1. Home

What Is Non-Owner Car Insurance and Who Needs It?

Learn what non-owner car insurance covers, who needs it, and how it can protect you when driving a car you don’t own. Get all the details here.

Save hundreds today by comparing quotes from the nation’s top insurance companies

shield No junk mail. Instant results. Always free.

ProgressiveLiberty MutualRoot
The GeneralAmerican FamilyElephant
Amani Turnage

shieldWhy You Can Trust EverQuote

EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.

You might assume you wouldn't need auto insurance if you are not a car owner, but this isn't always the case. In some situations, having car insurance even when you don't own a car is a smart move. However, there is a difference between a traditional car insurance plan and the type you buy when you don't own a car. The type of insurance you'll need in this case is non-owner car insurance.

What Is Non-Owner Car Insurance?

Normally, you purchase auto insurance for a car you own or lease. You give the insurance company the car's make, model, and VIN, and they give you a quote for you as a driver and the car you own. On the other hand, non-owner car insurance is a policy that covers you without owning a car. It protects you when borrowing or renting a vehicle but has limited coverage.

How Non-Owner Car Insurance Works

Most insurance companies offer car insurance for non car owners. Buying non-owners car insurance provides liability coverage when you're driving a car you don't own. This coverage doesn't compensate you for damages to the car you're driving. Instead, it protects other drivers if you cause an accident. A typical non-owner car insurance policy provides other drivers with compensation covering:

  • Bodily injury
  • Medical expenses
  • Property damage

It may also include other types of coverage, such as underinsured motorist coverage, and you may be able to add additional coverage types or increase coverage limits. When looking for auto insurance, always compare the coverage types, limits, and premiums before purchasing a policy.

Non-owner car insurance only covers the policyholder, which means your plan wouldn't cover anyone else. Additionally, it serves as a secondary plan, which means it only covers an accident if the owner of the vehicle you're driving has coverage. For example, if you cause an accident when borrowing a friend's car, your friend's car insurance should cover the accident first. If the policy doesn't have enough coverage, your non-owner insurance would kick in and cover the remaining claim amount.

Who Needs Non-Owner Car Insurance?

You might wonder, "Who needs car insurance?" The answer is simple: anyone who drives. Traditional car insurance is excellent if you own a car, while non-owner car insurance is helpful in the following situations:

  • You do not own a car
  • You often borrow other people's cars
  • You regularly utilize car-sharing services
  • You rent cars often

A non-owner policy is critical if you drive a friend's car, a rental vehicle, or a ride-share. It is also popular to purchase non-owner auto insurance to avoid a gap in coverage. Gaps in auto insurance can lead to insurance cost increases, primarily because insurance companies view gaps as risks.

You might also purchase a non-owner insurance policy if you're an excluded driver on your family's policy. As an excluded driver, driving someone else's car can be risky, as you would not be covered. Purchasing a non-owner policy gives you the protection you need to borrow someone's vehicle.

Differences Between Non-Owner and Traditional Car Insurance

Traditional car insurance covers you and your car and allows you to choose more coverage options, including:

  • Personal injury protection (PIP): PIP provides coverage for lost wages and medical expenses for you or passengers in your car if you’re involved in an accident.
  • Comprehensive coverage: You can add comprehensive insurance to cover many non-driving-related damages they might experience, including theft and animal collisions.
  • Collision coverage: Collision coverage protects your vehicle after a collision by paying off your loan or compensating you for your car's actual value.

Non-owner insurance is a liability-only coverage plan, which means it only covers other drivers and their vehicles. You can't add collision or comprehensive coverages to a non-owner plan. As a result, you'll see car insurance cost differences between these two policy types, with non-owner plans costing less.

Benefits of Non-Owner Car Insurance

Auto insurance for non car owners provides several benefits for drivers:

  • It gives you peace of mind when borrowing or renting cars. You'll have confidence in knowing you're covered.
  • It gives others peace of mind when lending you their vehicles. Car owners might be more inclined to lend their vehicles, knowing you have a separate policy.
  • You can use it in between owning vehicles to avoid a gap in coverage. Getting car insurance after a gap in coverage may be more challenging and costly.

Having car insurance, regardless of whether you own a car or not, offers financial protection for drivers.

How to Obtain Non-Owner Car Insurance

The simplest way to obtain non-owner car insurance is through EverQuote. You can request quotes for non-owner auto insurance through EverQuote to look for the best policies for your situation. As with any insurance, comparing quotes is vital to ensure you get the coverage you need for the right price. Read through the policy limits and terms, as understanding policy terms is important when buying an auto insurance plan.

Frequently Asked Questions (FAQs)

What does non-owner car insurance not cover?
+
Non-owner car insurance doesn't cover property damage you experience to the car you're driving. It also doesn't cover any other damages you experience from an accident you cause, including medical payments or lost wages.
Can I drive a car without insurance?
+
You can drive a car without insurance if the car owner has coverage; however, the coverage might not be sufficient. You can't drive a car without insurance if you're an excluded driver on the car owner's policy.
How does this insurance affect my driving record?
+
Non-owner car insurance doesn't have any adverse effects on your driving record or auto insurance policy. On the contrary, a non-owner policy can prevent you from having a gap in your coverage during times when you don't own a vehicle.