Non-Owner Car Insurance and How to Get It
- Non-owner car insurance covers people who don’t own a car.
- A non-owner policy has the basic coverage you need to drive legally.
- Non-owner insurance can also help if you have SR-22 requirements.
What is non-owner car insurance?
Non-owner car insurance is for drivers who don’t own a car. It provides the minimum insurance coverages you need to drive legally.
You don’t always need insurance if you don’t own a car, but a non-owners policy can come in handy if you:
- Often rent or borrow other people’s cars
-
Need SR-22 insurance
SR-22 insurance proves you have at least the minimum amount of liability car insurance after receiving a license suspension.
- Recently sold a car and plan to buy another one soon
What does non-owner car insurance cover?
Non-owner auto policies typically cover your liability
However, you typically can’t add collision
Non-owner insurance coverage
| Covered | |
|---|---|
| Injuries to others from an accident you caused | Yes |
| Damage to other people’s cars and property from an accident you caused | Yes |
| Damage to a car you drive | No |
How does non-owner car insurance work?
Non-owner car insurance typically acts as secondary coverage for cars you borrow or rent. The car owner’s policy usually covers the initial liability costs from an accident, but once it reaches its limit, your policy kicks in.
But don’t forget that a non-owner policy only covers you, not others in your family or home, and that it doesn’t pay for damage to the vehicle you drive.
If a friend lets you borrow their car, their insurance usually covers you, and the bodily injury liability
A non-owners policy doesn’t cover damage to the car you were driving. Instead, your friend’s collision coverage pays for the repairs, if they have it on their policy.
How much does non-owner car insurance cost?
Non-owner car insurance costs an average of $57 a month for drivers with a clean driving record. The average rate climbs to $87 a month after a DUI (driving under the influence).
Non-owner car insurance tends to cost less than standard car insurance because it usually provides less coverage. The actual price you pay depends on factors like your driving record, location, and — in most states
Not all car insurance companies advertise non-owners policies, but many do have them. If you’re an existing customer, ask your insurer if it offers non-owner insurance. And be sure to compare quotes from insurance companies with cheap liability coverage.
If you haven’t had insurance for a while, you may need to turn to a non-standard car insurance company. These companies insure some drivers that others consider too risky. Examples include Bristol West, Dairyland and The General.
When is non-owner car insurance worth getting?
If you borrow cars a lot
A non-owners policy gives you an extra layer of protection for cars you borrow. Even though the car owner’s insurance is primary, you may not know how much coverage they have. With non-owner liability insurance, you’re protected if the owner’s coverage falls short.
If you rent cars a lot
Rental cars usually come with some liability protection, but usually only at minimum state limits. You may not have enough coverage if you’re at fault in an accident.
You can usually get extra liability protection from the rental agency at a daily rate, but non-owner insurance might be cheaper if you rent cars often or drive other vehicles besides rentals.
Also, be aware that if your credit card offers protection for rental cars under what’s called a “collision damage waiver,” or CDW, it will only cover damage to the vehicle you drive, not injuries and damage to others.
If you use a car-sharing service
Car-share companies like Turo and Zipcar also provide minimal liability coverage with their cars. You can get extra liability for a fee, along with protection for vehicle damage, but getting your own non-owner insurance policy may be a better choice if you also drive other cars.
If you need insurance for an SR-22
If your license was suspended, a non-owners policy usually meets the insurance requirement for an SR-22 certificate. This, in turn, lets you drive cars you borrow or rent during your filing period, which usually lasts about three years.
As an alternative, you could wait until you buy a car to get insurance. However, you won’t get your license back to drive borrowed or rented cars until then.
Note that in Florida and Virginia, a non-owner policy usually also meets the insurance requirements for an FR-44 certificate
If you want to keep your insurance rate low
Having continuous car insurance can make it cheaper to get car insurance in the future. Many companies consider you riskier to insure if you’ve had recent lapses in your insurance.
Some companies will charge you a higher rate if you were recently uninsured, and some may not insure you at all. By keeping yourself insured, a non-owners policy makes it easier to get affordable coverage for your next car.
When is non-owner car insurance not worth getting?
There are some situations where non-owner car insurance may not be your best choice.
- If you borrow a car from someone you live with, they usually need to add you to their policy anyway. This can apply to a parent, spouse/partner or roommate.
- A personal non-owners policy usually doesn’t cover you when you drive for business. If you drive a company car, you may need to be added to your employer’s commercial auto policy.
- If you only drive a few times a year, the benefits of non-owner car insurance may not be worth the price.
Frequently asked questions
Yes. Many companies offer non-owner car insurance to drivers who don’t own a car. But know that these policies usually only provide the basic coverages you need to drive legally.
Not necessarily. If someone lets you borrow their car, and you have a valid driver’s license, you’re usually covered by their insurance. However, they may need to add you to their policy if you live with them.
Insurance companies usually require the vehicle owner to be on the vehicle’s insurance policy. A non-owner policy only gives you liability coverage for damage you cause to others, not damage or theft coverage for the cars you drive.