What is Non-Owner Car Insurance, and Do You Need It?

Non-owner car insurance is a minimal coverage policy designed specifically for drivers who don’t own a vehicle. While non-owner insurance doesn’t offer full coverage, it’s a good option for people who don’t own a car, but have specific insurance needs—and only costs approximately $36 per month.

What does non-owner car insurance cover?

Non-owner car insurance offers similar types of coverage to standard state minimum car insurance. These policies typically include:

• Bodily injury liability coverage: Covers medical bills and related expenses up to your liability limits if you cause an accident in a car you don’t own.
• Property damage liability coverage: Covers damages to another person’s property if you cause an accident in a car you don’t own.
• Other types of car insurance required in your state: If your state requires it, non-owner coverage will include coverage types like uninsured motorist coverage (UM/UIM), medical payments coverage (MedPay), and personal injury protection (PIP).

However, because a non-owner auto insurance policy counts as secondary coverage, the vehicle owner’s auto insurance will pay out first in the event of an accident. Once the owner’s coverage limits have been reached, your non-owner policy will kick in.

Learn more: Everything you need to know about temporary car insurance

What isn’t covered by non-owner insurance

Any damages to the vehicle you’re driving will need to be paid out-of-pocket if the owner does not carry collision coverage insurance. Unless you have MedPay or PIP on your non-owner policy, your medical expenses won’t be covered by this type of insurance, either.

Since you don’t own a vehicle, certain add-ons—like rental reimbursement and roadside assistance—won’t be available for your non-owner policy. For the same reason, a non-owner policy will never extend to any other drivers in your household.

How non-owner car insurance works

When you carry non-owner insurance, you’ll have coverage if you get into an accident while driving a car that doesn’t belong to you. This is helpful for rental vehicles, car-sharing services, and any vehicle(s) that friends allow you to borrow on occasion.

Since the other driver’s costs exceed your friend’s auto insurance coverage limits, your non-owner coverage would kick in to cover the remaining $15,000 in medical bills and $15,000 in property damage costs.

Non-owner insurance policies are also a great option if you’re required to file an SR-22 insurance certificate as a condition of your driver’s license. With non-owner SR-22 insurance, you’ll be able to meet all court-mandated insurance requirements without purchasing a new car.

How much does non-owner car insurance cost?

On average, drivers can expect to pay between $200 and $750 per year for a non-owner insurance policy.

If that feels like a pretty big range, that’s because it is; insurance rates for non-owner policies can be dramatically affected by things like your driving record and your zip code. Your driving history is particularly important, as insurance providers may be wary of people with poor driving records who seek out a non-owner car insurance policy.

Drivers who are considered high-risk drivers due to SR-22 filing requirements or violations like speeding tickets, DUIs, or reckless driving will see significantly higher rates than drivers with a good record.

To get an accurate cost estimate, you’ll need to get car insurance quotes from at least three different providers.

The best car insurance providers for non-owner insurance

Several insurance companies offer non-owner car insurance. Here’s how much drivers pay on average for non-owner car insurance from different providers:

However, different car insurance companies use different algorithms to determine their rates, meaning the only accurate way to estimate your premiums is by gathering quotes from at least three providers.

Do you need non-owner car insurance?

You might need non-owner car insurance if you:

• Occasionally borrow vehicles from people you don’t live with. When you borrow a car from someone you’re usually covered under their policy as a permitted driver—but only up to their chosen limits. Non-owner coverage can give you extra protection.
• Rent cars often. Rental car insurance can cost $20 to $30 per day depending on your rental company, so non-owner coverage could be more affordable. But remember: a non-owner policy only provides liability protection so it won’t pay for any damage to your rental car¹
• Are temporarily without a car. If you don’t have a car but are planning to get another one soon, a non-owner policy will help you maintain continuous coverage and avoid a car insurance lapse.
• Have an SR-22 requirement but no vehicle. If you’re required to file an SR-22 certificate, you must maintain an active policy and have proof of insurance to keep your driver’s license—even if you don’t have a car. A non-owner SR-22 insurance policy allows you to meet state minimum liability insurance requirements and satisfy the court mandate.
• Are trying to get a new license in a state with an insurance requirement. Most teen drivers can just be added to their parents’ insurance, but if that’s not an option, a non-owner policy may be the solution.
• Frequently use car-sharing services. Companies like Zipcar, Turo, or GetAround typically provide some insurance, but a non-owner policy can provide added protection. Keep in mind that some insurers exclude claims from accidents where the driver has rented a vehicle through a car share service.

If any of these apply to you and you don’t own a vehicle, non-owner car insurance is a great option that could even save you money in certain circumstances.

When you might not need non-owner car insurance

In some cases, non-owner insurance won’t be worth it.

If you only rent vehicles occasionally, for example, it may be cheaper to purchase rental car insurance. Alternatively, if you live with someone who owns a vehicle, they should contact their insurance agent to add you as a named driver on their existing insurance policy. This will ensure that you’re covered while simultaneously making you ineligible for non-owner insurance.

Methodology

To determine average insurance rates, Jerry’s experts analyze thousands of policies purchased by our customers. Our data are based on real policy premiums for all customers in a given category.

Where real customer data is unavailable, Jerry’s editorial team researches average rates using expert sources from Forbes, NerdWallet, ValuePenguin, WalletHub, The Zebra, and CarInsurance.com. Our data shows the average of the data shared by those sources.

Source

1. https://www.iii.org/article/rental-car-insurance ↩︎

MEET OUR EXPERTS

Liz Jenson

Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.

Sarah Gray

Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car. Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.