Non Owner Car Insurance
Car Insurance

Non-Owner Car Insurance - A Complete Guide

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What is Non-Owner Car Insurance?

When you are not a car owner and are driving a car that you have either borrowed or rented, you may need non-owned car insurance. This policy covers third-party bodily injuries and damage to property that is caused accidentally. You are not covered by this policy and neither is the car that has been borrowed or rented. It is important to be listed on the car owner’s policy if you are borrowing it from a relative or family member.

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What Is The Ideal Time To Get Car Insurance For Non-Owners Policy?

You would need non-owners car insurance when you are:

  • Using a car-sharing service: Get liability coverage over and above what the company provides when you go for insurance for non-car owners
  • Renting cars a lot: You save more with insurance for non-car owners compared to getting coverage from the rental company
  • Getting a driver’s license: It might be compulsory for getting or reinstating your driver’s license in some states for non-car owners

Process of Buying Non-Owned Auto Insurance

  • Provide your basic driving background information.
  • Get information about the different companies providing insurance coverage and their insurance rate quotes.
  • Select the company that is giving you the best deal.
  • Make a down payment to activate coverage. The amount needed will depend on the company and state.
  • Find out coverage details from the auto insurance company. Your agent would need your state notification number for SR-22 where applicable. This is not required by all states.
  • Either the agent will purchase your insurance or SR-22 will be directly filed by the insurance company.

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Getting Non-Owner Car Insurance Quote

Getting a quote for nonowners insurance is easy. To purchase coverage, basic personal information and your driver’s license number are required. We will recommend the affordable rate after a thorough comparison between a minimum of three to four quotes so that you can make a decision.

Who Needs Non-Owner Car Insurance Policy?

If you drive but don’t own a car, then non-owner car insurance is likely a great choice for you. This type of liability policy is ideal for people who often borrow or rent a vehicle—or have to apply for an SR-22 even though they don’t have a car. 

Inexpensive and relatively easy to get, nonowner car insurance provides you with both bodily injury and property damage in the event you’re driving a vehicle that doesn’t belong to you.

Sounds great, right?

It is, but it’s not a solution for everyone. For instance, this policy is not for you if you live with someone who owns a vehicle and would otherwise be listed as a driver under that person’s policy. 

Car insurance for nonowners is a specific kind of insurance for people in specific situations: people who drive but do not have regular, easy access to a vehicle.

With these specifications and caveats in mind, let’s dive deeper into non-ownership car insurance so you can understand if it’s right for you. 

Car insurance for non-owners is a good choice if you fit into one of these categories:

You don't own a car but borrow one fairly regularly.
You are applying for a driver's license and require proof of financial responsibility but you do not own a car.
You are attempting to reinstate your license and need to file a SR22 or FR44 but don't own a car.
You rent cars regularly.
You sold your car and won't drive for an extended period. Non-owner auto insurance during this time will prevent you from having an insurance lapse, which will result in your being classified as a high-risk (and thereby more costly) driver.
You use a ride share service, like Car2Go or ZipCar.

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What Does a Non-Owner Car Insurance Cover?

Non-owner car insurance can cover:

  • Liability. This coverage pays for injuries as well as property damage to the other party.
  • Uninsured or Underinsured Motorist Liability Insurance. If the other person in the accident doesn’t have insurance—or doesn’t have enough of it—your policy will have you covered.
  • Medical Payments or Personal Injury Protection (PIP). Both these types of insurance will make sure you have medical coverage no matter who was at fault in the accident. 
  • Rental Car Liability. This insurance covers the cost of damage or medical bills to other cars and people in an accident. 

What's Not Covered by Car Insurance For Non-Owners?

The most notable thing that’s not covered under non-owner car insurance is the vehicle itself. The reason is simple: There’s no vehicle assigned under this type of policy so it can’t include collision coverage or comprehensive coverage on an auto that, for all intents and purposes, does not exist. This means damage to the vehicle you are driving, medical bills, or other costs from injuries caused by a collision are not covered. 

However, if you have medical payment or PIP coverage with your non-owner car insurance, that can plug the holes in your coverage. 

Non-owner car insurance also doesn’t cover towing or rental car reimbursement. 

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How Much Does Cost Of Insurance For Non-Car Owners?

Insurance for non-car owners costs less than standard car insurance—up to 15% less. 

While it’s difficult to be specific about the exact cost of this type of coverage since that depends on variables ranging from the amount of coverage you want, your driving history, how often you plan to drive, and where you live, on average, non-car owner insurance costs between $200 and $500 per year. 

So, Do I Need Non-Owners Insurance Policy?

If you don’t own a car and you’re not listed as a permitted driver but you drive a vehicle you’ve rented or borrowed, then yes, you should get nonowners car insurance (provided your state offers it. Not all states do).

If you will have a lapse in coverage because you sold your car or are between vehicles, you can benefit from this kind of policy as well since it will help you avoid being classified as a risky driver. 

Non-owner auto insurance is advisable since you get liability coverage, uninsured motorist coverage, and personal injury protection in the event of an accident.
Certainly, with non-car owners' insurance, you avoid costly insurance charges by the rental car company. The more frequently you rent cars, the greater the savings.
Making changes to your non-owners policy like adding or subtracting a driver or a car is hassle-free. Get in touch with our friendly representatives by calling them or meeting them in person at any of our local stores.
Missed a payment? Don’t worry! You will receive a notice and additional time for making the payment. However, if payment for non owned car insurance is not received after this extended period, it will lead to the cancellation of your coverage.