Not everybody has a car, but everybody drives every now and then. If you often rent vehicles, borrow somebody’s car, or require proof of insurance to keep your driver’s license active, non-owner car insurance can be very useful.
This kind of policy is for individuals who do not have a car but still require liability coverage while driving. In this article, we will describe what non-owner car insurance is, who requires it, how it operates, and how to obtain the best policy.
What Is Non-Owner Car Insurance?
Non-owner car insurance is a liability-only policy that pays for individuals who drive but do not own a car. It pays for bodily injury and property damage if you get into an accident while driving someone else’s car and you don’t own that car.
But this policy does not pay for:
Damage to the car you are driving
Your medical bill
Comprehensive or collision coverage
Basically, non-owner car insurance shields you from financial responsibility but not the car.
Who Needs Non-Owner Car Insurance?
Non-owner car insurance is not for every person, but it can be beneficial in specific situations. The following are the groups of individuals who can benefit from this policy:
- People Who Often Rent Cars
If you regularly rent cars, non-owner car insurance is a cheap option to pricey rental agency insurance. Rental companies provide liability coverage, but their policies are not cheap. A non-owner policy will give you the same liability coverage for less money. - Those Who Borrow Cars Regularly
If you frequently borrow a car from a friend or family member who is not a resident of your household, non-owner insurance can also be an added protection. Although the owner of the car’s insurance typically covers infrequent drivers, his or her policy may not guarantee sufficient liability coverage in the event of a severe accident. - Individuals Who Require Proof of Insurance for Reinstatement of License
If your license was suspended for DUI, reckless driving, or not having insurance, you might be required to file an SR-22 or FR-44 form in order to get your driving privilege back. Several states ask for proof of insurance, and non-owner car insurance can meet that requirement. - Individuals Using Car-Sharing Services
Drivers who use Turo, Zipcar, or other car-sharing services regularly might want extra liability coverage. These services do provide some insurance, but their coverage could be lacking or have high deductibles. A non-owner policy can be used as extra protection. - Individuals Who Are Between Cars
If you’ve sold your vehicle or are holding off to purchase a new one, a non-owner policy can have constant insurance coverage so that your policy doesn’t lapse and potentially raise your premiums down the line. - Individuals Who Desire Additional Liability Protection
Even though you may rarely drive a corporate car or loaner vehicle, a non-owner policy can cover additional liability limits when the underlying policy is inadequate.
What Non-Owner Car Insurance Covers
- Liability Coverage
Non-owner insurance mainly offers liability coverage, which encompasses:
Bodily injury liability – Pays for medical bills of other individuals hurt in an accident you have caused.
Property damage liability – Pays for repair of other cars or property damaged in an accident.
- Uninsured/Underinsured Motorist Protection (Optional in Some States)
If you are struck by an uninsured or underinsured driver, this coverage pays for your costs.
This is not a feature of all non-owner policies, so contact your insurer. - Medical Payments Coverage (Optional in Some States)
Pays for your medical bills following an accident, whether or not you are at fault.
Not offered in all states.
???? What It Does NOT Cover:
Collision and comprehensive coverage – Does not cover damage to the car you are driving.
Personal injury protection (PIP) – Generally not included.
Rental car damage – Might not cover rental car damage unless the policy says it does.
How Much Does Non-Owner Car Insurance Cost?
Non-owner car insurance is less expensive than regular auto insurance because it covers only liability. The price varies depending on various factors, such as:
Your driving record – Your rates will be lower if you have a clean record.
Where you live – Insurance rates differ by state and city.
How much you drive – The more you drive, the greater the risk.
Your liability limits – Higher liability limits cost more.
???? Average cost
Non-owner car insurance ranges from $200 to $600 per year.
If you require an SR-22 or FR-44, prepare to pay $500 or more annually because of the high-risk designation.
Where to Purchase Non-Owner Car Insurance
Not all insurers provide non-owner policies, but coverage can be obtained from:
Large Insurance Companies – Insurers such as State Farm, GEICO, Progressive, and Nationwide sell non-owner car insurance.
Independent Insurance Agents – Agents can guide you through comparing policies from various providers.
Online Insurance Marketplaces – Sites such as The Zebra or Policygenius enable you to compare non-owner insurance quotes.
Before buying a policy, compare the quotes of several providers to get the best value.
How to Obtain a Non-Owner Automobile Policy
Obtaining a non-owner policy is a cinch and very much like purchasing standard car insurance. Here’s what to do:
Determine Your Coverage Needs
Decide on the amount of liability protection you require.
If your policy is necessary to file for an SR-22 or FR-44, ensure that it adheres to state standards.
Quote Comparisons
Secure a minimum of three quotations from various providers.
Seek any discount options that might reduce your premium.
Personal Info Provision
Your driver’s license number, location, and record will be needed by you.4️⃣ Purchase
After you decide on a supplier, sign up and make an initial payment.
If you require SR-22/FR-44 filing, your insurer will do the form on your behalf.
5️⃣ Keep Continuous Coverage
Have your policy continuous so that there will be no lapse in coverage which can result in higher insurance charges in the future.
Pros and Cons of Non-Owner Car Insurance
Pros
Offers liability protection in case you drive but don’t own a vehicle.
Ensures SR-22 or FR-44 requirement for reinstating a license.
Less expensive compared to standard auto insurance.
Has uninterrupted coverage history, avoiding rate hikes down the road.
May be purchased as additional coverage for rented vehicles and borrowed cars.
Cons
Does not pay for repairs to the vehicle you’re operating.
Not readily available – Not all insurance providers provide it.
No coverage at all for personal injuries unless added specifically.
Not required if you don’t drive much.
Conclusion
Non-owner auto insurance is an excellent choice for those who occasionally drive a vehicle but do not own one. It offers liability coverage if they get into an accident and will assist drivers in satisfying state mandates for SR-22 or FR-44 filings.
If you regularly rent vehicles, borrow cars, or must keep insurance coverage, a non-owner policy is probably the best option. Compare rates from several insurers before buying to get the best coverage at the lowest cost.