Non-owner insurance provides secondary liability coverage for damages and injuries caused by drivers who need proof-of-insurance for a car they don’t own
Updated:
Nov 21, 2023
Written by:
Daniel Robinson
Daniel Robinson
Writer
Edited by:
Rashawn Mitchner
Rashawn Mitchner
Senior Editor
It’s possible (and sometimes necessary) to buy an auto insurance policy without owning a car. In this article, we at the MarketWatch Guides team will take an in-depth look at non-owners car insurance, including what is covered, how much a policy typically costs and recommendations for the best car insurance companies that sell to non-owners.
Key Takeaways:
- Non-owner car insurance is liability coverage for when you drive a car that you don’t own. It protects the owner of the car from being liable if you cause an auto accident.
- A non-owner car insurance policy meets minimum requirements for liability coverage, but does not include collision or comprehensive coverage.
- You should consider non-owner car insurance if you frequently rent cars, use a car-sharing service or drive your friend or family member’s car.
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What Is Non-Owner Car Insurance?
Non-owner car insurance provides coverage for drivers who don’t own a car but drive regularly using borrowed cars, rental cars and car sharing services. You qualify for non-owner insurance if you have a valid driver’s license and do not own a vehicle.
If you have a suspended license because of a DUI or failure to maintain insurance, a non-owner car insurance policy is an essential step toward getting your license reinstated. Combined with an SR-22 or FR-44 financial responsibility form, a non-owner policy proves that you’re serious about getting back behind the wheel.
A non-owner car insurance policy is considered a “named insured” policy. This means only the person named on the policy is covered. Many providers will not include a spouse on a non-owner policy, so be sure to clarify this with your insurance agent.
Can I Get Insurance Without a Car?
Yes, you can purchase auto insurance coverage if you don’t own a car, but need to drive another vehicle. In these instances, a non-owner car insurance policy can provide liability coverage for damages or injuries in accidents where you are the at-fault driver.
What Does Non-Owner Car Insurance Cover?
Non-owner car insurance is similar to liability car insurance. This means that it pays the cost of damages after an accident that you cause. Liability coverage does not pay for damages to your vehicle or any injuries that you or your passengers suffer. However, it will cover your court costs if you are sued.
Liability insurance types:
- Bodily injury liability: Covers medical bills and lost wages for other drivers and their passengers
- Property damage liability: Covers the cost of damages to other parties’ vehicles and property
How Does Non-Owner Car Insurance Work?
Non-owner auto insurance coverage is considered secondary coverage. If an accident is covered by multiple insurance policies, the secondary policy only pays what isn’t covered by the primary policy. For example, if you borrow a friend’s car and are involved in an accident, your friend’s auto insurance policy will pay first, and your non-owner policy will cover any remaining costs or damages beyond your friend’s liability limits.
Additionally, non-owner car insurance policies do not typically include a deductible. There are coverage limits that are determined when you purchase your policy.
What Isn’t Covered by Non-Owner Car Insurance
Although it provides basic liability coverage, non-owner car insurance may be best defined by what it doesn’t cover. Here are a few exclusions to non-owner policies you need to be aware of:
- Damage to the vehicle you’re driving: Non-owner car insurance policies don’t include collision insurance or comprehensive coverage. The owner of the vehicle you’re driving must file a claim under their own policy if there are sudden car damages you didn’t cause.
- Your injuries from an accident: It’s important to buy add-on coverages if you have a non-owner policy. Otherwise, your injuries won’t be covered.
- Additional drivers: Typically, other drivers in your household aren’t covered by a non-owner car insurance policy. Some insurers will include a spouse on a non-owner policy, but it’s up to you to verify.
- Personal possessions: Any personal belongings that are lost, damaged or stolen from a car you’re borrowing won’t be covered by a non-owner policy.
Non-Owner Car Insurance Policy Options
Some non-owner policies may offer add-on car insurance types that are often found in standard car insurance policies with full coverage, such as:
- Underinsured/uninsured motorist coverage: Covers damages to your vehicle, person and passengers if an underinsured or uninsured motorist causes an accident
- Personal injury protection (PIP): Covers your medical expenses and your passengers’ medical bills after an accident, regardless of fault. PIP also covers lost wages.
- Medical payments (MedPay): Similar to PIP coverage, but does not cover lost wages.
Do You Need Insurance if You Don’t Have a Car?
Non-owner car insurance policies aren’t for every driver. Outlined below are several situations in which you should and should not purchase non-owner car insurance.
Getting Insurance Without a Car
| You Should Get Non-Owner Car Insurance If… | Why It’s Worth It |
|---|---|
| You frequently rent cars | When you rent a vehicle, you may consider purchasing rental car insurance from your rental company. If you have your own non-owner car insurance policy, you may be able to avoid this expense. If you rent often, it may be cheaper to have your own policy. |
| You use a car-sharing service | Car-sharing services like Zipcar do provide liability coverage, but the liability limits are low. They may also include a large deductible that you would be required to pay in the event of an accident (sometimes in the thousands). If you regularly use such a service, it’s worthwhile to have your own coverage. |
| You use a business vehicle for personal errands | You may be personally liable for damages if you crash a work vehicle while using it for non-work purposes. Having non-owner insurance gives you liability protection. |
| You want to maintain continuous coverage | Failing to maintain continuous car insurance coverage can result in higher rates when you decide to buy car insurance again. If you’re between vehicles, a non-owner policy is a cheap way to maintain continuous coverage. |
| You need proof of insurance but don’t own a car | If you have your license suspended for a DUI or failure to maintain proper insurance, you may be considered a high-risk driver. In that case, you may have to file an SR-22 insurance financial responsibility form (or an FR-44 in Florida and Virginia) before your license will be reinstated. In order to get an SR-22, you will need proof of insurance, and a non-owner policy fulfills that requirement. |
You may want to skip the coverage if you find any of the following applies to you:
When You Should Not Get Non-owner Car Insurance
| You frequently borrow your friend’s car | If you frequently borrow the same person’s vehicle, you should have yourself listed on their auto insurance policy rather than purchase your own non-owner car insurance. |
| You live in a household where a car is regularly parked | Many insurers will not sell you a non-owner policy if you have regular access to a particular vehicle that belongs to someone in your household. Instead, the insurer will require you to be listed on that vehicle owner’s policy. |
| You drive a company car, but only for work purposes | If you only use your work car for work purposes, you don’t need additional non-owner coverage. |
| You own a car | If you own a vehicle, you should purchase a policy for that vehicle rather than non-owner car insurance. |
How Much Is Non-Owner Car Insurance?
The cost of non-owner car insurance varies significantly between states and providers. Your state’s minimum insurance requirements play a major role here.
In general, a non-owner policy costs less than a traditional car insurance policy. According to our market research, the annual cost of a non-owner policy can range from around $200 to more than $1,200. Typically, a non-owner policy does not include a car insurance deductible.
Non-Owner Car Insurance Quote
If you are considering purchasing a non-owner car insurance policy, we recommend comparing car insurance quotes from three or more providers. Many of the top providers and a free quote tool are included below.
Factors That Affect Non-Owner Car Insurance Costs
Like insurance quotes for your own car, non-owner insurance quotes vary depending on provider and a number of other factors, including:
- Age: Younger drivers (especially teen drivers) pay higher premiums than older drivers.
- Marital status: Single drivers pay more than their married counterparts.
- Driving record: Having a clean driving history helps you pay less for car insurance.
- Credit score: In many states, having a poor credit score means paying higher car insurance premiums.
- State: Minimum insurance requirements and regulations vary by state.
- City: The more densely populated your city, the more car accidents and insurance claims there are in a given year. Higher car insurance premiums follow.
Non-Owner Car Insurance: The Bottom Line
Purchasing a non-owner auto insurance policy can be a good idea for drivers who do not own a car. It provides you with liability coverage and the chance to buy add-on coverage like personal injury protection or underinsured/uninsured motorist coverage. Several car insurance companies offer these premiums like the ones included below.
Best Non-Owner Car Insurance
If you need to purchase a non-owner policy, you’ll have a lot of options to choose from. Most of the country’s biggest auto insurance providers offer non-owner car insurance, including:
- Allstate
- Farmers
- Geico
- Liberty Mutual
- Nationwide
- Progressive
- State Farm
- USAA
You can request free car insurance quotes from several of these providers using the tool below. Be sure to consider two insurers that topped our list of the best car insurance companies: Geico and USAA.
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Geico: Best for Budget-Conscious Drivers
Geico is one of the best-known and accessible insurers in the nation, offering some of the cheapest car insurance rates on average. In addition to its DriveEasy program that helps policyholders drive safely and save on premiums, Geico offers 16 car insurance discounts that include:
- Good student discount
- Safety feature discounts
- New vehicle discount
- Military discount
- Emergency deployment discount
- Federal employee discount
Keep reading: Geico insurance review
USAA: Best for Military Members
Drivers with USAA can often get some of the most affordable premiums in the nation — but to qualify for coverage, they have to be military members, veterans or immediate family members of USAA policyholders. USAA consistently scores high in customer satisfaction for several J.D. Power consumer studies and offers fantastic discounts, such as:
- Low mileage discount
- Vehicle storage discount
- Family discount
- Loyalty discount
- Military installation discount
Keep reading: USAA insurance review
Compare: USAA vs. Geico
Non-Owner Car Insurance: FAQ
Below are frequently asked questions about non-owner car insurance.
A non-owner car insurance policy is liability coverage for drivers who don’t own a car. Drivers who frequently rent cars or borrow their friends’ vehicles are most likely to buy it. Non-owner car insurance policies are also good options for drivers who have had their licenses suspended but need to maintain coverage.
While you don’t need to own a car outright to insure it, you cannot buy an insurance policy for a car that you don’t have a financial stake in. However, non-owner car insurance will let you insure rental cars or car-sharing vehicles while you are using them.
Geico will insure a car that’s not in your name. However, you need to be able to prove that you have some financial stake in the vehicle.
Other Types Of Insurance To Consider
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
