Non-Owners Car Insurance Coverage: An Expert Guide

It’s not a secret that car insurance is required in nearly every state in the U.S. You can still buy an auto insurance policy even if you don’t own a car. This policy is generally known as non-owners car insurance.

This type of car insurance meets basic state requirements and covers your vehicle’s damage and injuries to other people. Knowing what to do after a car accident can protect you. However, before committing to this coverage, there are several caveats you should be mindful of.

In this non-owners car insurance guide, we’ll explain everything there is to know about non-owners car insurance in layman’s terms.

What is non-owner car insurance?

Non-owner car insurance is a type of coverage that provides liability protection for drivers who don’t own their own vehicles. It’s usually purchased by people who borrow cars from friends or family, rent cars occasionally, or use ridesharing services like Uber or Lyft.

Though it doesn’t offer comprehensive coverage like collision and comprehensive insurance, non-owners car insurance typically includes the same basic liability protection found in traditional auto policies.

This means that if you’re involved in an at-fault accident, this policy will cover bodily injury and property damage to the other party up to your chosen limits.

Read more: Does my car insurance cover damage caused by a family member who is not listed on a policy?

How does non-owner car insurance work?

Non-owner car insurance works similarly to a traditional auto policy. When you sign up, you’ll choose a limit of coverage and pay an agreed-upon rate for that amount of protection.

If you’re involved in a covered accident, your non-owners car insurance policy kicks in and pays up to the limits of your chosen coverage. You’d be responsible for any costs exceeding those limits.

Your premium is calculated based on several factors, such as your driving record, geographic area, age, gender, and other insurance criteria. This helps determine how much risk you represent as a driver and what it would cost them if they issue an insurance policy to you.

What does non-owner car insurance cover?

Non-owner car insurance typically covers the same liabilities as a standard auto policy, such as bodily injury and property damage to another party resulting from an at-fault accident.

Most policies also include uninsured/underinsured motorist protection in case you’re involved in an accident with someone who doesn’t have insurance or has coverage that’s not adequate enough to cover your damages. 

In addition, some insurers may provide optional add-ons like medical payments or personal injury protection.

What are the best non-owner car insurance companies?

There is good news if you’re considering purchasing a non-owner car insurance policy. Most auto insurance companies provide this coverage, but which is the best option? According to our research, these car insurance companies reign supreme. You can find their annual non-owner car insurance rates below.

Monthly Non-Owner Car Insurance Rates by Company

How much does non-owner car insurance cost?

The cost of non-owner car insurance can vary greatly depending on your individual circumstances. Generally speaking, premiums are lower than a regular auto policy since you’re not responsible for the full replacement value of the vehicle.

Your premium may also depend on how frequently you borrow cars or use rental cars and whether you have any traffic violations on your record.

For example, a 40-year-old man who rents cars a few times a year but has no moving violations on his record can expect to pay roughly $250–$350 per six months for non-owner car insurance.

However, the cost could be considerably higher for someone who has multiple traffic violations. If you need more clarification on how much coverage you need or what your premium should be, it’s best to speak with an agent in order to get more accurate information.

Also, to get a better idea of how much this type of coverage will cost, contact an insurance agent for more information or use our free online comparison tool to compare car insurance rates from multiple companies in one place.

When should you get non-owner car insurance?

Non-owner car insurance is ideal if you don’t own a vehicle but drive someone else’s car on a regular basis and need protection against liabilities. It can also be a great option for those who frequently borrow or rent cars, such as college students and other young adults.

Here are some more reasons why you should consider buying non-owner car insurance.

You Need to Get Your License Reinstated After a Major Traffic Violation 

If your driver’s license was suspended due to a major traffic violation, you should buy a non-owner car insurance policy.

Read more: Can I buy car insurance without a driver’s license?

For example, if you were caught driving without car insurance and got your license suspended, this is the opportunity for you to buy a car insurance policy and reinstate it. This scenario applies if you’ve been convicted of a DUI or have to apply for an SR-22 certificate.

Read more: How to Get Car Insurance Without a License: An Expert Guide

You’re Waiting for Your New Car Insurance to Kick in

If you’re purchasing a new vehicle and need coverage before your policy kicks in, non-owner car insurance can provide a temporary solution. This type of coverage will protect you from damages while you wait for your regular policy to come into effect.

Non-owner car insurance is also beneficial if you’re moving to a different state and have yet to purchase an auto policy there.

You Don’t Own a Vehicle but Often Borrow or Rent Cars

This type of policy might be right for you if you frequently borrow vehicles or rent cars on vacation or business trips. Non-owner car insurance provides the same basic coverages as a standard auto policy but for a fraction of the cost.

Plus, you won’t have to worry about your existing policy provider raising their rates if you’re in an accident.

You Regularly Use Car-Sharing Services

If you often use car-sharing services such as ZipCar or Car2Go, it’s a good idea to get non-owner car insurance.

These types of services typically provide their own insurance coverage, but it won’t be enough in the event of an accident. Non-owner car insurance can fill the gap and protect your finances from any liabilities that may arise.

You are Borrowing a Car From a Friend or Relative

If you don’t own a vehicle but are borrowing one from a friend or relative, you’ll need to purchase non-owner car insurance. This type of coverage will protect you in case of an accident and provide financial protection for the owner of the vehicle.

You’re Temporarily Between Cars

If you’re in the process of buying a new car and don’t own one yet, non-owner car insurance can provide coverage while you wait for your regular policy to take effect. This type of policy is also ideal if you’re selling your current vehicle and do not plan on owning one for a period of time.

When should you avoid non-owner car insurance?

Non-owner car insurance is only for some. If any of these scenarios are familiar to you, consider other options.

You Live With Someone Who Owns a Car

If you live with someone who owns a car, it’s likely that their policy will cover you if you need to borrow their vehicle. Check with your insurance provider to see if this is the case and pay special attention to any exclusions or limitations on coverage.

You’re Using the Car for Business Purposes

Non-owner auto policies typically don’t provide coverage for vehicles used for business purposes. In this situation, you’ll need commercial auto insurance or an endorsement added to your existing personal auto policy.

You Use Ridesharing Services or Public Transport

If you don’t own a car and rely on public transport or ridesharing services, it’s unlikely that non-owner car insurance is worth your money. This type of coverage only applies when you’re driving an automobile that doesn’t belong to you.

You Only Drive Using Rental Cars a Few Times Every Year

If you only drive rental cars a few times every year, it might be cheaper to purchase the rental company’s insurance coverage than getting a non-owner policy. The cost of this coverage is usually included in your car rental agreement and will protect you if you’re in an accident.

What is non-owner SR-22 insurance?

Non-owner SR-22 car insurance is a type of policy that your state may require if you have been convicted of driving without auto insurance. It provides proof to the Department of Motor Vehicles that you maintain financial responsibility and are legally allowed to operate a vehicle.

This type of policy can vary depending on the state but generally includes all the same coverages as a standard non-owner policy plus the added benefit of providing proof of your coverage status.

The DMV may require a driver to keep an SR-22 certificate for up to three years, however, the non-owners policy typically lasts six months to one year. After this period, the policy can be renewed throughout the three years required.

Your state’s laws will determine if this type of policy is necessary for you, so it’s important to speak with an insurance agent or your local DMV to make sure you understand the rules and regulations.

How to Buy Non-Owners Car Insurance Coverage

Purchasing non-owners car insurance isn’t like buying traditional car insurance. To help you make an informed buying decision, here are some important considerations to make when shopping for coverage.

Decide How You Want to Buy Coverage

Non-owner auto insurance can be purchased directly from a company or an independent agent.

If you choose to buy your policy directly, make sure that the provider offers coverage in your state and has a good reputation for customer service.

If you go through an independent agent, they will be able to compare quotes from different companies and help you find the best option for your needs.

Assess Your Current Driving Situation

Before purchasing a non-owner policy, take stock of your current driving situation. How often do you drive? Does anyone in your household have a car that you can borrow? Do you plan on buying a car soon?

Answering these questions will help determine how much coverage you need and how long the policy should last.

Understand the Coverage Available

Non-owner auto insurance typically offers the same types of coverage as traditional policies, including bodily injury liability, property damage liability, personal injury protection (PIP), and uninsured/underinsured motorist protection.

Let’s discuss each type of coverage in detail:

• Bodily injury liability coverage. This coverage helps protect you if you cause an accident that results in someone else’s injuries. Learn more about the best bodily injury liability auto insurance companies. 
• Property damage liability coverage. This coverage helps cover damages to another person’s property caused by an accident you’re at fault for. 
• Personal injury protection (PIP) coverage. This coverage pays for medical bills, lost wages, and other expenses related to injuries sustained in an accident. Learn more about the best personal injury protection auto insurance companies. 
• Uninsured/underinsured motorist protection. This coverage covers damages to your vehicle if you’re hit by a driver who doesn’t have insurance or doesn’t have enough insurance to pay for the damage they caused. Learn more about the best uninsured/underinsured auto insurance companies. 

Talk to an Insurance Broker

If you still need clarification about how to buy non-owner auto insurance or what type of coverage is right for you, consider talking to an insurance broker.

An experienced broker can answer your questions and help you find the best policy for your needs. They’ll also be able to explain all of the available coverages and ensure that you understand the details of your policy before making a purchase.

The Bottom Line on Non-Owner Car Insurance

If you don’t own a car but still need auto insurance coverage, non-owner policies can be an ideal solution. This form of coverage provides the car insurance you need to comply with your state’s minimum requirements and is an affordable alternative for drivers who don’t have access to a vehicle.

Before purchasing non-owner auto insurance, make sure to understand the coverage options available and determine how much coverage you need based on your current driving situation.

If you need additional help, consider talking to an insurance broker who can answer your questions and help you find the best policy.

Case Studies: Real-Life Scenarios of Non-Owners Car Insurance Coverage

Case Study 1: Sarah’s Rental Car Accident

Sarah frequently rents cars for business trips and vacations. During one of her trips, she was involved in an at-fault accident with another vehicle. Thanks to her non-owners car insurance coverage, Sarah’s policy kicked in and covered the property damage and bodily injury expenses of the other party up to her chosen limits.

Case Study 2: John’s Temporary Coverage

John recently purchased a new car but needed immediate coverage before his regular policy took effect. He opted for non-owners car insurance as a temporary solution. When he was rear-ended by another driver, his non-owners policy protected him from the damages while he waited for his regular policy to kick in.

Case Study 3: Lisa’s Car-Sharing Service Incident

Lisa frequently uses car-sharing services like ZipCar. One day, while driving a ZipCar, she was involved in a collision. The car-sharing service’s insurance coverage wasn’t sufficient to cover all the damages. However, Lisa had non-owners car insurance, which filled the gap and provided the additional protection she needed.