Do You Need Non-Owner Car Insurance? (2023)

Rent cars often? Borrowing a friend’s ride? Since driving your car without car insurance is illegal, you may be wondering what the insurance requirements are when you end up having to drive a car that isn’t yours. The answer to your dilemma is non-owner auto insurance.

While buying insurance can feel intimidating, it doesn’t have to be. Insurify can help you compare car insurance quotes with the right coverage options instantly. Auto insurance rates can be impacted by any number of factors: your driving history, your age, and even where you live. Compare quotes from top companies to find the best rates for your needs today.

Why buy non-owner car insurance?

It’s important to understand that a standard policy for non-owner insurance only provides liability coverage for the policyholder. It does not provide full coverage like collision and comprehensive insurance—you will need to be on the car owner’s policy for that type of coverage or carry other types of insurance for the car you’re driving.

Non-owner car insurance policies typically only cover the cost of any property damage you cause or bodily injuries to other people in the accident, but they won’t cover your passengers, yourself, or your car. When you buy this type of insurance, you will have the minimum coverage amount required by your state but can choose higher minimums to provide extra protection.

An added bonus is that non-owner policies count as continuous coverage, meaning if you get your own car in the future, you will not get stuck with a much higher premium when you cancel. In some states, you may need to be insured on the car owner’s policy for their specific vehicle instead of having non-owner car insurance coverage.

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Non-Owner Car Insurance Coverage Inclusions

• Liability coverage for property damage and injuries you cause to others

• Uninsured motorist and/or underinsured motorist coverage

• Medical payments or personal injury protection (PIP)

One thing to remember: If a family member in your household owns a vehicle and you end up driving it without having your own auto insurance policy, you will need to be listed on the auto policy as an insured driver.

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Who Needs Non-Owner Insurance Coverage

There are several situations where it makes sense to purchase a non-owner car insurance policy and other situations where you may already have coverage. These might include:

• Driving a rental car frequently without rental car insurance coverage through the rental company or your credit card company.

• Driving a friend’s car on more than one occasion (perhaps you have regular access to their vehicle), a road trip, or other reasons. Having non-owner car insurance will protect your friend’s car and ensure you are protected if you cause property damage.

• Wanting to save money on a rental car by not having to pay for extra insurance coverage.

• Protecting your driver risk status when driving someone else’s vehicle.

• Preventing a lapse in car insurance coverage. A lapse in coverage could lead to higher insurance premiums in the future and even being denied coverage.

• Filing to get your driver’s license reinstated. If you end up needing an SR-22 filed on your behalf to act as proof of insurance, you might consider picking up this type of policy.

• Using any type of car-sharing service. Some cities have well-established car-sharing services that make it easier to travel without owning a car. However, this can also increase the risk of getting into an accident. If you plan on using any of these services, you’ll need a non-owner policy to provide liability protection and to supplement the liability insurance coverage the car-sharing service provides.

• Having protection from uninsured drivers. If you live in an area replete with high-risk drivers, this could be even more important. If you are driving someone’s car and someone else causes an accident, you are covered for bodily injuries (which helps with medical bills) and property damage liability of the vehicle.

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How to Buy Non-Owner Car Insurance

Most car insurance companies don’t offer a quote for non-owner car insurance online because it’s a specialized type of insurance policy. You may need to call an insurance agent directly to get a quote or visit a local office to purchase a non-owner auto insurance policy.

Car insurance providers with non-owner car insurance policies:

• GEICO

• State Farm

• Dairyland

• Kemper

• The General

• Direct Auto

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Cost of Non-Owner Car Insurance

It’s interesting to note that non-owner policies are usually less expensive than owner coverage and standard car insurance policies. This is because they provide far less coverage and low coverage limits and you would end up paying a lot more out of pocket in the event of an accident. It wouldn’t pay for any vehicle repairs or to replace the vehicle if the car was totaled.

Another reason these types of policies are less expensive is that insurance companies assume you won’t be driving the vehicle frequently or for long periods of time. Since there’s less of a risk of you getting into an accident and there is no comprehensive coverage, the insurance company is willing to take a chance on you.

A bonus to note is that non-owner auto insurance policies typically have no deductible, meaning the coverage will kick in without you having to pay any money yourself.

One thing to remember when applying for non-owner car insurance is that you can’t hold this policy if you technically have access to a car where you are already insured on a policy. For example, if you live with your parents or with a roommate who has a car and you drive the car occasionally, you wouldn’t be eligible for a non-owner policy.

The Bottom Line on Non-Owner Car Insurance Coverage

Getting a non-owner insurance policy is a smart move when you don’t have access to a car and are using someone else’s car—not a family member’s or roommate’s car—more than a few times on a temporary basis. It gives you some peace of mind knowing that you will have some protection in the event of an accident with an uninsured motorist.

However, a non-owner insurance policy is very limited in scope and is best used in less serious accidents or incidents. Premiums and coverage amounts are lower than traditional policies. Compare auto insurance quotes from multiple top insurance companies on Insurify to secure the best cheap car insurance for your unique driver profile.