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Nerdy takeaways
- Non-owner car insurance is a good option if you don’t own a vehicle but regularly borrow or rent other people’s cars.
- Non-owner car insurance can also come in handy if you don’t have a car but need to file an SR-22 form with your state.
- If you only borrow or rent a car a handful of times throughout the year, or if you borrow a car from someone you live with, you probably don’t need non-owner car insurance.
Just because you don’t have a car doesn’t mean you don’t need car insurance. If you cause an accident while driving someone else’s vehicle, you may need non-owner car insurance to help pay for any damage or injuries you cause.
What is non-owner car insurance
Non-owner car insurance is a type of policy you can get even if you don’t own or lease a vehicle. It only applies if you cause an accident and the vehicle owner’s policy won’t cover you, or if their policy’s coverage limits are too low to pay for damage and medical bills you cause.
If you borrow a friend’s car and cause an accident, the owner’s insurance will likely cover both the driver and the car. However, some insurers may not cover drivers who aren’t named on the policy. And even if your friend’s policy does cover you, it may not have enough coverage to pay for all of the damage you caused, which still leaves you at risk if you don’t have non-owner insurance.
Non-owner coverage may include:
- Liability insurance, which pays for injuries or property damage you cause to others.
- Uninsured motorist protection, which pays for your injuries after an accident caused by a driver without insurance.
- Underinsured motorist protection, which pays for your injuries if you’re hit by a driver without enough liability coverage to pay for your expenses.
- Medical payments or personal injury protection, which pays for your injuries no matter who caused the accident.
Non-owner coverage doesn’t include:
- Collision insurance, which pays to repair the vehicle you were driving if you cause an accident.
- Comprehensive insurance, which pays to repair the vehicle you were driving if it’s damaged by events like a hail storm or hitting a wild animal.
- Extended coverage for anyone else driving the car instead of you, such as a spouse or roommate.
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Non-owner car insurance vs. permissive use car insurance
Most auto insurance policies will cover the policyholder and anyone else listed on their policy, including spouses, children or roommates. But coverage can also extend to other people that the policyholder allows to drive their vehicle. This is called permissive use car insurance.
While it might seem easier to skip insurance and rely on someone else’s policy, the details of permissive use car insurance can vary. Some policies don’t cover relatives or roommates, while others offer reduced coverage to drivers who aren’t named on the policy. So if you drive someone else’s vehicle often, you should ask to be added to their policy just in case.
🤓 Nerdy Tip
Car insurance policy details can vary by state and insurance company, so you should always ask someone if you’re covered by their insurance before you drive their car. It’ll probably be easier for you to double-check an insurance policy than to pay tens of thousands of dollars if you cause an accident without coverage. Who needs non-owner car insurance?
A non-owner auto insurance policy may not be necessary in every situation, but there are a few scenarios where it can be valuable.
You often borrow other people’s cars. Car insurance follows the car in most cases, so the owner’s vehicle should cover you if you cause an accident. But if repair costs exceed the owner's liability limits, you’re responsible for the rest. For example, if you cause an accident while driving a friend’s car and the other driver has $35,000 in medical bills but your friend’s policy only has $25,000 of bodily injury liability coverage, you’re responsible for the remaining $10,000. A non-owner policy could cover that.
You rent cars frequently. You’re required to have liability coverage to rent a vehicle, and non-owner insurance might cost less than regularly buying a rental company's liability coverage. This type of policy typically won’t cover damage to the rental car, but you may be able to get that coverage through a credit card or from buying the rental car company’s collision damage waiver.
You frequently use a car-sharing service. Car-sharing services such as Zipcar and Turo offer some coverage for drivers, but it’s often just enough to meet your state’s minimum requirements. If you cause an accident, costs could easily exceed the minimum limits. A non-owner policy can supplement this coverage.
You need an SR-22 or FR-44 form. Your state may require either an SR-22 or FR-44 to reinstate your driver’s license after a serious conviction like a DUI. Insurers file these forms on your behalf to prove that you have at least the minimum amount of insurance coverage mandated by your state. If you don’t own a vehicle, a non-owner car insurance policy might be enough coverage to file an SR-22 or FR-44.
You want to maintain continuous coverage. Going without auto insurance makes you look risky in the eyes of insurers, leading to higher rates. So it may be cheaper to buy non-owner insurance rather than skip coverage if you’re in between cars.
🤓 Nerdy Tip
Most states require a certain amount of liability insurance, so non-owner car insurance typically includes your state’s minimum required insurance. However, we recommend getting higher coverage limits if you can. Only carrying the minimum insurance may not be enough to cover serious accidents, and you’re responsible for anything above those coverage limits. Who may not need non-owner car insurance?
There are a few scenarios where you may not need a non-owner policy even if you borrow or rent cars.
You typically borrow a car from someone in your household. If the vehicle you drive belongs to someone you live with and their policy extends to people in their household, you may be listed as a covered driver. However, this can vary depending on where you live and which insurance company your household uses.
You regularly borrow the same car from someone you don’t live with. Car insurers may require customers to include anyone who regularly drives their vehicle on their policy, regardless of whether they live together. If you frequently borrow your neighbor’s car, or if you’re a nanny who drives your client’s car to run errands, you may already be covered under the owner’s policy.
You often drive a company car. If you drive a business-owned vehicle, the company’s commercial auto insurance policy should cover you — even when you drive the vehicle for personal uses. But coverage varies by state and company, so make sure your employer has commercial auto insurance and it covers personal use.
You drive rarely or not at all. If the extent of your driving is renting or borrowing a car a couple times a year, non-owner car insurance might not be worth the expense. It may be cheaper to simply buy insurance at the rental counter or rely on permissive use car insurance through your friend’s policy to cover you if you cause an accident.
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
Non-owner car insurance cost
Typically, a non-owner car insurance policy costs less than traditional auto insurance. But if you need your insurer to file an SR-22 or FR-44 form, or if you want increased coverage limits on your policy, your costs will likely be higher.
Your driving history affects the cost of your insurance even though a non-owner policy is different from a traditional one. Other factors that affect car insurance rates can include your age, location and insurance history.
Where to buy non-owner car insurance
We’ve verified that a few of the best auto insurance companies offer non-owner auto insurance:
| Company | Call for a quote |
|---|---|
| Speak with an agent at 800-207-7847. | |
| Find a local agent or call 800-782-8332. | |
| Start a quote online or call 888-645-4940. |
Based on our research, many insurers don’t advertise non-owner care insurance policies on their website. You’ll need to speak with an agent to find out if you can get a policy.
Frequently Asked Questions
Can you get insurance without a car?
Yes, you can get auto insurance coverage even if you don’t own or lease a vehicle. Non-owner car insurance is an option for drivers who rent or borrow cars often. This type of policy should include enough coverage to meet your state’s minimum requirements.
Can I insure a car not in my name?
No, you can’t insure someone else’s vehicle in most cases. Some states even require the name on the insurance policy to match the name on the vehicle registration.
You can get a non-owner policy to insure yourself if you cause an accident driving a vehicle you don’t own. This type of insurance won’t cover damage to the car you’re driving or your own medical bills if you cause the accident, however.
Does non-owner car insurance include a deductible?
In most cases, non-owner car insurance won’t include a deductible. A deductible is an amount you agree to pay towards an insurance claim while the insurance company covers the rest, up to your policy’s coverage limits.
Which insurance companies offer non-owner car insurance?
You can buy non-owner car insurance from State Farm, GEICO and Travelers in certain states. Other companies may offer this sort of policy, but many large insurers don’t advertise it on their websites.
Companies that cater to high-risk drivers — such as Acceptance, Dairyland and Direct Auto — also sell non-owner insurance.
Does non-owner car insurance cover rental cars?
The liability insurance on your non-owner policy will probably cover injuries you cause to other people and damage you do to their property while driving a rental car. But because non-owner policies don’t include comprehensive or collision coverage, they won’t pay for damage you might do to the rental car itself. For this, you should check whether your credit card provides coverage or purchase the rental car company’s collision damage waiver.
