- What is non-owner car insurance?
- How much is non-owner car insurance?
- How does non-owner car insurance work?
- What does non-owner car insurance cover?
- What isn’t covered by non-owner car insurance?
- Who should get non-owner car insurance?
- How much non-owner car insurance costs by state
- Related Article
- Non-owner vs. regular car insurance
- Is non-owner car insurance right for you?
- Does non-owner insurance replace rental car insurance?
- How to get non-owner car insurance
- Methodology
- Non-owner car insurance: Frequently asked questions
What is non-owner car insurance?
Non-owner car insurance is for people who don't own a vehicle. It provides an extra layer of protection for people who frequently rent cars, borrow cars from friends or family or use car-sharing services. It covers injuries and damage to others if you’re in an at-fault accident in a car you don’t own and the vehicle owner's policy limits are exceeded.
Non-owner car insurance includes:
- Liability coverage: This pays for bodily injury and property damage that you might cause to others in an accident while driving a vehicle you don't own. It does not pay for damages to the vehicle you are driving or for your injuries.
- Uninsured/underinsured motorist coverage: Some non-owner policies also include uninsured/underinsured motorist coverage, which protects you if you're involved in an accident with a driver who doesn't have adequate insurance.
- Medical payments coverage: This covers medical expenses for you and your passengers after an accident, regardless of who is at fault.
How much is non-owner car insurance?
The average rate for a non-owner car insurance policy is $325 a year, based on an analysis of rates by Insurance.com. That’s well below the average cost of car insurance for a standard policy.
Non-owner car insurance is generally more affordable than traditional car insurance. This is primarily because it provides less comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible., focusing mainly on liability rather than covering physical damage to a vehicle.
Insurers view those who don’t own cars as less risky because they drive less frequently. Factors influencing cost include:
- The amount of liability insurance coverage you want
- Your driving history
- Your geographical location
You can find the cheapest non-owner rates by shopping around. Here’s a look at the cheapest companies for non-owner car insurance.
| Company | Average monthly rate | Average annual rate |
|---|---|---|
| Geico | $28 | $333 |
| USAA | $15 | $177 |
| State Farm | $22 | $262 |
| Progressive | $45 | $536 |
| Travelers | $28 | $338 |
| Nationwide | $41 | $490 |
| Farmers | $41 | $494 |
| Allstate | $53 | $641 |
How does non-owner car insurance work?
Non-owner car insurance works as secondary liability coverage. That means the owner’s policy applies first, and the non-owner policy will pay out any remaining damages.
For example, let's say you have a non-owner policy with $40,000 in property damage liability, and the car's owner has $20,000 in property damage liability. You cause an accident driving that car, totaling $30,000 in damages, $10,000 beyond the owner's limits. The owner's policy will pay the first $20,000. Your non-owner policy will cover the extra $10,000.
Without the non-owner policy, you could be sued for that $10,000.
What does non-owner car insurance cover?
Non-owner car insurance covers anything required by law in your state as part of a minimum-coverage policy.
A non-owner policy covers:
- Bodily injury to others
- Damage to others’ property
And in some states, where required by law, it also covers:
- Injuries to you and your passengers (via personal injury protection or medical payments)
- Bodily injury or property damage caused by an uninsured or underinsured motorist
What isn’t covered by non-owner car insurance?
There are some specific things a non-owner car insurance policy will not cover. They include:
- Damage to the car you were driving in an at-fault accident
- Theft, vandalism, or any other non-collision damage to the car while in your possession
- Towing and labor
- Rental car reimbursement
- Your own injuries if you are not in a no-fault state
Who should get non-owner car insurance?
While not everyone who doesn’t own a car needs non-owner car insurance, it fills the gap for people who drive occasionally but don’t have their own vehicle.
Non-owner auto insurance is a good fit if you frequently rent or borrow a car or are trying to keep continuous coverage when you're in between vehicles.
Additionally, non-owner car insurance is a good option for high-risk drivers who must have a liability policy to keep their driver’s license or file an SR-22.
Here’s a quick reference guide to who should and shouldn’t buy a non-owner car insurance policy.
| You should buy non-owner car insurance if you don't own a car and: | You shouldn’t buy non-owner car insurance if: |
|---|---|
| Often drive cars owned by someone else | You own a car |
| Frequently rent cars | You only drive cars owned by others in your household |
| Are in between cars and don’t want a coverage lapse | You borrow or rent cars only occasionally |
| Need proof of insurance or an SR-22 to reinstate your license | You drive a non-owned car for business purposes |
How much non-owner car insurance costs by state
Auto insurance rates vary by state, including those for non-owner car insurance. The table below shows the average cost of non-owner car insurance by state.
| State | Average annual non-owner car insurance cost | Average 6-month premium | Average monthly premium |
|---|---|---|---|
| Alaska | $260 | $130 | $22 |
| Alabama | $380 | $190 | $32 |
| Arkansas | $266 | $133 | $22 |
| Arizona | $396 | $198 | $33 |
| California | $299 | $149 | $25 |
| Colorado | $282 | $141 | $23 |
| Connecticut | $395 | $198 | $33 |
| Washington, D.C. | $310 | $155 | $26 |
| Delaware | $344 | $172 | $29 |
| Florida | $545 | $272 | $45 |
| Georgia | $312 | $156 | $26 |
| Hawaii | $395 | $198 | $33 |
| Iowa | $153 | $76 | $13 |
| Idaho | $187 | $94 | $16 |
| Illinois | $279 | $140 | $23 |
| Indiana | $259 | $129 | $22 |
| Kansas | $274 | $137 | $23 |
| Kentucky | $375 | $188 | $31 |
| Louisiana | $330 | $165 | $27 |
| Massachusetts | $445 | $223 | $37 |
| Maryland | $438 | $219 | $37 |
| Maine | $238 | $119 | $20 |
| Michigan | $513 | $257 | $43 |
| Minnesota | $302 | $151 | $25 |
| Missouri | $358 | $179 | $30 |
| Mississippi | $321 | $161 | $27 |
| Montana | $299 | $149 | $25 |
| North Carolina | $470 | $235 | $39 |
| North Dakota | $209 | $105 | $17 |
| Nebraska | $186 | $93 | $16 |
| New Hampshire | $318 | $159 | $26 |
| New Jersey | $459 | $230 | $38 |
| New Mexico | $293 | $147 | $24 |
| Nevada | $346 | $173 | $29 |
| New York | $421 | $211 | $35 |
| Ohio | $214 | $107 | $18 |
| Oklahoma | $242 | $121 | $20 |
| Oregon | $441 | $220 | $37 |
| Pennsylvania | $263 | $131 | $22 |
| Rhode Island | $518 | $259 | $43 |
| South Carolina | $368 | $184 | $31 |
| South Dakota | $170 | $85 | $14 |
| Tennessee | $363 | $182 | $30 |
| Texas | $447 | $224 | $37 |
| Utah | $444 | $222 | $37 |
| Virginia | $290 | $145 | $24 |
| Vermont | $296 | $148 | $25 |
| Washington | $349 | $174 | $29 |
| Wisconsin | $230 | $115 | $19 |
| West Virginia | $367 | $183 | $31 |
| Wyoming | $215 | $107 | $18 |
Non-owner vs. regular car insurance
A non-owner insurance policy is cheaper than a state minimum car insurance policy in most cases. Below, you can compare non-owner car insurance cost vs. a traditional car insurance policy. Bear in mind that you can only get a traditional policy if you don't own a car.
| Company | Average annual premium (state minimum) | Non-owner car insurance premium |
|---|---|---|
| State Farm | $502 | $262 |
| Geico | $405 | $333 |
| Travelers | $518 | $338 |
| Nationwide | $532 | $490 |
| Farmers | $701 | $494 |
| Progressive | $549 | $539 |
| Allstate | $700 | $641 |
| USAA | $335 | $177 |
Is non-owner car insurance right for you?
Determining whether non-owner car insurance is right for you depends on your driving habits and insurance needs. If you frequently drive a car you don't own, you should get non-owner car insurance. This ensures that you’re financially protected against potential lawsuits and medical expenses that can arise from an accident, even if the vehicle isn't yours.
If you have a gap in car ownership, obtaining a non-owner insurance policy to maintain continuous insurance coverage is a good idea. Continuous coverage can make you eligible for discounted rates and keep you from rate hikes typically given to those with a coverage gap.
Note that you shouldn't get non-owner car insurance if you drive cars owned by members of your household. In this situation, you should instead be added to the household car insurance policy. Most insurance companies require that all licensed drivers in a household be listed on the policy.
Does non-owner insurance replace rental car insurance?
Non-owner car insurance can partially replace rental car insurance. It provides liability coverage above when you drive a rental car, but won't cover any damage to the car if you cause an accident.
Rental car companies will sell you a temporary policy to cover the car; if you only carry a non-owner liability policy, you should purchase physical damage coverage from the rental company. If you don't, you will be personally responsible for any damage to the car.
How to get non-owner car insurance
Buying non-owner car insurance is similar to buying any other policy, except that most companies don't sell non-owners insurance online. to buy a policy:
- Contact insurance companies or work with an agent to request quotes.
- Compare the quotes and choose a policy.
- Make a premium payment to start the coverage.
Methodology
Insurance.com commissioned Quadrant Data Services to field quotes for non-owner car insurance for a 40-year-old male driver with a clean record and good credit.
– Mel Duvall contributed to this story.
Non-owner car insurance: Frequently asked questions
Can you get car insurance without a car?
Yes, non-owner car insurance provides car insurance coverage if you don’t own a car.
It provides essential protection for those who drive occasionally or temporarily use vehicles owned by others. By offering liability coverage, non-owner car insurance ensures you’re financially protected in case of an accident, even when you don’t own a car.
Which companies offer non owner car insurance?
Most car insurance companies offer non-owner insurance policies. This includes big names like State Farm, Geico, Allstate and USAA.
When should you not consider non-owner auto insurance?
You should not consider a non-owner auto insurance policy if you own a car. You also likely don't need the coverage if you rarely drive.
Is non-owner car insurance cheaper?
Yes, a non-owner policy is generally cheaper because of reduced risk; drivers who don't own a car don't drive as frequently.
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