. With non-owner car insurance, you enjoy liability coverage that follows you from vehicle to vehicle.
You might be pleasantly surprised at how much cheaper a non owner car insurance quote is compared with a primary car insurance policy, too.
For help understanding and interpreting car insurance quotes online for a non-owner policy, read on.

What is non owner car insurance?

Non-owner car insurance is a type of liability car insurance that can cover you if you drive but don’t own a car. It’s also called non-drivers insurance. It’s the right choice for people who rent or borrow a car frequently. This coverage means you’ll have liability protection in any car you drive, no matter who owns the vehicle.
A non-owner car insurance quote is typically 10% cheaper than a standard policy. This makes it a good option for people who need affordable auto insurance liability but don’t own their vehicle. There’s no deductible, primarily because non-owner car insurance kicks in only if the car owner’s main coverage doesn’t cover all the damages.
It’s not the right policy for people who live with the car owner and should be listed on the car’s primary policy.
You also do not need non-owners car insurance if you sometimes drive a company car but only for business. Typically, the company’s policy covers employees who drive company vehicles for professional reasons.
Because non owner car insurance is purely liability coverage, it does not include comprehensive or collision coverage.

How does non owner auto insurance work?

Let’s say you get into an accident while driving a friend’s car. You cause $30,000 in damage. Your friend’s insurance had a policy limit of $25,000. You would still be responsible for the remaining $5,000.
If you have a non owner car insurance policy, it will kick in if your own policy limits are greater than your friend’s. For instance, if your policy limit is $40,000 and your friend’s is only $25,000, together you can cover all the property damage liability.

How much does non owner car insurance cost?

Non-owner car insurance is much cheaper than a policy where the policyholder owns their own vehicle. You can expect to pay between $200 and $500 per year. Your cost will depend upon your driving history, and each insurance company will calculate your rate differently.
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Other instances where you might consider purchasing a non owner insurance policy

If you don’t own a car, you are not legally required to have car insurance. But if you frequently drive other people’s vehicles, it’s smart to get non owner car insurance to protect yourself. Here are some situations in which you should consider getting this type of coverage:
You use a car sharing service
If you frequently utilize a car-sharing service like ZipCar or Car2Go, then non-owner car insurance is a great way to cover yourself. Many of these companies offer some kind of coverage to their temporary users, but you should double check to make sure you’re comfortable with the level of coverage offered.
You frequently rent cars
When you rent a car, you need to provide proof of insurance. You can buy rental car insurance from the rental company for approximately $20 per day. However, if you rent a car frequently, then non-owners car insurance could be much cheaper than the rental company’s insurance over the long run.
Some credit cards offer rental car insurance, but it typically does not include protection against being sued.
You often borrow a friend’s car
Do you borrow friends’ cars frequently? Then it’s a good idea to get non-owners car insurance. Every time you get behind the wheel, you can trust that your own policy is protecting you, no matter how good or bad the car owner’s coverage is.
If the car you borrow is owned by someone you live with, or if you’re typically borrowing the same car over and over again, you should consider a different solution. See if you can be added to the car owner’s policy to get primary coverage.
You sold your vehicle or won’t drive for a while
To prevent a lapse in coverage—and increased rates when you try to get insurance after a lapse—you can get non-owner car insurance. If you’ve sold a vehicle or won’t be driving for a period of time, it’s still important to retain some kind of auto insurance. This can stop insurance companies from raising your insurance rates due to a coverage lapse.
Your state requires insurance to get or reinstate driver’s license
If your state requires you to get insurance in order to reinstate your driver’s license, a non-owners policy is the solution.
You need an SR-22 or FR-44 form
To get your license reinstated after a DUI or serious traffic violation, you may need SR-22 insurance (or FR-44 in Florida and Virginia). You cannot file this form yourself. If you don’t have your own car, then the company that holds your non-owners policy can help you file the form and get your license back.
Not all insurance companies will sponsor these forms. If you do an SR-22 or FR-44 certificate, make sure you get your non-owner policy from a company that can file the SR-22 for you.

How to get a cheap non owner car insurance policy

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