What is Non-Owner Car Insurance?

Cynthia Paez Bowman
Cynthia Paez Bowman

It’s normal to assume that you only need vehicle coverage if you have a car. But believe it or not, sometimes people without a car have car insurance. Known as non-owner car insurance, there are times when it may come in handy. Read on to find out why.

What is Non-Owner Car Insurance?

Non-owner car insurance provides you with financial protection regardless of the vehicle you’re driving. Anyone who has a valid driver’s license and can legally drive can buy non-owner car insurance. The coverage is typically cheaper than a standard vehicle policy. 

What Does a Non-Owner Auto Insurance Policy Cover?

If you’re considering whether non-owner auto insurance is right for you, take a look at the types of coverage included:

  • Bodily injury liability coverage: Pays for medical bills and injury-related expenses of other parties if you cause an accident. As with all types of liability insurance, the coverage does not provide you with money if you’re at fault and injured — only others.
  • Property damage liability coverage: Covers repairs and losses to property if you cause an accident while driving someone else’s vehicle. Property may include other struck vehicles, street signs, buildings and bicycles.

What’s Not Covered by Non-Owner Auto Insurance?

Not everything is covered by non-owner auto insurance. Some things non-owner insurance won’t cover include:

  • Your own injuries: If you’re hurt because of the accident you caused, non-owner car insurance won’t pay your medical bills. 
  • Damages or losses to the vehicle you’re driving: Any repairs needed on the car you’re driving will have to be claimed on the vehicle owner’s auto insurance or paid out of pocket.
  • Losses caused by others: Unless you live in a no-fault state, your non-owner auto insurance will not pay for losses in which another party is responsible. 
  • Uninsured motorists: If the other driver doesn’t have car insurance, a non-owner auto insurance policy will not reimburse you unless you’ve purchased uninsured/underinsured motorist coverage.

When Do I Need Non-Owner Car Insurance?

A non-owner insurance policy provides coverage for cars you may drive but don’t personally own. The insurance will protect you financially and add coverage against potential lawsuits for damages you may cause if you’re at fault in an accident. Some reasons you might need car insurance without a car are:

  • SR-22 required: If you were caught driving without insurance or had your license revoked after a violation such as a DUI, you’ll need insurance before you can reinstate your license, even if you don’t have a vehicle.
  • To save on rental car coverage: Occasionally, renting a car may be cheaper than outright owning one. The problem is, rental car insurance is expensive and can end up doubling your rental cost. Non-owner car insurance could be a way to avoid pricey rental car coverage.
  • You borrow other people’s cars often: If you’d rather borrow a car than own one, having non-owner car insurance that provides you with auto coverage for any car you drive may be the most responsible decision.

When You Don’t Need Non-Owner Car Insurance?

Non-owner car insurance isn’t for everyone. You will not need non-owner car insurance if:

  • You own a vehicle: The most obvious reason to skip non-owner insurance is because you own a car. You’ll need a standard auto insurance policy instead.
  • You’re driving a commercial vehicle: Trucks, vans and other work-related vehicles won’t be covered under non-owner car insurance and typically come with coverage through the business.
  • You live with the person you’re borrowing a car from: If you’re a member of the household of someone who owns a car, you can borrow it and receive the same kind of coverage they would.

How to Shop for a Non-Owner Car Insurance Policy

Finding the best non-owner car insurance policy takes some research and consideration. Fortunately, this type of coverage is extremely simple to qualify for. And if you’re in a rush to get coverage, you’ll be glad to know that you can be insured in minutes. Follow these simple steps: 

  • Compare policies: As with all types of insurance, it’s best to shop around for the cheapest auto insurance. You may find a better deal with a different insurance company.
  • Provide your driver’s license: The only document you’ll need to get coverage is a valid driver’s license. If you can legally drive, you can get coverage. 
  • Pay for coverage: All that’s left to do is pay for coverage and you should have insurance almost instantly. Many insurance carriers allow you to pay with a debit or credit card.

To compare rates for the best non-owner insurance coverage, check out the following auto insurance companies:

ProviderPhone number
State Farm800-782-8332
The General844-328-0306

How much is non-owner car insurance? 

Car insurance without a car is typically cheaper than a standard car insurance policy. You can expect to pay an average of $474 per year. As with all insurance, there are many factors that affect the cost of insurance, so it’s important to compare car insurance coverage. The following factors may affect your cost: 

What’s next?

About the Authors

Cynthia Paez Bowman is a contributing writer for Reviews.com. Over the last two years, she has covered insurance, home security and more. She has been featured in MSN, Bankrate, Coverage.com, The Simple Dollar and GOBankingRates. She has dual bachelors degrees in International Business and Journalism from American University in Washington, D.C. “Is It Getting Harder to Get Home Insurance in High-Risk Areas?” is Cynthia’s favorite story on Reviews.com.