Non-owner car insurance is liability insurance for people who don’t own a car but often drive cars owned by others. A non-owner policy covers injuries and damages to others if you cause an accident in a borrowed or rented car and is secondary to the owner's policy. Non-owner car insurance can also provide proof of insurance if you need to file an SR-22 form.
Non-owner auto insurance meets state minimum liability requirements. Non-owner car insurance costs $380 a year on average, much cheaper than a traditional policy. That's partially because non-owner auto insurance doesn't cover any damage to the car; that falls under the owner's policy, nor does it cover your injuries.
Many top car insurance companies offer non-owner car insurance, but before you buy, you should make sure it’s right for you. Below, we'll explain what non-owner car insurance covers, how to get non-owner car insurance, and why you might need to buy car insurance if you don't own a car.
Key takeaways
- A non-owner car insurance policy costs $380 a year on average, but Auto-Owners has the cheapest average rates at only $86 a year.
- Non-owner car insurance is liability-only coverage for drivers who don't own a car but often drive cars owned by other people.
- A non-owner policy doesn't cover any of your injuries or damage to the car you are driving.
- Can you get car insurance without a car?
- How does non-owner car insurance work?
- What does non-owner car insurance cover?
- Who should get non-owner car insurance?
- How much does non-owner car insurance cost?
- Related Article
- Is non-owner car insurance right for you?
- Frequently asked questions: Non-owner car insurance
- Methodology
Can you get car insurance without a car?
Yes, you can get car insurance even if you don't own a car. Although most types of car insurance are designed to protect the car's owner, non-owner auto insurance protects you regardless of who owns the car you're driving. So, unlike traditional car insurance that follows the car, non-owner insurance follows the driver.
"Non-owner policies are available for individuals who don’t own a car or have regular access to a car but who do drive on occasion," says Rick Kautzer, associate director of personal lines product management at Dairyland Insurance. This type of coverage pays for injuries and damages you cause in an accident when driving a car someone else owns.
You can buy non-owner car insurance from most major companies.
How does non-owner car insurance work?
Non-owner car insurance is secondary liability coverage. That means the owner’s policy applies first, and the non-owner policy will pay out any remaining liability.
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.
Non-owner car insurance is a good fit for you if you frequently rent vehicles 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 are required to have a liability policy to keep their driver’s license or file an SR-22.
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
Non-owner car insurance doesn’t cover the following:
- Damage to the car itself from 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
Who should get non-owner car insurance?
So, do you need non-owner auto insurance? Here’s a quick reference list of who should and shouldn’t buy a non-owner car insurance policy.
| You should buy non-owner car insurance if you 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 due to a violation | You drive a non-owned car for business purposes |
How much does non-owner car insurance cost?
The average rate for a non-owner car insurance policy is $380 a year, based on an analysis of 2022 rates by Insurance.com. That’s well below the average cost of car insurance for a standard policy, which is $511 a year for state minimum coverage.
Non-owner auto insurance costs vary, but this coverage is usually less expensive than traditional car insurance. 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 average non-owner car insurance rates by company.
| Company | Non-owner insurance rate (annual) |
|---|---|
| Auto Owners | $86 |
| Shelter | $97 |
| Vermont | $120 |
| Iowa Farm Bureau | $143 |
| Western National Finance | $143 |
| American National Finance | $145 |
| USAA | $160 |
| Frankenmuth | $165 |
| Auto Club Enterprises | $174 |
| Westfield | $195 |
| Safety | $196 |
| Kemper Corp | $273 |
| Erie | $273 |
| Berkshire Hathaway (Geico) | $296 |
| State Farm | $306 |
| Travelers | $343 |
| Mercury Gen | $355 |
| Automobile Club Mi | $383 |
| Nationwide Corp | $428 |
| CSAA | $444 |
| Arbella | $476 |
| Farmers | $478 |
| Hartford Fire & Cas | $482 |
| American Family | $500 |
| Allstate | $536 |
| Progressive | $593 |
Non-owner car insurance average costs by state
Auto insurance rates vary by state, including those for non-owner car insurance. The table below shows the average cost of a non-owner policy by state.
| State | Average non-owner car insurance cost |
|---|---|
| Alaska | $233 |
| Alabama | $364 |
| Arkansas | $232 |
| Arizona | $386 |
| California | $323 |
| Colorado | $333 |
| Connecticut | $509 |
| Washington D.C. | $470 |
| Delaware | $720 |
| Florida | $759 |
| Georgia | $373 |
| Hawaii | $407 |
| Iowa | $193 |
| Idaho | $190 |
| Illinois | $385 |
| Indiana | $263 |
| Kansas | $280 |
| Kentucky | $522 |
| Louisiana | $366 |
| Massachusetts | $421 |
| Maryland | $355 |
| Maine | $235 |
| Michigan | $574 |
| Minnesota | $257 |
| Missouri | $315 |
| Mississippi | $350 |
| Montana | $298 |
| North Carolina | $926 |
| North Dakota | $220 |
| Nebraska | $241 |
| New Hampshire | $300 |
| New Jersey | $993 |
| New Mexico | $303 |
| Nevada | $414 |
| New York | $578 |
| Ohio | $230 |
| Oklahoma | $218 |
| Oregon | $483 |
| Pennsylvania | $337 |
| Rhode Island | $573 |
| South Carolina | $435 |
| South Dakota | $170 |
| Tennessee | $300 |
| Texas | $408 |
| Utah | $436 |
| Virginia | $336 |
| Vermont | $292 |
| Washington | $389 |
| Wisconsin | $248 |
| West Virginia | $294 |
| Wyoming | $216 |
Is non-owner car insurance right for you?
So, do you need non-owner auto insurance?
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 keeps you from rate hikes typically given to those who have a gap in coverage.
Insurers define “regular access to a car” in various ways, with some viewing it as using a vehicle as little as once per week or four times per month.
In certain cases, you may even opt for a non-owner policy when you own a vehicle. If you must file a certificate, such as an SR-22 or FR-44, and your current carrier does not offer this service, you can take out a supplementary non-owner policy with another company to meet this obligation. Because this secondary policy won't cover your vehicle, the extra costs involved in this strategy are usually low.
Frequently asked questions: Non-owner car insurance
How can you get liability insurance without a car?
By purchasing a non-owner car insurance policy, you are getting protection for yourself should you injure another person or damage someone’s property while driving.
Can you drive someone else's car without insurance?
You don't need to get car insurance if you occasionally drive someone else's car. However, if you drive other people's cars often, getting non-owner car insurance might be a good idea.
Can you rent a car without insurance?
Yes, you can rent a car without having auto insurance. In most cases, rental cars come with liability coverage that will protect you in case something goes wrong while driving the vehicle.
Do you need insurance if you have a license but no car?
You don't need car insurance if you have a license but no car. If you borrow cars occasionally, the owner's insurance should cover you. But if you rent cars or drive someone else's car frequently, getting non-owner car insurance might be a good idea.
Can I drive someone else's car with my insurance?
You don't need your own insurance to drive someone else's car. Their insurance will cover you. It's known as permissive use, which means their insurance will likely cover you in the event of an accident as long as you had their permission to drive. If you have insurance on another car, it will not apply to someone else's car; however, non-owner insurance can be used as secondary coverage.
Methodology
Insurance.com commissioned Quadrant Data Services in 2022 to field quotes for non-owner car insurance for a 40-year-old male driver with a clean record and good credit.
--Penny Gusner contributed to this report
