What is Non-Owner Car Insurance, and Do You Need It?

Non-owner car insurance provides liability coverage for drivers who regularly drive vehicles they don’t own. It can make sense if you frequently rent or borrow cars, use car-sharing services, or need an SR-22 but don’t own a vehicle.

Non-owner car insurance is a liability policy for drivers who don’t own a vehicle but still drive. Unlike a standard auto insurance policy, it generally follows you as the driver rather than insuring a specific vehicle. 

A standard policy can include liability, comprehensive, and collision coverage for a vehicle you own. A non-owner car insurance policy provides liability protection, but not physical damage coverage for the vehicle you’re driving. 

What non-owner car insurance covers depends on your insurance company and state. The policy must meet or exceed your state’s minimum liability limits and any other coverage requirements. 

A non-owner policy may include:

• Bodily injury liability: Helps pay for injuries you cause to other people.

• Property damage liability: Helps pay for damage you cause to another person’s vehicle or property.

• Medical payments coverage: Can help pay for you and your passengers’ medical expenses if injured, regardless of fault.

• Personal injury protection (PIP): Can cover you and your passengers’ medical bills, lost wages, and other essential services if injured in a covered accident, no matter who caused it.

• Uninsured motorist coverage: May help if an uninsured or underinsured driver injures you.

Non-owner auto insurance typically doesn’t cover damage to the car you’re driving. Since it doesn’t cover a specific vehicle, you can’t add comprehensive or collision coverage to the policy.

Non-owner insurance acts as secondary coverage. So, if you borrow a friend’s car and cause an accident, their standard policy should cover the injuries or property damage you cause, up to the policy limits. If damages exceed their limits, then your non-owner auto insurance can kick in to cover the rest, up to your policy limits.¹

You may want non-owner car insurance if you regularly drive but don’t own a car and need your own liability coverage. 

Common situations where non-owner coverage might make sense include:

• Renting cars regularly: A non-owner policy can provide liability protection for a rental car and may be a cheaper alternative to the rental company’s liability coverage.²

• Borrowing cars frequently: If you often drive vehicles owned by a friend, family member, or neighbor, a non-owner policy may provide additional protection.

• Using car-sharing services: Non-owner coverage can supplement coverage provided by the car-sharing company.³

• Needing an SR-22: Some states require an SR-22 form, which is proof of financial responsibility for high-risk drivers. If a state requires an SR-22 filing and you don’t own a vehicle, a non-owner policy can help you meet the requirement.⁴

• Avoiding an insurance gap: Some insurers consider insurance history when setting rates. If you plan to insure a car in the future, a non-owner policy can provide continuous insurance coverage and may help you avoid higher rates.

You probably don’t need a non-owner insurance policy if you own a car, rarely drive, or already have appropriate coverage through another policy. 

You may not need non-owner auto insurance if:

• You own a vehicle. Your standard car insurance policy covers you and your vehicle.

• You rarely borrow a car. The vehicle owner’s policy may cover you for permissive use, which means they give you permission to drive the vehicle and take responsibility for any accidents you cause. 

• You regularly drive a household member’s car. Some insurers require all household drivers to be listed on that person’s policy.

• You rarely rent vehicles. Rental company coverage may be enough for occasional trips. Some credit cards may offer secondary collision and comprehensive coverage.⁵

Don’t assume you’re covered simply because you’re driving with permission. Check the car owner’s policy before relying on it to protect you in an accident.

Non-owner car insurance typically costs less than a standard auto policy because it doesn’t insure a specific car for physical damage. The cost can vary based on factors such as:

• Age

• Driving history

• Location

• Coverage types and limits

• Insurance company

Comparing quotes from several companies is the best way to find out how much non-owner car insurance will cost you. Luva can help you compare multiple quotes side by side so you can quickly find the best option.

Non-owner insurance availability and coverage options can vary by state and insurer. Some top carriers that offer non-owner car insurance include:

• GEICO

• Progressive

• Travelers

• Liberty Mutual

• Direct Auto

• The General

• Dairyland

State Farm offers a form of non-owner car insurance called Personal Mobility Coverage, but it’s only available for California residents.⁶

Getting a non-owner car insurance policy usually requires a little more research. Not every insurer offers it. Quotes may be available online, over the phone, or through a local agent.

Take these steps to get non-owner car insurance:

1. Confirm you need it. Check whether another policy already provides the coverage you need.

2. Check your state laws and requirements. Find out about coverages, liability limits, and whether you need an SR-22.

3. Determine your coverage needs. Liability coverage protects you financially if you cause an accident, including paying legal fees if you get sued. The insurance industry generally recommends minimum liability limits of 100/300, or enough to protect your assets.⁷

4. Contact insurers. Ask whether they offer non-owner policies in your state. Since non-owner coverage is less standardized, calling an insurer or agent may be easier or your only option. 

5. Compare quotes. Request quotes from each company using the same coverages and liability limits to make an apples-to-apples comparison.

6. Ask about exclusions. Confirm how the policy works when you rent or borrow a vehicle and whether optional coverage is available.

7. Review the policy. Make sure the coverage limits, effective date, and any SR-22 filing are correct.

Not sure if non-owner coverage is right for you? Chat with Lu, your personal insurance guide, to get personalized guidance and find the coverage that fits your needs.