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Non-owner car insurance is car insurance for drivers who don’t own a car. It provides liability protection if you cause an accident while driving a car that isn’t yours.
For example, a non-owner policy may work for you if your roommate or family regularly lets you borrow their car. You may also need non-owner insurance to maintain legally required coverage if you have a suspended license.
The vehicle owner’s insurance still pays for the damages you cause in a car accident. But if their insurance doesn’t cover everything, your non-owners insurance acts as secondary coverage, helping to pay the remaining amount.
Find the right coverage at the best price in the Hoosier State
Indiana doesn’t require drivers to have non-owner auto insurance. But the state requires all vehicle owners to have liability insurance coverage.
Minimum liability coverage requirements in Indiana include $25,000 per person and $50,000 per accident of bodily injury liability coverage, as well as $25,000 of property damage liability coverage.[1] You should keep these minimum coverage amounts in mind when shopping for non-owner car insurance.
For example, let’s say your friend has only minimum liability coverage, and you cause an accident while driving their car that results in $40,000 in property damage. Their insurance would cover only $25,000 in damages, so you’d need a non-owner policy to avoid paying anything out of pocket.
Indiana state law doesn’t require you to have non-owner car insurance. But having it might make sense in some scenarios, including:
You use rental companies frequently. If you regularly rent cars or use a car-sharing service, you might consider a non-owner car insurance policy instead of purchasing rental car insurance each time.
You want to maintain continuous coverage. Insurance companies often charge higher rates if you have a gap in coverage. With a non-owner policy, you can maintain continuous coverage even if you don’t own a car or you have a suspended license.
You want extra protection. If you regularly borrow cars from friends, you might consider a non-owner policy for extra protection and peace of mind. If you cause an accident with damage that exceeds your friend’s coverage limits, your non-owner policy kicks in to help cover the remaining costs.
If the state of Indiana suspends your driver’s license due to driving without insurance or a driving under the influence (DUI) conviction, you may have to file an SR-22.
An SR-22 form provides proof that you meet Indiana’s minimum liability coverage limits. If you don’t own a car, a non-owner auto insurance policy can help you meet the SR-22 requirement.
In Indiana, you have to maintain SR-22 insurance for at least 180 consecutive days. If you cancel your non-owner policy or your coverage lapses, the state can suspend your driving privileges until you file an SR-22 with the Indiana Bureau of Motor Vehicles (IBMV).
Having an SR-22 form on your driving record can increase your insurance premiums, as insurance companies consider you a high-risk driver. Insurers charge higher rates to offset that risk.
If you need an SR-22, you can ask your car insurance company to file one for you. Not all insurance companies offer SR-22 certificates, so you may need to shop around if your current insurer doesn’t file them.
Save money on your next policy, even with a less-than-perfect record
The average non-owner car insurance policy costs $31 per month in Indiana, according to Insurify data. Indiana’s non-owner rates are typically lower than in Illinois, where average premiums are $38 per month.
Since non-owner car insurance provides only liability coverage for injuries and property damage you cause to others in an accident, it’s typically cheaper than standard liability or full-coverage policies. Average liability-only rates in Indiana are $65 per month, and full-coverage policies are $128 per month.
Like standard policies, non-owner car insurance premiums can vary based on factors such as your age, location, and driving history.
The following table shows the average monthly cost of non-owner car insurance in Indiana and the U.S.
Non-Owner Car Insurance  | Average Monthly Cost |
|---|---|
| Indiana average | $31 |
| National average | $46 |
Follow the steps below to get a non-owner car insurance policy in Indiana:
Compare insurance companies. Not all insurance companies offer non-owner policies. Comparing multiple insurers helps you find the coverage you need at the best price. Your options may be more limited if you need an SR-22 form, as not all insurance companies in Indiana offer SR-22 filings.
Choose coverage limits. Once you select an insurance company, you can apply for a policy and choose your coverage limits. You can stick with Indiana’s minimum coverage requirements or choose higher coverage limits for more protection.
Purchase a policy. After your insurer approves your application, all that’s left to do is pay for your policy. If you need an SR-22 certificate, keep your policy active to avoid a lapse. Letting your policy lapse can result in the state suspending your license.
If you regularly borrow your friend’s car or have to rent vehicles for work, you might consider a non-owner car insurance policy in Indiana. Here’s some additional information that can help you find the right non-owner policy.
The average cost of a non-owner car insurance policy in Indiana is $97 per month. Factors such as your age, deductible, ZIP code, and the coverage you choose can affect your car insurance rates.
No. You can’t insure a car you don’t own in Indiana. But if you need coverage, you can get car insurance even if you don’t own a car with a non-owner insurance policy. Non-owner policies apply to the driver rather than a specific vehicle. That means your non-owner coverage applies whether you’re driving a family member’s car or a rental vehicle.
Indiana law requires all drivers to have at least $25,000 per person and $50,000 per accident of bodily injury liability coverage, as well as $25,000 of property damage liability coverage. New liability policies in Indiana must also include uninsured/underinsured motorist (UM/UIM) coverage, but you can reject this coverage in writing.
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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7+ years in personal finance writing
Certified Financial Education Instructor
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