All about Non-Owner Car Insurance in Tennessee

For Tennessee drivers who don’t own a personal vehicle, non-owner car insurance can provide liability protection and prevent a lapse in coverage.
Written by Kathryn Kurlychek
Edited by Jessica Barrett
background
Non-owner car insurance
offers additional liability coverage for
Tennessee
drivers who have a driver’s license but do not own a vehicle. A non-owner auto insurance policy can supplement primary coverage if you get into an accident while borrowing a friend’s car or driving a rental.
  • Non-owner car insurance costs an average of $2,682 per year in Tennessee.
  • Non-owner car insurance policies usually must be purchased directly from the insurance agency or broker. Comparing non-owner car insurance quotes from multiple car insurance companies is the best way to find low rates.
  • Tennessee non-owner SR-22 insurance can be a good choice for drivers without a vehicle who need to fulfill SR-22 requirements.

The average cost of non-owner car insurance in Tennessee is $2,682

Average cost of minimum liability insurance in Tennessee
Average cost of non-owner insurance in Tennessee
Average cost of non-owner SR-22 insurance in Tennessee
$2035
$2682
$3111
Methodology: Based on Jerry’s carrier review survey, we calculated the average cost of minimum insurance quoted for a single car and a single driver with a good driving record in Tennessee, as well as the average cost of non-owner and non-owner SR-22 policies quoted in Tennessee.

Non-owner insurance rates are cheaper than standard insurance on average

Non-owner auto insurance rates are typically cheaper than standard auto insurance.
Here’s why:
  • Liability-only coverage: A non-owner insurance policy provides
    liability-only coverage
    , which costs less on average than
    full coverage policies
    . Liability insurance means you’ll be protected from paying damages to another driver’s vehicle out of pocket, although it won’t cover damages to the vehicle you’re driving. 
  • Reduced risk: Insurance companies perceive less risk for drivers with limited access to a vehicle as opposed to those who drive regularly.
As with any insurance policy, your personal costs for non-owners car insurance can vary based on factors such as your location, coverage limits, and driving history in Tennessee. 
To find the best rate on non-owners car insurance, make sure to
compare quotes
from several different providers—or let a trusted car insurance broker like
Jerry
collect free quotes on your behalf! 

The top 10 biggest auto insurers in Tennessee offer non-owners insurance

Not every provider offers non-owners insurance policies—so you may have to do some digging to find the best rate. Fortunately, in Tennessee, you can purchase non-owner insurance from all of the state's top 10 largest auto insurers by market share:  
  1. Tennessee Farmers Insurance
  2. Allstate
  3. USAA
    (only available to veterans and current members of the military and their families)
  4. Liberty Mutual
  5. Erie Insurance
  6. National General Holdings Corp.
Need to know: When shopping for a non-owners insurance policy, you may need to contact the insurance company or broker directly. Not every provider advertises non-owner car insurance coverage. 
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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

Tennessee non-owner insurance is a supplemental liability policy

A non-owners car insurance policy consists solely of liability coverage—meaning it protects against the costs of damages and medical expenses for other drivers resulting from an accident caused by you. 
It does not provide coverage for your own vehicle.
Why that matters:
  • Your coverage options are limited: Since a non-owners auto policy isn’t attached to a specific vehicle, you can’t purchase additional coverage options like collision coverage or comprehensive coverage.
  • State-mandated coverages are still included: A non-owner policy will include your state’s mandatory minimum insurance requirements. In some states, those may extend to protections outside of liability insurance, like
    uninsured motorist coverage
    ,
    medical payments coverage (MedPay)
    , and
    personal injury protection
    —although these types of protections are optional in Tennessee and won’t be automatically included. 
Need to know: Non-owner coverage is one of the only types of insurance policies that follows the driver rather than the vehicle—meaning it only covers the policyholder. A non-owner policy will not pay for damage to the car you’re driving or for any medical costs incurred by yourself or your passengers. 

A supplemental policy pays out after the primary coverage limits are met

In Tennessee, you must meet the state’s financial responsibility laws by carrying the state-mandated minimum amount of coverage—along with proof of financial responsibility (aka
proof of insurance
)—every time you’re on the road.
Whether you rent cars often or drive a borrowed ride from a friend or family member, the vehicle should already have at least the standard amount of liability coverage—either through the vehicle owner’s personal insurance policy or
rental car insurance
In the event of an accident, that primary policy will pay out first. But if that coverage is exhausted, you could still be found responsible for the remaining costs of damages. 
If you have non-owner insurance, it will pay up to your policy limits (which usually match the state minimum liability requirements) for any vehicle damages or medical bills left over after the primary policy pays out. 
  • $25,000 in bodily injury liability coverage per person
  • $50,000 in bodily injury liability coverage per accident
  • $25,000 in property damage liability per accident
Let’s see how this translates into a real-world scenario: 
Imagine you borrowed your cousin's motorcycle for a quick joyride to the grocery store. While waiting at a red light, you accidentally collide with a parked car, resulting in significant damage to the motorcycle and rendering it a total loss.
If your cousin only has Tennessee’s minimum liability insurance, their policy would cover up to $25,000 for the property damage to the parked car. But if repair costs exceed that amount, you would be left responsible for the remaining expenses.
If you have a non-owner car insurance policy with the minimum liability limits required in your state, it can help cover the remaining property damage costs. In this scenario, your policy would contribute towards the repair expenses up to the same limit of $25,000 as your cousin's policy.
Even as a supplemental policy, choosing minimum coverage could still leave you financially vulnerable. We recommend raising the coverage limits on your non-owner policy—it usually only costs a few extra dollars a month but can make all the difference if you cause an accident.
Note: Like most liability-only policies, non-owner auto insurance usually does not require you to pay a deductible.

Non-owner SR-22 insurance in Tennessee

In Tennessee, the average cost of non-owner SR-22 insurance is $2,682. 
Drivers in Tennessee who have been convicted of a serious driving violation may be required to purchase
Tennessee SR-22 insurance
. Insurance companies issue an SR-22 to prove that you carry at least the minimum amount of required coverage in the state. 
The state of Tennessee requires an SR-22 certificate for high-risk drivers convicted of the following: 
  • Driving without proof of insurance
  • Driving with a suspended or revoked license
  • Severe or repeated driving violations
To fulfill an SR-22 requirement, you must be able to provide proof of insurance coverage—otherwise, you may encounter additional fines and penalties and your SR-22 period will need to be restarted. 
If you don’t have a vehicle, a
non-owner SR-22 policy
can help you maintain compliance with these requirements.
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FAQs

In Tennessee, a non-owner insurance policy offers supplemental liability coverage to drivers who frequently rent or borrow someone else’s vehicle. 
A Tennessee non-owner insurance policy will include the state’s minimums for
bodily injury
and
property damage liability
, and can enhance liability protection in the event you cause an accident while driving someone else’s vehicle. 
In most cases, it is not possible to obtain a car insurance policy for a vehicle you do not own in Tennessee. Insurance companies prefer to see that the policyholder’s name matches the name on the vehicle’s title—although you can be added to the policy as an additional driver. 
Alternatively, you have the option to take out a non-owner insurance policy. For drivers who frequently borrow or rent vehicles, a non-owner policy can provide further liability protection in the event of an accident.
Yes. Every driver in Tennessee is required to meet the state’s financial responsibility law, which mandates set amounts of liability coverage for car owners. Those include at least $25,00 per person in bodily injury liability, $50,000 per accident in bodily injury, and $25,000 in property damage liability per accident. 
Driving without proper insurance coverage in Tennessee could result in serious legal penalties, including fines, driver's license suspension, and—in the case of repeated violations—possible jail time. 
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