What Is Non-Owner Car Insurance and Who Should Consider It?

Whether you're renting vehicles for business trips, borrowing a friend's car, or driving for work, you could be exposed to significant financial risk without proper insurance coverage.

Non-owner car insurance fills this gap by providing liability protection when you drive vehicles you don't legally own. Unlike traditional auto insurance that covers a specific vehicle, this policy follows you as the driver.

This guide will walk you through how non-owner insurance works, who needs it, and how to find the right policy for your situation.

What is Non-Owner Car Insurance?

Non-owner car insurance is liability coverage that protects you when driving vehicles you don't own. This includes rental cars, borrowed vehicles from friends or family, and cars you use for work purposes, like rideshare driving.

The policy covers property damage and bodily injury you cause to others in an accident. It may also include medical payments coverage or personal injury protection for your own medical expenses.

"Non-owner auto insurance is similar to standard liability coverage, except the premiums aren't based on a specific car," explains Melanie Musson, an auto insurance expert. Instead, rates are calculated based on your age, location, driving history, and chosen coverage limits.

Since non-owner policies don't cover physical damage to a specific vehicle, they're significantly cheaper than traditional auto insurance, typically costing $200-$500 annually compared to over $1,000 for standard coverage.

Who Needs Non-Owner Car Insurance?

There are several situations in which non-owner car insurance is worthwhile, including:

• You borrow cars regularly: A non-owner auto policy can protect you if you drive someone else's vehicle on an occasional basis. This includes babysitters who drive families' cars, college students using their parents' vehicles during visits, or employees who drive company cars.
• You rent vehicles often: If you rent cars frequently for business or pleasure, non-owner auto insurance may be a good fit. "Organized car-sharing sites and rental agencies have insurance available, but you could use your non-owner policy as a substitute in some situations," explained Musson. Non-owner insurance may save you some money.
• You need SR-22 insurance: To fulfill an SR-22 filing requirement after a serious traffic violation, such as a DUI or reckless driving, you must show proof of insurance, even if you don't own a car. "A non-owner policy will allow you to do this," said Musson.
• You want to maintain continuous coverage: Gaps in coverage can lead to higher car insurance rates down the road. Non-owner car insurance is a great way to keep your insurance intact if you're between cars and have been insured for quite some time.
• You're an international driver: Foreign visitors driving in the US temporarily—such as students or business travelers—need liability protection that non-owner insurance provides.
• Your car is in storage: Even if you don't use your vehicle because it's in storage, a non-owner policy can be a smart investment. Without it, you may be on the hook for damages related to non-collision events like car theft and falling objects.

Who Doesn't Need Non-Owner Car Insurance?

You can skip non-owner auto insurance in these situations:

• You own a car: If you already own and insure a vehicle, non-owner coverage doesn't apply to you. This type of policy is specifically designed for people who don't have their own cars.
• You're already covered on someone else's policy: "If you're part of the same household as someone who owns a car, you can be added as a driver to their policy and won't need a non-owner policy," advises Musson. This commonly applies to spouses, children living at home, or other family members sharing coverage.
• You don't drive at all: Non-owner insurance is unnecessary if you rely entirely on public transportation, ride-sharing services, or other alternatives. If you never get behind the wheel, you don't need this coverage.

What Does Non-Owner Car Insurance Cover?

Non-owner car insurance includes several types of car insurance coverage, but focuses on liability protection:

• Bodily injury liability: Covers medical expenses, lost wages, and legal fees if you injure someone in an accident
• Property damage liability: Pays for damage you cause to other vehicles or property
• Uninsured/underinsured motorist coverage: Protects you if hit by a driver with insufficient insurance (available with some policies)
• Medical payments coverage: Covers your medical expenses regardless of fault (optional with some insurers)

"If you cause a crash, the policy will cover the property damage you cause as well as your liability for injuries as a result of the crash," explains Musson.

What’s Not Covered by Non-owner Car Insurance?

Non-owner policies don't include collision or comprehensive coverage for the vehicle you're driving. You also won't get reimbursement for towing, rental cars, or damage to the car itself.

How Much Does Non-Owner Car Insurance Cost?

Non-owner policies cost significantly less than standard car insurance. "This is because people who borrow cars tend to drive less frequently than people who own cars. The more you're on the road, the higher your risk, and the higher your premiums," clarifies Musson.

Several factors affect your rates:

• Your state's insurance costs
• Your driving record and history
• Coverage limits you choose
• Your age and location

Annual premiums typically range from $200 to $500. Get quotes from at least three insurers to find the best rate for your situation.

Where to Buy Non-Owner Car Insurance

Most major insurance companies offer non-owner policies, including providers you may already use for other coverage. Shopping around lets you compare rates, coverage options, discounts, and customer service.

Many insurers offer free online quotes, or you can work with an agent for personalized guidance. Before finalizing any policy, carefully review the terms to understand exactly what's covered and what's excluded.

Frequently Asked Questions

1. Can you get car insurance without a car?

Yes, you can get car insurance without owning a vehicle through non-owner auto insurance. This coverage is specifically designed for people who drive but don't legally own a car, protecting you from financial liability when driving borrowed or rental vehicles.

2. Do I need non-owner car insurance?

You need non-owner car insurance if you frequently rent cars, regularly borrow vehicles from others, need to maintain an SR-22 filing, or want to keep continuous coverage while between cars. If you never drive or are already covered on someone else's policy, you don't need it.

3. How much is non-owner car insurance?

Non-owner car insurance typically costs $200 to $500 annually, significantly less than traditional auto insurance. Your exact rate depends on your location, driving record, coverage limits, and chosen insurer. The lower cost reflects that non-owner drivers typically spend less time on the road.