Non-owner car insurance is a way to buy liability insurance if you don't own a car. Liability insurance pays for injuries and damage to others if you cause a car accident. Some insurance companies offer non-owners insurance that also has medical payments and uninsured/underinsured motorist coverage, which pay for injuries to you and your passengers.
Note that non-owners insurance does not include comprehensive and collision coverage, which pay for damage to the car you're driving.
Three reasons you might need non-owner car insurance
- You rent cars frequently. If you have non-owners insurance you won't need to buy liability coverage through rental car insurance at the rental counter.
- Your state requires you to file an SR-22 (or FR-44) form. Your state might require you to show proof that you have car insurance if you had your driver's license suspended or revoked, have a DUI conviction, were caught driving without insurance or other problems on your driving record. Non-owners insurance is a way to get insurance for an SR-22 without having a car.
- You don't want a gap in your auto insurance. Being continuously insured helps you get cheap car insurance. If you don't own a car, a non-owner policy is a way to stay insured.
You don't need non-owner insurance if:
- You own a car. In that case you should already have auto insurance on the vehicle.
- You borrow friends' cars. If you cause a car accident while driving a friend's car, their insurance kicks in first. (But if you have a non-owners policy it could pay out second if your friend's car insurance isn't enough.)
- You drive a car owned by someone else in your household, like a parent. In that case, you should be listed on their insurance policy.
Summary: What non-owner insurance covers
|Liability||Medical bills and property damage for others if you cause a car accident.|
|Depending on the insurance company, non-owner insurance might include:|
|Uninsured/underinsured motorists||Medical bills for you and your passengers if you're hit by someone with too little or no insurance.|
|Medical payments coverage (MedPay)||Medical bills for you and your passengers no matter who caused the accident, and funeral costs.|
Where to buy non-owner car insurance
Not all insurance companies sell non-owner policies. Price quotes are usually not available online. Some sellers are:
- Direct Auto Insurance