Even people who don’t own a car may need auto insurance. Non-owner car insurance is a policy for people who don’t have a car, but who need some liability coverage if they’re using another person’s car, or if they’re renting one. For drivers who cause damage or an injury due to an accident, liability insurance provides financial protection.
Along with liability insurance, some non-owner policies will also include additional coverage such as uninsured/underinsured motorist coverage and medical coverage. What it won’t usually cover is collision insurance or comprehensive insurance. Overall, the cost of non-owner car insurance is lower than for similar coverage for a car you own.
On this page:
- Best Non-Owner Car Insurance
- Non-Owner Car Insurance Explained
Best Non-Owner Car Insurance
Consider these three non-owner car insurance options:
Titan Insurance offers non-owner insurance including liability coverage for someone operating a vehicle not owned by the insured person. Titan will also provide non-owner insurance for someone who lives in the same house as the person who’s insured. Its overall coverage is inexpensive. Titan is part of the Nationwide company with local Titan insurance agents and brokers.
Geico has a few different options for someone who doesn’t own a vehicle but needs coverage, including rental car insurance. Rental car insurance is a good option for someone who doesn’t have a regular auto insurance policy with rental car insurance included, or who doesn’t have coverage from their credit card company. Someone who frequently rents cars might also go with Geico if their existing rental car coverage is limited.
Geico also has non-owner liability policies available. Geico advises people to first make sure they don’t have any coverage under their homeowners or renters insurance policy. Another option Geico suggests is an umbrella policy, which can help people reduce their liability in different situations, including renting a car. Geico is the only option with bundling discounts for non-owner policies, so they’re likely to be the cheapest option for most people.
The General, which is known for inexpensive auto insurance policies, does offer non-owner insurance. The General offers insurance for drivers who have a history of accidents or violations, and drivers who don’t have great credit, as well as drivers who have let their insurance lapse. The General also works to make sure they keep their down payments low, and they offer inexpensive monthly payment options.
Non-Owner Car Insurance Explained
What Does Non-Owner Car Insurance Cover?
For the most part, non-owner car insurance works the same way traditional car insurance does, but the coverage levels are different. Again, non-owner policies typically only offer liability coverage, which includes bodily injury or property damage resulting from an accident that you caused. Personal Injury Protection is coverage for medical expenses and loss of wages for you, resulting from an accident that you caused.
These policies can also cover uninsured/underinsured motorist coverage. This includes medical expenses or property damage that you incur because you’re in an accident with someone who has no insurance or very little insurance coverage.
Non-owner car insurance doesn’t cover collision, which is damage done to the vehicle. The vehicle damage would instead be covered by the car owner’s policy. Comprehensive coverage isn’t available either, which is basically damage resulting from any other cause. Again, this should be covered by the car owner’s policy.
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When to Purchasing Non-Owner Car Insurance
There are a few situations where someone might consider non-owner car insurance. One is if they don’t own a car, but they frequently rent cars. For example, if you live in a big city and don’t want the cost of owning a car, but you often travel for work and rent cars, you may want a non-owner insurance policy.
Another situation would be someone convicted of a serious motor vehicle violation. If someone has a serious conviction that led to their license being revoked, they may need to show they have car insurance to get their driver’s license back.
If someone doesn’t currently have a car but doesn’t want their insurance coverage to lapse, they might consider a non-owner policy as well. If you let your coverage end when you’re between vehicles, getting a new policy can be more expensive.
On the other hand, some people may not benefit from non-owner car insurance. If you’re not regularly borrowing cars or renting cars, you probably don’t need it. If you’re borrowing a car for the long-term, you will probably need more comprehensive insurance than what’s provided with a non-owner policy. And if you live with someone else, such as your parents or a sibling, it’s usually better to be added as a driver on their owner policy instead of getting a separate non-owner policy.
While you may benefit from a non-owner policy if you drive a rental car occasionally for work, in some cases you may be better off with a commercial non-owner policy. Finally, if you don’t have a driver’s license, you won’t qualify for non-owner insurance.
How Much Does a Non-Owner Car Insurance Policy Cost?
Non-owner car insurance costs vary depending on where you live, how often you’ll be using a car, your driving history, and how much liability coverage you opt for. Someone who’s considered a high-risk driver will pay more. Factors that can designate you as high-risk include having a DUI conviction, reckless driving, and driving without insurance. Also, if you’re getting non-owner insurance for a license reinstatement, you may have to pay more for higher limits on liability coverage.
If a 25-year-old male with a clean driving record were to get non-owner coverage in southern California, it would cost on average $438, according to Insurance.com. For a single, 25-year-old male with a DUI, non-owner insurance would be on average $852 in Southern California. For a female with a clean driving record, who’s 40 and lives in Southern California, the average cost is $368. These average costs are lower than the average cost of a traditional car insurance policy, which is around $900 a year.
What to Look for in a Non-Owner Insurance Policy
Most non-owner insurance policies are fairly similar, with prices likely being the biggest difference among them. When you’re buying non-owner car insurance you only need your driver’s license number and payment. In some states, you may also need to file an SR-22, which is a document required for high-risk insurance policies.
Non-Owner Car Insurance Summary
Overall, there are some circumstances where you might consider a non-owner car insurance policy, but these situations are not common and not always necessary just because you don’t own a car. For example, non-owner car insurance may not be the best option if you are regularly driving someone’s car and could be added to their insurance. If you do decide that a non-owner insurance policy is right for you, compare prices and expect to pay less than you would for a regular car insurance policy, although with less coverage.