A Non-Owner Car Insurance: How Much Does It Cost? 

A non-owner car insurance policy might cost less than a rental company’s liability insurance. Plus, when you decide to buy a car, having this coverage might earn you a continuous coverage discount on regular auto insurance. Considering the insurance? This article explains how it functions and when it’s beneficial to get it.

Key Takeaways 

  • Consider non-owner car insurance if you often borrow or rent cars but don’t own one.
  • It’s useful if you need to submit an SR-22 form to the state but don’t have a car.
  • If you rarely borrow or rent cars, or use a car from someone in your household, you likely don’t need this insurance.

What Is Non-Owner Car Insurance?

Non-owner car insurance is for people who don’t own a car but still need insurance. Think of it like this: if you often rent cars or have to show you have car insurance for some reason, this is for you.

What Is Non-Owner Car Insurance?

This type of insurance mainly covers costs if you cause a car accident and someone gets hurt. So, if you’re driving a car you don’t own and there’s an accident, this insurance can help pay for the other person’s medical bills.

Some non-owner insurance might also cover other things the law says you need, like protection against drivers without insurance.

It’s important to note that this insurance usually only covers the person named on the policy. If you and your partner need it, check to ensure you’re both covered.

How Does Non-Owner Car Insurance Work?

If you have an accident in a car you borrowed, non-owner car insurance can help cover the costs for damage or injuries you caused. This insurance comes in after the car owner’s insurance.

For instance, if you crash a friend’s car and their insurance covers up to $25,000 in medical bills, but the total bills are $38,000, you’d be responsible for the extra $13,000. If you have non-owner insurance with a $50,000 limit, it would cover that $13,000 for you.

What Does Non-Owner Car Insurance Cover?

If you have an accident in a borrowed or rented car, non-owner car insurance helps in several ways:

What Does Non-Owner Car Insurance Cover?
  • It covers medical bills for people you might hurt.
  • It pays for damage you cause to other people’s property, like their car or a fence.
  • It provides legal support if someone sues you because of the accident.

In some places, you can also add extra coverages to your non-owner insurance:

  • Uninsured Motorist Coverage (UM): This pays for your medical bills if someone without enough insurance hits you. It can also help in hit-and-run cases.
  • Medical Payments (MedPay): This covers medical bills for you and your passengers, no matter who’s at fault.

Remember, non-owner car insurance acts as a backup. If you crash a friend’s car, their insurance pays first. Once their limit is reached, your non-owner insurance steps in to cover the rest, up to its limit.

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

Non-owner car insurance covers your basic driving needs, but it doesn’t cover everything:

  • Car Damages: If you damage the car you’re driving, this insurance won’t pay for repairs. This insurance also doesn’t cover issues like theft, fire, or vandalism. If another driver damages the car, the car’s owner will use their own insurance or claim against the responsible driver.
  • Your Injuries: This insurance doesn’t cover injuries you get in an accident. If you want coverage for this, you might be able to add a special medical coverage.
  • Other People: Usually, this insurance only covers you. It won’t cover your spouse or other drivers in your home. Also, if someone in your house has their own car insurance, some companies might not let you get this non-owner insurance.
  • Work Driving: If you’re using a car for business, like delivering items, this insurance won’t cover you.
  • Personal Items: If you lose or damage personal things, like a laptop, in a borrowed car, this insurance won’t cover it. However, your home or renter’s insurance might cover it.

When to Consider The Insurance

Here’s why you might consider getting non-owner car insurance:

  • Frequent Car Rentals: If you often rent cars, non-owner insurance can save you from buying insurance each time from the rental agency.
  • Using Car-Sharing: If you use car-sharing services like Zipcar, having non-owner insurance can give you better coverage. For instance, Zipcar only offers the basic insurance required.
  • Avoiding Insurance Gaps: If you’re between owning cars, this insurance keeps your coverage continuous. Skipping insurance can make future rates go up.
  • Required by Law: If you’ve faced issues like a DUI, or driving without insurance, some states might ask you to prove you have insurance, even if you don’t own a car. Non-owner insurance with an SR-22 form can help here.

Who Shouldn’t Buy Non-Owner Car Insurance

In these situations, a non-owner insurance policy might not be the best choice for you.

Who Shouldn’t Buy Non-Owner Car Insurance
  • Borrowing a Household Car: If you drive a car owned by someone in your home, you should usually be on their insurance. If not, some companies might refuse coverage if all drivers in the home aren’t listed.
  • Using One Friend’s Car Often: If you often drive a car owned by someone you don’t live with, like a neighbor or employer, you might already be on their insurance. Always check with the car’s owner to be sure.
  • Driving Rarely: If you only drive once in a while, like renting a car annually, the non-owner policy might cost more than it’s worth. Buying insurance when renting or depending on the car owner’s policy might be better.

How Much Is Non-Owner Car Insurance?

Usually, non-owner car insurance is cheaper than insuring a car you own with the same level of liability coverage. However, if you require the insurance company to submit an SR-22 or FR-44 form, any insurance policy will likely be more expensive until you no longer need that form. 

Your cost will vary based on factors like your age, driving history, and how frequently you drive, among other things. To understand better, it’s essential to explore the factors influencing car insurance prices.

How to Save Money on Non-Owner Car Insurance

The price of non-owner car insurance varies based on different factors. To save on your insurance costs, consider these tips:

  • Explore discounts: Many insurers offer discounts for non-owner policies. The types and amounts of these discounts can differ by company.
  • Boost your credit score: Generally, drivers with higher credit scores get better insurance rates. Enhancing your credit can lead to lower premiums.
  • Compare options: Check out several insurance companies that provide non-owner policies in your area. Weigh their offerings against factors like discounts, customer feedback, third-party ratings, and their digital tools for managing policies.

How to Choose the Best The None Car Insurance 

When searching for the best non-owner insurance, consider the following:

  • Evaluate your needs: While non-owner car insurance primarily offers personal liability coverage, selecting higher limits can provide better financial safety if an accident occurs.
  • Understand your policy: Though non-owner and standard car insurance share similarities, they’re not identical. Know exactly what your policy covers, its limits, and any exclusions.
  • Compare quotes: Since premiums can vary between insurers, gather quotes from multiple providers to find the best rate.

Bottom Line 

In conclusion, if you don’t own a car but often rent or borrow one, non-owner car insurance can offer you liability coverage. Depending on how often you rent cars, it might be more cost-effective than opting for the rental company’s liability insurance.


Can you get car insurance without a car?

Indeed, you can have car insurance even if you don’t own a car. Non-owner car insurance gives you liability coverage when you’re at fault in an accident with a car you’ve borrowed or rented. It acts as a backup to the car owner’s primary insurance. This type of insurance is great if you often rent cars, frequently use a friend’s car, or if your state mandates an SR-22. Plus, it helps avoid insurance gaps if you’re transitioning between vehicles.

What should I do if I have non-owner car insurance and I buy a car?

When you purchase a car, you must switch to traditional car insurance since non-owner policies won’t cover owned vehicles. To find the right insurance, it’s wise to compare quotes from various companies. Choose one that not only fits your budget but also has a solid reputation for customer service. Check out the top car insurance companies to begin your search.

Does non-owner car insurance cover rental cars?

Non-owner policies often cover rental cars, providing liability coverage for any damage or injuries you cause to others in an accident. However, they won’t cover damage to the rental car itself. For protection against things like dents in the rental, you’d need to look at other choices, like insurance from the rental agency or coverage from the credit card you use to book the rental.

Can I insure a car not in my name?

You can insure a car you don’t own, but it might be a bit tricky. If you often drive a car you don’t own, first try getting added to the owner’s insurance as a driver. Alternatively, consider adding your name to the car’s title, letting you purchase insurance for it. If these aren’t options, consider a non-owner car insurance policy.

This non-owner policy covers liability for cars you borrow or rent. If an accident happens, the car owner’s insurance pays first, and yours steps in if their limit is reached. However, this policy won’t cover the car’s damages since it lacks collision or comprehensive insurance.

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