What Is NonOwner Car Insurance? (And How Much It Costs)

If you frequently rent or borrow cars, you may need auto insurance even if you don't own a car. This type of insurance is called non-owners car insurance, and it provides you with a certain level of protection in the event of an accident.

Non-owner auto insurance is for licensed drivers who do not own a car. In big cities like New York or Chicago, people may rely on public transportation to get around every day, but rent a car when they have to go out of town.

Let's take a look at the coverage you get with car insurance without a title and how much you can pay.

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What is car insurance for non-owners?

Non-owner auto insurance is liability insurance for licensed drivers who do not own a vehicle. This coverage is also known as non-driver insurance.

Non-owner auto insurance provides coverage for property damage or injuries to other drivers in an accident. This will help protect you from financial liability in an accident.

In addition to bodily injury and property damage liability coverage, non-owner auto insurance policies may offer insured or uninsured motorist liability coverage, medical benefits and more.

How much does car insurance cost for non-owners?

Non-owner auto insurance is typically less expensive than comprehensive auto insurance. This is because non-owner car insurance does not have collision coverage or comprehensive coverage that pays for damage to any of your vehicles. Since you don't own a car, you don't need additional accidents or extensive coverage.

The average cost of auto insurance for non-owners is $474 per year, but the actual price you pay depends on where you live and your insurance company. There are many other factors that affect auto insurance rates. These factors may also apply to non-owner auto insurance, including:

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To get the best price, it's important to get auto insurance quotes from different insurance companies and compare costs and coverage.

What exactly does non-owner car insurance cover?

Non-owner auto insurance protects you from various liabilities. Standard car insurance for non-owners offers you:

Personal Injury Liability Coverage – This coverage helps pay for medical expenses related to injuries caused by other drivers in a car accident caused by you.

Property Damage Liability Coverage – This coverage helps cover damage to your vehicle or other property as a result of an accident caused by your fault.

Most states require all licensed drivers to carry a minimum level of liability insurance. For example, drivers in Wisconsin must have the following minimums:

Bodily injury coverage is $25,000 per person

$50,000 personal injury liability coverage per accident

Property Damage Coverage coverage $10,000 per accident

Additional coverage for holders without a policy

Some non-owner auto insurance policies may offer additional coverage in addition to liability coverage:

Medical benefits – Also known as personal injury protection (PIP), this insurance helps you and your passengers pay your medical bills in the event of an accident, regardless of who is at fault.

Uninsured/Insured Motorist Coverage – This coverage helps pay for medical bills or other damages if you have an accident without insurance or underinsured.

Auto Rental Liability Coverage – This coverage pays for injuries or property damage caused by an accident while driving a rental car. It may also help cover medical expenses for you or your passengers, but does not cover damage to the rental car.

If you frequently rent a car, getting non-owner car insurance may be cheaper than buying rental car insurance through a car rental agency. Remember that rental cars are already insured, so technically you don't need insurance to drive them, however, you are responsible for any damage to the vehicle you rent.

Coverage not offered by auto insurance you don't own

Non-owner auto insurance does not offer comprehensive or collision coverage. This coverage is generally offered together as comprehensive coverage.

Comprehensive insurance helps cover non-collision damage such as theft, vandalism, or weather-related damage. Collision coverage helps cover damage after an accident, whether it's a car accident, hitting a telephone pole, or colliding with another vehicle.

Who is non-owner car insurance for?

Non-owner car insurance is great if you don't own a car, but frequently rent or borrow cars from friends or use a car-sharing service like Getaround or Zipcar. You can get non-owner auto insurance if:

You must submit an SR-22 form: If you are involved in an accident or an accident that is sufficient to suspend your driver's license, you may be required to carry an SR-22 form of insurance showing that you have the minimum liability coverage requirements . . . It depends on your situation. Your insurance company may offer a non-owner auto coverage policy that meets proof of insurance requirements, even if you don't own a car.

You want to avoid gaps in your insurance coverage – Gaps or loopholes in your car insurance can lead to higher rates on the road, as insurance companies may perceive you as a high-risk driver. Getting non-owner auto insurance keeps you covered until you switch to a standard policy.

An ownerless auto policy only covers the insured driver, not other drivers in the same household, such as the driver's spouse or minor children.

How to find car insurance for non-owners

Not all insurance companies offer car insurance for non-owners, and if they do, they may only offer it to existing customers. This type of coverage may not be available in your state.

There are several things you can do to save money on car insurance if non-owners car insurance is available in your state. This includes shopping, getting discounts, and maintaining a good credit score.

Nearby shopping

Some insurance companies may only offer non-owner auto insurance to existing customers. Check with your current insurance company to see if they offer one.

You should also check with the three or four major auto insurance companies to see if they offer non-owners insurance for new customers and, if so, what their auto insurance rates are. The cost of car insurance for non-owners can vary depending on the insurance company, your situation, and many other factors.

Ask for the discount

Most insurance companies offer discounts to their clients. Ask if the discount applies to car insurance you don't own. Available discounts may include:

Maintain your credit score

Your credit score and how diligently you pay your bills on time can affect how much you pay for auto insurance. The lower your credit score, the higher the premium charged by the insurance company. That's why a good credit score will help you get lower premiums.

Frequently asked questions about auto insurance without an owner. What companies offer car insurance for non-owners?

Several major insurance companies offer auto insurance for non-owners, including Progressive, GEICO, Nationwide, and State Farm. However, this coverage may not be available in all states, so check with your insurance agent.

Read our reviews of Progressive, GEICO, and State Farm to learn more about these auto insurance providers.

Can you insure a car that is not yours?

You can't buy insurance on a car you don't own. Non-owned auto insurance covers you if you drive a vehicle that you don't own without coverage for the vehicle.

If you borrowed your friend's car and were in an accident by mistake, non-owner auto insurance may be secondary coverage to the auto insurance your friend already has. When the liability limit on your friend's insurance policy is exhausted, non-owner auto insurance kicks in and covers the remaining liability costs.

However, non-owner car insurance does not help cover the cost of repairing or replacing the car you drive.

Does auto insurance cover homeowners who don't have a car?

Yes, non-owner auto insurance provides liability coverage if you are involved in an accident in a rental car. Non-owner auto insurance is sometimes cheaper than car rental company liability insurance. However, a liability policy does not cover the vehicle you are driving and only covers bodily injury or property damage caused by another driver.

Last line

You can get auto insurance coverage even if you don't own a car. Non-owner car insurance provides liability protection when you rent a car or borrow a friend's car. Non-owner car insurance is also helpful if you want permanent coverage when you don't own a car.

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