Non-owner car insurance: What is it, how much does it cost, and who needs it?

What is non-owner car insurance?

Non-owner car insurance is a liability policy for people who don't own a vehicle but frequently drive cars owned by others, rent cars or use car-sharing services. It is secondary coverage, which means it pays only after the vehicle owner's policy limits are exhausted, and it does not cover damage to the car you are driving or your own injuries.

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 does non-owner car insurance cost?

The average rate for a non-owner car insurance policy is $407 per year, according to Insurance.com data. GEICO has the lowest rate for non-owner car insurance at an average of $458 a year, unless you are eligible for military insurer USAA, which averages $207 a year. These rates are well below the average cost of a state minimum policy.

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
Allstate	$71	$847
Farmers	$54	$644
GEICO	$35	$420
Nationwide	$55	$659
Progressive	$49	$589
State Farm	$30	$361
Travelers	$36	$434
USAA	$16	$192

Read our methodology

How does non-owner car insurance work?

Non-owner car insurance is secondary liability coverage; the owner’s policy applies first, and the non-owner policy will pay out any remaining damages that exceed the owner's limits, up to your own policy's limits. If the total damages fall within the owner's limits, your non-owner policy pays nothing.

Here's an example of how non-owner car insurance works:

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. In all states, this includes bodily injury and property damage liability. In some states, it also includes personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault., medical payments and uninsured/underinsured motorist coverage.

A basic 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?

Non-owner car insurance does not cover damage to the car you're driving, your own injuries in states without no-fault insuranceAn auto insurance system where medical expenses are covered by your insurer regardless of fault. Personal injury protection (PIP) and medical payments (MedPay) are no-fault insurance coverages., theft or vandalism to the car, towing and labor or rental car reimbursement. It is strictly a liability policy for damages you cause to others.

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

What non-owner car insurance covers and what it doesn't
Coverage type	Included?
Bodily injury liability to others	Yes, all states
Property damage to others	Yes, all states
Personal injury protection/medical payments	Only where required by state law
Uninsured/underinsured motorist coverage	Only where required by state law
Damage to the car you are driving	No
Towing and labor	No
Rental car reimbursement	No

Read our methodology

Who should get non-owner car insurance?

You should get non-owner car insurance if you don't own a car but regularly drive vehicles owned by others, frequently rent cars, need to maintain continuous coverage in between vehicles or are required to file an SR-22 to reinstate your license. You don't need non-owner car insurance if you own a car, only drive vehicles belonging to people in your household or only rarely borrow vehicles.

EXPERT TIP: 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.

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

Read our methodology

How much does non-owner car insurance cost in your 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 cost	Average 6-month cost	Average monthly cost
Alabama	$469	$234	$39
Alaska	$296	$148	$25
Arizona	$652	$326	$54
Arkansas	$440	$220	$37
California	$500	$250	$42
Colorado	$506	$253	$42
Connecticut	$1,054	$527	$88
Delaware	$936	$468	$78
Florida	$668	$334	$56
Georgia	$510	$255	$43
Hawaii	$389	$194	$32
Idaho	$297	$148	$25
Illinois	$518	$259	$43
Indiana	$320	$160	$27
Iowa	$280	$140	$23
Kansas	$408	$204	$34
Kentucky	$499	$250	$42
Louisiana	$410	$205	$34
Maine	$271	$135	$23
Maryland	$516	$258	$43
Massachusetts	$686	$343	$57
Michigan	$855	$427	$71
Minnesota	$352	$176	$29
Mississippi	$474	$237	$40
Missouri	$346	$173	$29
Montana	$412	$206	$34
Nebraska	$402	$201	$34
Nevada	$823	$412	$69
New Hampshire	$437	$219	$36
New Jersey	$1,141	$571	$95
New Mexico	$413	$206	$34
New York	$606	$303	$50
North Carolina	$681	$341	$57
North Dakota	$353	$176	$29
Ohio	$291	$146	$24
Oklahoma	$477	$238	$40
Oregon	$644	$322	$54
Pennsylvania	$279	$140	$23
Rhode Island	$511	$256	$43
South Carolina	$448	$224	$37
South Dakota	$216	$108	$18
Tennessee	$507	$253	$42
Texas	$564	$282	$47
Utah	$658	$329	$55
Vermont	$460	$230	$38
Virginia	$549	$275	$46
Washington	$516	$258	$43
Washington, D.C.	$661	$330	$55
West Virginia	$442	$221	$37
Wisconsin	$398	$199	$33
Wyoming	$270	$135	$22

Read our methodology

What does non-owner car insurance cover? How to buy non-owner car insurance Non-owner SR-22 insurance Cheapest companies for non-owner car insurance

Is non-owner car insurance cheaper than standard car insurance?

Yes, a non-owner policy is cheaper than a state minimum car insurance policy with every major carrierAn insurance carrier is the company that provides your car insurance policy and pays claims., based on Insurance.com data. The difference ranges from $44 a year with Progressive to $470 a year with State Farm. However, a non-owner policy is not a replacement for a state minimum policy; if you own a car, you must carry at least the state minimum.

Company	Average state minimum rate	Average non-owner rate	Difference
GEICO	$539	$458	$81
Progressive	$752	$708	$44
Travelers	$767	$464	$303
Nationwide	$932	$758	$174
Allstate	$946	$826	$120
Farmers	$950	$615	$335
State Farm	$1,025	$555	$470
USAA	$406	$207	$199

Read our methodology

Does non-owner insurance replace rental car insurance?

Non-owner car insurance partially replaces rental car insurance. It provides liability coverage above when you drive a rental car, but does not cover any damage to the rental car if you cause an accident. If you cause an accident in a rental car and carry only a non-owner policy, you are personally responsible for the cost of repairing or replacing the rental. Always purchase physical damage coverage from the rental company, unless you have a credit card that provides it; you'll need to use that card for the rental for the coverage to apply.

How to get non-owner car insurance

To get non-owner car insurance, contact insurers directly by phone or through an agent. Non-owner car insurance is not available for purchase online. Compare quotes from multiple companies before buying a policy, as rates vary; GEICO's average rate is $558, while Allstate charges $826.

Follow these steps

Contact insurance companies or work with an agent to request quotes. Have your driver's license ready.
Compare the quotes and choose a policy. Remember that the cheapest rate doesn't make it the best choice; choose a company with a good reputation.
Make a premium payment to start the coverage. Check the policy start date and time to ensure you're covered before you drive.

Does non-owner car insurance affect your insurance history and future rates?

Yes, a non-owner policy affects your insurance history and can impact future rates. It provides you with a continuous insurance history, preventing a lapse in coverage that can result in higher insurance rates. Any claims you file against the policy will remain on your insurance record and may also affect future rates, just like any claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. you have filed.

Methodology

Non-owner car insurance rates were fielded by Quadrant Information Services in all 50 states and Washington, D.C. for the following sample coverage:

State minimum liability insurance coverage
A 40-year-old driver
Good credit
A clean driving record

Because non-owner car insurance isn't based on a particular car, no specific model is represented.

Standard car insurance rates are based on state minimum car insurance coverage with the following profile:

A 40-year-old driver
Good credit
A clean driving record
A Honda Accord LX
A 12-mile commute, 10,000 miles a year

National averages are derived based on all state minimum average rates and do not represent a specific coverage level, as requirements vary by state.

Learn more about our data and methodology.

FAQ: Non-owner car insurance

Can you get car insurance without a car?

Yes, you can get car insurance without owning a car with a non-owner policy. It provides bodily injury and property damage liability coverage to pay for damage to others when you are at fault. It does not cover damage to the vehicle you are driving, and is secondary to the owner's car insurance policy, kicking in only after that policy is exhausted. It costs an average of $506 a year.

Which companies offer non owner car insurance?

Most major car insurance companies offer non-owner insurance policies, including State Farm, GEICO, Allstate and USAA. GEICO has the lowest non-owner car insurance rates at $458 a year, unless you are a military member qualified for USAA, where rates average $207 a year.

When should you not consider non-owner auto insurance?

You should not get non-owner car insurance if you own a car or only drive vehicles owned by other members of your household, if you borrow or rent cars only occasionally or if you drive a non-owned car for business purposes. In the first two cases, standard car insurance applies; in the second, you're covered by permissive use under the owner's policy, and in the case of business use, you need a commercial policy.

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