Non Owner Car Insurance: What Is It and Who Should Have It?

Non-owner car insurance is a liability policy for drivers who do not own a vehicle. Whether you frequently rent or borrow a car or need to file an SR-22 without a vehicle, a non-owner policy is a low-cost way to obtain auto insurance liability coverage. Non-owner auto insurance policies are frequently 5 to 15% less expensive than standard policies. Non-owner insurance, on the other hand, isn't the best option for many people, including those who cohabit with a car owner or are otherwise required to be listed on a car's primary policy.

What is Non-Owner Car Insurance?

Non-owner insurance, also known as non-drivers insurance, covers bodily injury and property damage when driving a vehicle that you do not personally own. So, if you get into an accident with another driver and are found to be at fault, your non-owners insurance policy will protect you from lawsuits, just like a standard liability policy.

Aside from liability coverage, which pays for the other party's injuries and property damage in the event of an accident, a non-owner auto insurance policy may also include:

• Medical Payments or Personal Injury Protection Coverage
• Uninsured or Underinsured Motorist Liability Insurance
• Rental Car Liability Coverage

A non-owner auto insurance policy will not include comprehensive or collision coverage because there is no specific vehicle assigned to it. As a result, it will not cover damage to your vehicle, medical bills, or other costs resulting from injuries sustained in a collision.

How Does Non-Owners Auto Insurance Work?

Non-owner car insurance is purchased per person, so a policy will only cover you, not your spouse or anyone else.

Non-owner policies typically have no deductible, which means you don't have to pay anything before coverage kicks in. This is because non-owner insurance is typically secondary coverage, used only if the primary coverage provided by the car owner is insufficient to cover all damages.

• Assume you were in an accident while driving a friend's car, and your friend's insurance had a $25,000 limit on property damage liability. If you caused $40,000 in damage, you would be liable for the additional $15,000 in damages. Your non-owners policy would cover this amount, but only if it included at least $40,000 in property damage liability coverage. Unless your non-owners liability limits are higher than the person whose car you're driving, your non-owners insurance will not apply.

How to Get a Cheap Non-Owner Policy

You only need to provide some basic personal information, your driver's license number, and a method of payment to get a quote for non-owner insurance and to purchase coverage (such as a credit card).

Despite the fact that most major auto insurance companies offer non-owner policies, none provide non-owner insurance quotes online. Even Geico, which is known for its simple online process, requires you to call an agent to get a quote. The following table contains phone numbers for several major insurers where you can get a quote.

The best non-owner auto insurance company is determined by your driving history and personal information, as these factors will determine your premium. Furthermore, some insurers do not offer non-owner insurance in certain states. We recommend calling multiple insurers and comparing multiple car insurance quotes before making a purchase to ensure you pay the lowest rate. When speaking with the insurer, make a note of whether you require an SR-22 or a FR-44.

After you purchase non-driver insurance, your insurer will send you physical proof of coverage. If necessary, you can usually get a copy emailed to you right away. If you require one, the insurer can file an SR-22 form on your behalf.

Do You Need Non-Owner Auto Insurance?

If you don't own a car, you are not legally required to have auto insurance. However, there are a few reasons why you might opt for non-owners car insurance:

• You regularly rent cars.
• You regularly borrow other people's vehicles.
• You sold your car or will not be driving it for an extended period of time, such as while serving in the military overseas.
• Because of a DUI or other serious traffic infraction, you require an SR-22 or FR-44.

You Regularly Rent Cars

If you rent cars frequently, a non-owner policy may be less expensive in the long run than purchasing rental car insurance on a regular basis. Insurance from the rental company typically costs at least $20 per day, so if you rent a car for 50 or more days per year, the annual cost will likely exceed the annual cost of a non-owner auto insurance policy. Just remember to:

• Confirm with the insurer that the non-owner policy will cover you for liability when driving a rental car.
• Check to see if rental car damage is covered by your credit card's rental car insurance. If not, you should get a collision-damage waiver from the rental company.

A credit card's rental car insurance will not protect you if someone sues you for damages. This free card benefit only covers rental car damage. Outside of carrying a policy for a vehicle you own, combining your credit card rental insurance with the liability portion of a non-owners policy would actually provide you with the most comprehensive coverage, because your car insurance also provides some coverage for a rental car.

You Regularly Borrow Cars From Others

Non-drivers insurance may be a good option if you frequently borrow cars from friends or other people. It guarantees a certain level of coverage each time you drive, so you don't have to worry about whether the car owner's insurance policy will cover you or if the liability limits are too low.

Just keep in mind that if the car you borrow belongs to someone you live with, or if you borrow the same car on a regular basis, you will most likely need to be added to the car owner's insurance policy for primary coverage. If you don't have a non-owner policy, the company that issued it may not cover you at all in the event of an accident.

You Sold Your Car or Won’t Drive for an Extended Period of Time

Almost every insurer raises rates for drivers who have had a "lapse in coverage," or have been without auto insurance for an extended period of time after previously having insurance. Even if you never drove a car while uninsured, you will be considered a higher risk and will not be eligible for the best rates.

Because non-owner auto insurance is less expensive than traditional coverage, it may be a good idea to remain covered with a non-owner policy, especially if you anticipate needing insurance in the future. This is especially true if you own a high-priced vehicle. Also, if you are in the military and are being deployed overseas, a non-owner policy may be your cheapest option, even though some companies, such as USAA and Geico, offer discounts for time spent out of the country. If that is the case, compare quotes from various insurers to be certain.

Non-Owner SR-22 Insurance

If you have a DUI or a serious traffic violation, you may require SR-22 or FR-44 insurance to have your license reinstated. Depending on the SR-22 requirements, you may need higher limits and must maintain this coverage for two to five years in order to keep your license.

Because you cannot file an SR-22 on your own and must rely on your insurer to do so, a non-owner SR-22 policy can be useful, especially if you do not own a car. The company from which you buy the non-owners policy can file the SR-22 on your behalf and get you back on the road to license reinstatement.

One significant advantage of using non-owners insurance for an SR-22 is that it is less expensive. You'll still have higher rates than others for whatever reason the SR-22 was required, but your premiums won't be as high as they would have been with a traditional auto insurance policy.

Keep in mind that not all insurance companies, particularly smaller ones, will sponsor an SR-22 or FR-44. If yours does not, you can obtain a non-owner policy and have another company file the SR-22 on your behalf.

Who Shouldn't Get a Non-Owner Policy?

You should not obtain non-owner auto insurance if:

• You own a car
• You borrow a car from someone with whom you live.
• You almost never borrow someone else's car.
• You drive a company car for business purposes only.

You Own a Car or Live With Someone Whose Car Your Borrow

You do not need non-owner car insurance if you own a car because your liability coverage will generally cover you if you borrow or rent another person's vehicle. This isn't always the case, so check with your insurer to confirm the details of your policy (you'll usually have some level of coverage). An umbrella policy is a better option if you want additional liability protection.

If, on the other hand, you don't own a car but occasionally borrow one from a parent, spouse, or other person with whom you live, you should have your name added to their auto insurance policy. Even if you only use the car on occasion, their insurer should be informed that you live together and may require you to be named as a driver. Failure to do so may result in the insurer refusing to cover certain, or any, costs if an incident occurs.

You Rarely Borrow Someone’s Car

Non-owner insurance is not required if you are driving someone else's car with their permission. If you get into an accident with that car, the owner's insurance will usually be considered the primary coverage and will cover the damages. Simply keep in mind:

• If a claim is made, your friend’s rates may rise, even though you were the driver at fault.
• If the damages exceed the limits of the owner’s insurance policy, any excess costs will be your responsibility.
• Not every insurer provides coverage when someone other than the owner is driving the car. Make sure to check you are covered before you take the wheel.

You Drive a Company Car

If you drive a company car—that is, if your employer owns the car you use on a regular basis—the situation can become more complicated. Typically, if you are driving the car for business purposes at the request of your employer, the company or its insurance will cover you in the event of an accident. If you use a company car for personal purposes on a regular basis, you'll be liable for any damage that occurs during personal use and should consider getting non-owners insurance.

How Much Does Non-Owner Car Insurance Cost?

When compared to a traditional auto insurance policy, comparing quotes for a non-owner policy is difficult because you must call each insurer individually. Overall, our research discovered that non-owner policies are 5 to 15% less expensive than standard policies with comparable coverage. However, when comparing a non-owner policy to a full-coverage policy or insuring a high-value vehicle, the savings can be significant.

The cost of a non-owners insurance policy can vary depending on the following factors:

• Your coverage limits
• Your driving record
• Where you live
• How often you expect to drive

If you get a non-owner policy for an SR-22, keep in mind that any DUIs or incidents on your record will still have a negative impact on your rates, even if you have a non-owner policy. Your premiums with a non-owner policy will most likely be higher than what you paid before the SR-22 incident, but less expensive than if you still had a car and your poor driving record.

Frequently asked questions

Can you get car insurance without a car?

Yes, if you want to get car insurance but don't own a car, you can get a non-owner auto insurance policy.

What is non-owner car insurance?

A non-owner policy protects you against basic liability on your own policy rather than on someone else's. Rental car insurance is costly, and if you borrow a friend's car and cause an accident, you risk raising their insurance rates.

Who should get non-owner car insurance?

There are several scenarios in which you might want to obtain non-owner insurance. One of the most common is if you don't own a car but frequently rent or drive cars that don't belong to you and want to be safe. Another scenario is if you require a non-owner SR-22 as a result of a DUI or another serious driving infraction.

Is non-owner car insurance expensive?

Non-owner car insurance is slightly less expensive than regular car insurance. We discovered that it could cost between 5% and 15% less than an equivalent policy linked to a car.

Where can I get nonowner car insurance?

Nonowner insurance is available from major insurers such as State Farm, Geico, Progressive, and The General. Although most major auto insurance companies provide non-owner auto insurance, you must contact the insurer directly to obtain a quote.