What is a non-owner car insurance policy?

Do you need car insurance if you don’t have a car? Yes, you need an up-to-date auto policy if you plan on driving any car. Those who don’t own a car but rent or borrow someone else’s vehicle more than 10 times a month need a non-owner car insurance policy. 

Non-owner auto insurance provides liability-only coverage for any bodily injuries and property damage you cause while driving another person’s car. Without it, you’re responsible for those costs out of pocket.

This guide covers everything you need to know about how to get car insurance without a car, including where to find coverage and which auto insurance companies offer the lowest rates. 

What is non-owner car insurance?

This car insurance covers drivers who don’t own a car but regularly drive, usually 10 or more times a month. It provides the minimum liability insurance required to drive legally in any state.

Non-owner insurance is excellent coverage if you use car-sharing services or rental cars, as it’s much more affordable than getting a policy at the counter. Policies also cost less than personal auto insurance.

You must have a valid driver’s license to buy non-owner insurance, and you can’t own a personal vehicle. In addition, many companies refuse to offer non-owner coverage if you have access to a vehicle at home. 

Read More: How do you get car insurance for a car you don’t own?

How does non-owner car insurance work?

Non-owner policies work like personal liability auto insurance by covering injuries and damages you cause in an at-fault accident. After an accident, the injured party files a claim with your non-owner insurance company, and you may see rates increase after a single claim. 

Unlike personal insurance, a non-owner policy isn’t full coverage, as it doesn’t cover any of your injuries or damages to the vehicle you were driving. Instead, the vehicle’s owner must file a collision or comprehensive claim on their own insurance to receive compensation.

What does non-owner car insurance cover?

Non-owner car insurance meets all state minimum requirements for insurance, meaning your policy covers:

• Injuries you cause to other drivers, passengers, and pedestrians in an auto accident
• Property damage you cause in an auto accident
• Damages caused by uninsured/underinsured motorists and hit-and-run drivers

Non-owner insurance can provide personal injury protection and medical payments coverage in states requiring it. You can also add this policy if it’s available in your state to help cover your medical costs in an at-fault accident. However, adding extra coverage to a non-owner policy will raise your monthly insurance rates.

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How much does non-owner car insurance cost?

Car insurance is cheaper if you don’t own a car. Non-owner car insurance rates average between $200 and $600 annually, meaning you can pay less than $50 per month for coverage.  Drivers in some states can pay as little as $12 per month for non-owner auto insurance. 

Your rates depend heavily on age, gender, and location. The insurance company you choose also impacts how much you pay since each insurer weighs your risk differently.

The easiest way to get the lowest non-owner car insurance quotes is to shop around and compare as many local insurers as possible. Below, we found the best rates for non-owner car insurance among the biggest national companies.

Read more: Can I get an insurance quote without a car?

Best Non-Owner Car Insurance Companies

The three largest car insurance companies in the country offer non-owner auto insurance at competitive rates. 

Geico Non-Owner Car Insurance

You’ll get the lowest non-owner insurance rates with Geico. The company offers cheap rates to drivers of all ages, and you can get coverage immediately when you shop online. However, Geico operates primarily online, so you may want to shop elsewhere if you prefer talking to a local agent.

State Farm Non-Owner Car Insurance

Monthly non-owner insurance rates are more expensive with State Farm than Geico. However, State Farm offers more driver-based discounts to help non-owners lower their rates. It also has higher customer satisfaction regarding claims.

The State Farm auto insurance complaint ratio is .57, meaning it receives half the complaints of other insurers. Its complaint ratio is slightly higher for other types of insurance claims, but it still has fewer complaints overall than its national competitors. Learn more about State Farm customer service in our review. 

Progressive Non-Owner Car Insurance

Progressive offers flexible policy options for drivers seeking non-owner insurance. You can take a quiz on the company website to determine if you need this coverage and what type of policy fits your situation.

On the flip side, Progressive insurance quotes are sometimes higher than Geico and State Farm, depending on your age and driving record. Compare Progressive car insurance discounts to get better rates.

Other Companies Offering Non-Owner Insurance

Along with the top three insurance companies, other popular insurers offer non-owner coverage, including:

• Allstate
• American Family
• Farmers
• The General
• Liberty Mutual
• Nationwide

This list isn’t inclusive, and some companies may be unavailable in your state. You might also find a small regional insurer offering even lower rates than the companies listed above. 

State laws can limit the coverage offered, so shop around for insurance quotes from multiple companies to see which offers the best rates near you.

Who needs to buy non-owner car insurance?

Not everyone needs non-owner auto insurance. You only want this coverage if you don’t own a car and drive someone else’s vehicle more than 10 times a month.  It’s also a great way to save money on insurance if you’re in between vehicles.

Read more: Do you need car insurance to drive someone else’s car?

For example, are you waiting to buy a new car after selling your old one? You can buy non-owner car insurance instead of a personal policy while waiting. As a result, you’ll save money on monthly car insurance and avoid a coverage lapse.

Read through these examples of when you might need to consider non-owner auto insurance to decide if you should buy coverage.

If You Want to Save Money on Rental Car Insurance

Non-owner policies are a cheap alternative to the rental car insurance you buy from the counter, especially if you don’t own a car and find yourself renting vehicles for weeks.

Even the cheapest rental insurance costs around $10 per day, or $300 monthly. You can buy non-owner insurance for less than $50 per month and save hundreds per year.

If You Frequently Use Car-Sharing Services

Some car-sharing companies, like Turo or TeslaRents, may offer liability coverage. Others require drivers to have their own insurance policies. Buying non-owner insurance ensures you’re covered no matter which service you use or the vehicle you rent.

Non-owner auto insurance is more expensive than coverage offered by car-sharing companies. However, your non-owner policy comes with higher limits, meaning you have better protection in an accident.

If You Frequently Borrow a Friend’s or Family Member’s Vehicle

When you drive someone else’s car, their insurance typically covers you. However, since you aren’t the owner of the car or the insurance policy, you have no control over your coverage limits. With a non-owner policy, you can choose higher or lower limits depending on your budget and needs. 

If You Need to Get Your License Reinstated

State law requires drivers with license suspensions or revocations to file SR-22 or FR-44 forms to reinstate driving privileges. Both forms require proof of insurance. If you don’t own a car, buying non-owner car insurance satisfies the state requirements to get your license back.

Read more:

• Compare FR-44 Insurance: Rates, Discounts, & Requirements
• SR22 Without Car Insurance (How to Get)

Non-Owner SR-22 Insurance

It’s very easy to get non-owner SR-22 insurance — ask your insurance company to file it for you if you need to reinstate your license. 

Remember that non-owner SR-22 insurance is more expensive than a standard policy. You may also need to carry higher liability limits when you file SR-22, resulting in higher rates. Read more helpful tips on how to get cheap non-owner SR-22 insurance.

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When Not to Get Non-Owner Insurance

Not everyone needs non-owner car insurance, so explore the examples below to see if you can opt out of coverage.

If You Own a Car

You must have a personal auto insurance policy if you own a vehicle registered in the state under your name. No insurance company will underwrite a non-owner policy if you legally own or lease a vehicle.

If You Drive Infrequently

You may never want or need to buy a car if you live in a walkable community with plenty of access to public transportation. In that case, non-owner insurance is irrelevant. If you aren’t behind the wheel of a car at least one week out of the month, you don’t need non-owner auto insurance.

If You Borrow a Roommate’s Car

Insurance companies are hesitant to write non-owner policies for drivers that could join a roommate’s policy. So if you regularly drive a vehicle belonging to someone you live with, ask to be listed as a named driver on their personal insurance. 

If You Drive a Company Car

When driving a work vehicle, you automatically have coverage from the business owner’s commercial policy. You can use non-owner coverage if you’re unsatisfied with your employer’s liability limits, but it’s not required.

How to Save Money on Non-Owner Car Insurance

Asking to be listed as a named driver on an existing policy is one of the best ways to save on non-owner auto insurance. You and the policy owner can get very low rates if you maintain clean driving records.

As discussed earlier, you could offer to increase the levels and pay the difference if you’re worried about coverage levels. Doing so ensures you’re financially covered after an at-fault accident, and rates are much more inexpensive than long-term car insurance. 

Another way to save money on car insurance is to ask about discounts. You may not qualify for mileage, anti-theft, or other vehicle-related discounts, but most companies offer lower rates based on your unique profile. For example, where you work, memberships, and safe driving habits can qualify you for discounted rates.

Finally, you’ll get the best non-owner car insurance quotes when shopping online. Online insurance quotes allow you to compare multiple companies to find the cheapest one.

The Bottom Line on Buying Car Insurance Without a Car

A non-driver policy is your best bet for auto insurance on a car you don’t own. Geico offers the lowest rates for non-owner car insurance, but State Farm and Progressive are competitive companies. So you’ll want to compare quotes from these and other local insurers to see which offers the best price for you.

However, before you buy coverage, consider how often you drive and the kind of vehicles you borrow.

For example, if you don’t drive more than 10 days a month, you probably don’t need non-owner insurance. If you have access to a roommate or family member’s car, you can ask to be on their policy instead.

However, you’ll be better protected with non-owner coverage if you rent vehicles for several weeks or borrow a friend’s car regularly. You also have many options for car insurance without a car, so explore yours with our free online quote comparison tool above.

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Case Studies: Non-Owner Car Insurance Policies

Case Study 1: Sarah’s Car Rental Coverage

Sarah frequently travels for work and relies on rental cars to get around. She doesn’t own a personal vehicle but needs insurance coverage for the cars she rents. Sarah decides to purchase a non-owner car insurance policy to protect herself from liability. This policy provides her with the necessary coverage when she drives rental cars, ensuring she is financially protected in case of an accident.

Case Study 2: Michael’s Car-Sharing Service Protection

Michael lives in a city with excellent public transportation and only needs a car occasionally. He often uses car-sharing services to access a vehicle when necessary. To ensure he has adequate coverage during these car-sharing trips, Michael opts for a non-owner car insurance policy. This policy gives him liability coverage and peace of mind when he borrows cars through car-sharing services.

Case Study 3: Lisa’s Borrowed Car Liability

Lisa doesn’t own a car but frequently borrows her friend’s car for various purposes. She wants to make sure she has liability coverage in case she causes an accident while driving her friend’s car. To address this concern, Lisa purchases a non-owner car insurance policy. This policy protects her from the financial repercussions of any damages or injuries she may be liable for while driving her friend’s vehicle.

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