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

  1. 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.
  2. 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.
  3. 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

Coverage Details
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:

  • Acceptance
  • Dairyland
  • Direct Auto Insurance
  • Titan