Top Non-Owners Car Insurance Coverage: What You Need to Know

Can you get car insurance without a car? Drivers who don’t own a car but frequently use rentals, car-sharing services, or borrow vehicles are covered by non-owner car insurance. If a driver has a valid driver’s license and doesn’t own a car, they can buy non-owner insurance.

Be aware that many insurance companies won’t issue a non-owner policy if a driver has regular access to a car, as providers prefer you to be listed on a roommate or partner’s policy if you’ll be using their car. 

Keep reading to learn when you might need non-owner insurance and which companies offer the top non-owner auto insurance coverage.

What does non-owner auto insurance cover?

When you are operating a vehicle you do not personally own, non-owner or non-driver car insurance offers liability coverage for physical injury and property damage. As a result, if you were at fault in an accident with another driver, your non-owner insurance policy would protect you from lawsuits just like a standard liability policy as car insurance without a car.

Along with liability insurance, non-owner coverage also provides:

• Medical payments or personal injury protection coverage
• Uninsured/underinsured motorist coverage
• Renter liability insurance

Non-owner coverage availability will depend on your state insurance laws and requirements.

However, a non-owner auto insurance policy never offers comprehensive or collision coverage, as no particular vehicle is associated with it. As a result, it won’t pay for harm to the vehicle you’re driving.

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Do you need car insurance if you don’t have a car?

Here are a few situations where a non-owner liability insurance policy might be appropriate.

You Borrow a Friend’s Vehicle

As long as you have permission to drive the automobile, an insured driver’s liability insurance should cover damage to other vehicles involved in an accident. If your friend also has collision insurance, it’s likely that their auto insurance will cover any damage to their vehicle.

However, you can be responsible for any additional charges if expenses, particularly those related to a liability claim, exceed their policy limit. Car insurance for non-owners might shield you from these added expenses.

You Rent a Car Often

The majority of rental car companies give customers the opportunity to purchase top rental car insurance coverage. The costs will vary depending on the kind and scope of coverage you choose. This add-on can be an excellent choice if you don’t frequently rent cars.

However, non-owner coverage can be a more affordable option if you frequently use rental automobiles. In the long run, purchasing non-owner liability insurance can be less expensive than using the rental agency’s plan.

Read more: Will my Auto Insurance cover a rental car?

You are Searching for a New Car

You might want to buy a temporary non-owner policy if you are switching cars and don’t want to leave a gap in your insurance history. Insurance companies frequently notice lapses in coverage and will charge you higher rates when you buy coverage again.

Even though you might just be switching automobiles, you’ll want to avoid getting a bad driving reputation because that could result in higher insurance costs once you drive your new car home.

You Use Car-Sharing Services

Drivers have the choice to borrow a car for a few hours, overnight, or several days through commercial car-sharing and peer-to-peer (P2P) car-sharing services. P2P car-sharing systems depend on people who “rent” their vehicles to other drivers, while commercial car-sharing businesses like Zipcar operate a fleet of their own vehicles.

Contrary to rental car pick-up processes, cars are often stored nearby in parking garages or on the street. Drivers can reserve and access the vehicle using the company’s mobile app. 

Many car-sharing and peer-to-peer networks provide basic protection plans that cover damage to the actual vehicle. However, those plans do not cover third-party responsibility or your personal injuries.

Additionally, you might discover that the platform provides basic liability insurance as a component of the leasing agreement or that you can acquire supplemental liability insurance. Always check the company’s insurance policy to see what kind of coverage is offered and the liability limits before selecting this mode of transportation.

You are Reinstating Your License

Before you can get your license reinstated if you’ve lost it due to a traffic ticket or criminal conviction, such as a DUI, there are a number of steps you’ll need to take.

For example, even if you don’t own a car, many states need you to provide proof of insurance by filing SR-22 auto insurance coverage or an FR-44 (Florida and Virginia only). A non-owner auto policy might help you comply with state regulations if you need to show proof of insurance but no longer own a vehicle. (For more information, read our “Understanding FR-44 Auto Insurance Coverage“).

Always check state legislation to find out how long you must maintain SR-22 insurance and, if applicable, how much coverage you require if you choose a non-owner policy to satisfy a legal insurance obligation. (For more information, read our “Non-Owner SR-22 Auto Insurance: What It Is and How to Get It“).

While some jurisdictions only need you to maintain your coverage for three years, others may demand evidence of insurance for up to five. The provisions of your license restoration agreement may be broken if you cancel the coverage before then.

Who doesn’t need non-owner auto insurance?

Since your liability coverage typically covers you whether you borrow or rent another person’s vehicle, if you do own a car, you do not require non-owner car insurance. This isn’t always the case, so it’s a good idea to check the specifics of your policy with your insurer. Umbrella coverage is a better option if you want more liability protection.

You also won’t need non-owner auto insurance in the following situation:

You Borrow a Roommate’s Car

A parent, spouse, or other people you live with should add your name to their vehicle insurance policy. Even if you infrequently use the car, it is illegal to use someone else’s address to buy car insurance. Their insurance company needs to be aware that you live at the same address and may be an occasional driver.

If you don’t do this, the insurance can decide not to pay some or any costs in the event of an incident. 

You Rarely Use Someone Else’s Car

In theory, if you’re using someone else’s car with their consent, you don’t require non-owner insurance. The owner’s insurance will normally be regarded as the primary coverage and pay for the accident-related damages if you get into an accident with that vehicle.

Just remember that:

• Even though you were the motorist at fault, your friend’s premiums could increase if a claim is made.
• Any extra charges incurred if the damages are greater than the policy limitations of the owner’s insurance will be your expense.
• Not every insurance will provide coverage hen someone other than the owner is driving the car.

Before you get behind the wheel, make sure you are covered.

You Use a Company Vehicle

If your employer owns the vehicle you use on a regular basis, the issue may become more challenging.

Normally, the business or its insurance will cover you in any accidents while the car is being used for work-related reasons at the request of your employer.

However, suppose you frequently use a corporate automobile for personal purposes. In that case, you might be held responsible for any damage arising from such use and should consider purchasing non-owner insurance.

Read more: How to Insure a Car Not In Your Name

How much does non-owner auto insurance cost?

Is car insurance cheaper if you don’t own the car? The average cost of auto insurance for non-owners is frequently 5%-15% less expensive than a normal policy. However, the price of non-owner auto insurance coverage will vary depending on your state and the auto insurance provider.

Here are some additional typical cost elements:

• Driving history: In general, drivers who stay out of traffic tickets and collisions pay less for auto insurance.
• Age: It is usual for younger drivers with less driving experience to pay more than older drivers with more experience.
• Type of auto insurance coverage: You might anticipate paying more the higher your policy limitations are. We advise purchasing additional liability coverage than what is required by law in your state.

You can be responsible for the remaining costs, such as medical expenses and property damage if you cause a car accident and don’t have appropriate liability insurance. It is sensible to get liability insurance coverage for the assets, like your home and savings, that you might lose in a major lawsuit.

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Who provides car insurance without a car?

The majority of auto insurance companies don’t promote the fact that they supply non-owner auto insurance. Some may only provide non-owner auto insurance to current clients.

For instance, our Progressive auto insurance review finds that non-owner auto insurance is not offered when a new policy is purchased but is available to current customers who opt to remove all vehicles from the policy. So if you have a Progressive policy but are selling your automobile, you might be able to keep your auto insurance by selecting the non-owner endorsement.

Here are other popular insurance companies that sell non-owner car insurance:

• Geico auto insurance
• State Farm auto insurance
• Nationwide auto insurance
• Progressive auto insurance
• USAA auto insurance
• Liberty Mutual auto insurance
• Farmers auto insurance
• Travelers auto insurance

Keep in mind these companies might not sell non-owner car insurance in every state, and you may need to be an existing customer to be eligible to purchase it.

Case Studies: Top Non-Owners Car Insurance Coverage

Case Study 1: Sarah’s Rental Car Accident

Sarah, a frequent traveler, had car insurance coverage that saved her from bearing the financial burden of a car accident during her trip. The insurance helped cover the costs of repairing the rental car and the injured driver’s medical expenses. Without this coverage, Sarah would have been personally liable for the accident’s financial consequences.

Case Study 2: John’s Borrowed Car Incident

John, who regularly borrows his friend’s car, had a car accident without personal auto insurance. However, he had non-owners car insurance coverage that paid for the repairs and protected him from liability. This incident emphasized the significance of non-owners car insurance for occasional drivers like John.

Case Study 3: Maria’s Ride-Sharing Mishap

Maria, a part-time ride-share driver, had a collision while working and her personal auto insurance didn’t cover commercial use. However, her non-owners car insurance saved her from significant financial liabilities by covering medical expenses and damages. This incident highlighted the importance of securing non-owners car insurance for ride-share drivers like Maria.

Case Study 4: Michael’s Temporary Car Usage

Michael, a university student, had non-owners car insurance when he borrowed his parents’ car and had an accident. The insurance covered the repairs, saving him from expensive costs. This case study highlights the value of non-owners car insurance for frequent temporary car borrowers like Michael.

The Bottom Line on Non-Owner Auto Insurance

Non-owner car insurance may be something to consider if you’re looking for how to get car insurance without a car. Still, the decision will depend on the situation that puts you in the driver’s seat and factors like your personal assets and coverage choices. 

For example, you won’t need to buy non-owner auto insurance if you own a vehicle or regularly borrow a roommate’s car. However, you might need non-owner coverage if you regularly rent cars or use car-sharing services.

Non-owner auto insurance isn’t available everywhere, so use our free comparison tool below to find local car insurance companies in your neighborhood.

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