Should You Get Non-Owner Car Insurance?

Non-owner car insurance is an optional form of liability insurance for drivers who frequently rent a car or borrow someone else’s car.
Written by Maria Cruz
Edited by Jessica Barrett
Reviewed by Brice Regling
Non-owner car insurance provides liability coverage to drivers who don’t own their own vehicles. This
car insurance
coverage provides financial protection if you regularly rent or borrow a car or need insurance to reinstate your driver’s license.

Non-owner insurance is liability coverage for drivers who don’t have a car

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Do you need non-owner car insurance?
You might need it if you:
You may not need it if you:
Sometimes borrow cars from people you don't live with
Rent cars frequently
Often use car-sharing services
Want to avoid a lapse in car insurance coverage
Need an SR-22 certificate but don't have a vehicle
Are getting your license in a state with an insurance requirement
Live with someone who owns a car
Rent cars infrequently
Have your own car
Don't plan to own a car any time soon
Learn More

What non-owner car insurance covers

Similar to a standard car insurance policy, non-owner car insurance policies provide set amounts of:
  • Bodily injury liability
    : Covers medical bills and related expenses up to your liability limits if you cause an accident in a car you don’t own
Keep in mind: Non-owner car insurance is secondary coverage, which means that the vehicle owner’s car insurance coverage will pay out first in the event of an accident.

Non-owner insurance isn’t full coverage

Non-owner car insurance does not cover:
  • Damages to the car that you are driving: This is only covered if the owner has collision coverage and comprehensive coverage on their primary policy
  • Your medical costs: These are only covered if you have non-owner PIP or you’re able to add MedPay to your non-owner policy
  • Rental reimbursement, roadside assistance, etc: Standard insurance policies sometimes include additional coverages like rental reimbursement—but since a non-owner policy follows you, not a specific vehicle, those add-ons aren’t available
  • Other drivers: Your non-owner policy won’t cover anyone else in your household, including your spouse or children

How non-owner insurance works

Suppose you crash your friend’s car into another vehicle, leaving you liable for $65,000 in medical expenses and $40,000 in property damages. 
  • Your friend has a primary insurance policy for the car that covers up to $50,000 in bodily injury and $25,000 in property damage per accident. 
  • Since the other driver’s costs exceed these coverage limits, your non-owner coverage would kick in to cover the remaining $15,000 in medical bills and $15,000 in property damage costs.

Do you need non-owner insurance?

Here are some instances where non-owner car insurance might be a good choice.
  • You occasionally borrow vehicles from people you don’t live with. When you borrow a car from someone you’re usually covered under their policy as a permitted driver—but only up to their chosen limits. Non-owner coverage can give you extra protection.
  • You rent cars often. Rental car insurance can cost $20 to $30 per day, so non-owner coverage could be more affordable. But remember: a non-owner policy only provides liability insurance so it won’t pay for any damage to your rental car.
  • You’re temporarily without a car. If you don’t have a car but you’re planning to get another one soon, a non-owner policy will help you maintain continuous coverage and avoid a car insurance lapse.
  • You have an SR-22 requirement but no vehicle. If you’re required to file an SR-22 certificate, you must maintain an active policy and have proof of insurance to keep your driver’s license—even if you don’t have a car. A
    non-owner SR-22 insurance policy
    allows you to meet state minimum liability requirements and satisfy the court mandate.
  • You are trying to get a new license in a state with an insurance requirement. Most teen drivers can just be added to their parents’ insurance, but if that’s not an option, a non-owner policy may be the solution.
  • You frequently use car-sharing services. Companies like Zipcar, Turo, or GetAround typically provide some insurance, but a non-owner policy can provide added protection. Keep in mind that some insurers exclude claims from accidents where the driver has rented a vehicle through a car share service.

Who doesn’t need non-owner insurance?

Non-owner insurance probably isn’t right for you if you:
  • Only occasionally rent vehicles: If you only rent a car a few times a year and don’t really drive otherwise, it’s probably cheaper to rely on rental car insurance instead of a year-round non-owner policy.
  • Have your own car. If you have a vehicle—even if you don’t drive it often—you’ll need a standard auto insurance policy.
  • Don’t plan to own a car in the near future: If you don’t plan to drive again any time soon, you don’t have to worry about a rise in car insurance rates due to a lapse in coverage.
  • Live with someone who has a car: If you live in the same household as someone who owns a vehicle, they should add you as a named driver on their policy. This will make you ineligible for non-owner insurance.
You can get non-owner car insurance from many major auto insurance companies, including:
Remember: If you need an insurance company to file an SR-22, confirm that this service is available before purchasing a non-owner auto insurance policy. Not all insurance companies file SR-22 certificates.

Non-owner insurance usually costs less than traditional car insurance

The average cost of non-owner car insurance is $585 to $748 per year, but your insurance rate can vary depending on your car insurance company, whether your driving history has any violations like DUIs, or even the state you live in. For example, non-owner car insurance is typically more expensive in Florida than in California.
Because it’s a basic liability policy without many optional add-ons, non-owner car insurance tends to be cheaper than standard insurance coverage—especially if you’re downgrading from a full-coverage insurance policy.
If you’re looking for non-owner insurance because you have an SR-22 requirement, your non-owner premiums will be higher than a non-owner policy for someone with a clean driving record.

FAQs

How do I get non-owner insurance?

You’ll usually need to call an insurance agent directly to get quotes for non-owner insurance. Compare non-owner car insurance quotes from a few insurance providers to make sure you’re getting the best rate.

Does non-owner insurance cover rental cars?

Yes, but you’ll need additional coverage from a credit card, travel club, or the rental company to cover any damages to the rental car itself. Non-owner insurance only provides liability coverage for damages you cause when driving a rental car. Depending on the state, additional coverage may be necessary.

Can I buy a car if I have non-owner insurance?

Non-owner insurance will not cover your own car—if you have a non-owner policy and you buy a car, you’ll need to call your insurance company to switch to a standard insurance plan.

Can I insure a car that’s not in my name?

Typically, you’ll need to be the vehicle owner to purchase an insurance policy for that car. If you drive the car regularly, have the vehicle owner add you to their policy. You can also purchase a non-owner insurance policy that will follow you instead of the car.

Does non-owner car insurance cost less than regular insurance?

Non-owner insurance usually costs less than a standard insurance policy—but not always. A non-owner policy includes basic property damage and bodily injury liability protection, plus required coverages like uninsured motorist and MedPay. 
If your standard insurance policy includes additional coverages like collision and comprehensive insurance, a basic liability policy is naturally going to cost less. That said, if you’re a high-risk driver, you’re going to see higher rates no matter what type of policy you choose.

Does a non-owner policy have a deductible?

No, like most liability-only policies, non-owner insurance does not require you to pay a deductible before the coverage kicks in.

What are the best car insurance companies for a non-owner policy?

While many major insurance providers offer non-owner policies, the only way to find the best company for you and the kind of coverage you need is to shop around.

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