What Is Non-Owner Car Insurance and What Does It Cover?
Chloe Della Costa is a freelance copy editor and writer with a degree from Bard College. She specializes in copy editing and fact-checking content related to personal finance, insurance, and business.
If you don’t own a car, you may still need coverage — and this is where non-owner car insurance comes in. Non-owner car insurance can protect you if you’re in an accident while driving a car that you don’t own.
What is non-owner car insurance?
A non-owner car insurance policy provides liability coverage for drivers who don’t own a vehicle, which is the minimum amount of coverage needed for car insurance. This policy will protect you if you’re held liable for injuries and property damage.
Non-owner car insurance will generally only cover the policyholder and not any additional drivers.
In some instances, non-owner car insurance may be required, which can happen when filing an SR-22 or FR-44 form.
What does non-owner car insurance cover?
If you get into an accident while borrowing a car, the car insurance policy of the owner will pay for the damage first.
But if the owner’s coverage limits aren’t enough, then your non-owner car insurance policy will cover any remaining amount, up to your policy limits.
A non-owner car insurance policy will not include comprehensive or collision coverage in the policy, which means that it will not cover the vehicle you drive after an accident.
Some insurance companies also offer other coverages, such as medical payments, personal injury protection and uninsured or underinsured motorist coverage.
Who needs non-owner car insurance?
We recommend getting a non-owner car insurance policy if you borrow cars or rent cars often or if you’re required to file an SR-22 or FR-44 form. Here are some specific scenarios:
You’re borrowing a car
If you’re borrowing someone’s car, you’re still covered under the owner’s car insurance policy. However, you can be held responsible for damage if the coverage limits of the owner’s policy aren’t enough.
Also, if you live in the same household as the owner of the car, you may be denied coverage from the owner’s insurance company. As a result, we recommend adding your name to the policy as a driver if you live in the same household as the car owner.
You often rent cars
If you’re renting a car frequently, it may be cheaper for you to purchase a non-owner car insurance policy instead of purchasing coverage from the rental company. However, you won’t be covered for damage to the rental car.
You need proof of insurance
If your license was suspended due to a DUI (driving under the influence) conviction or another violation, then you may have to submit an SR-22 or FR-44 form to get your license back.
This form is used to show proof that you have car insurance. If you don’t have a car, a non-owner car insurance policy can meet the requirements for car insurance.
Learn more about SR-22 insurance.
You temporarily don’t have a car
If you used to have a car and don’t anymore, you’ll have a lapse in coverage once you end your car insurance policy.
If you decide to drive again in the future, your car insurance premium will likely increase due to the gap in coverage. You can purchase a non-owner car insurance policy during this period to prevent your premium from increasing in the future.
How much does non-owner car insurance cost?
A non-owner car insurance policy is generally less expensive than a traditional car insurance policy but will vary.
If you have to file an SR-22 or FR-44, you will most likely pay more for a non-owner car insurance policy than someone who just needs the policy as a borrower or renter. This is because you may be considered more risky to insure.
Your insurance premium can vary based on several factors, which include:
- Your address
- Your gender and age (as younger, male drivers are seen as more risky)
- Your driving record
- Your car’s make and model
- Your coverage limits
- The insurance company
We recommend comparing quotes from several insurance companies in order to receive the cheapest rate for the coverage you need.
Which companies offer non-owner car insurance?
Many insurers do not include a non-owner car insurance policy when offering an online quote or won’t disclose the policy on their website.
However, you can contact insurance companies directly to get a quote or inquire about their policies.
If you’re already a customer with an insurance company, we recommend contacting that company first since some insurers only offer the policy to existing customers.
Here are some insurance companies that offer non-owner car insurance:
- Acceptance
- Dairyland
- Direct
- Elephant
- Freeway
- Nationwide
- Progressive