All about Non Owner Car Insurance: Detailed Guide

By Randy Luton | Last Updated: 11/30/2022

Key Insights:

  • Non-owner car insurance has become a necessity for everyone with the rising trend of rental cars.
  • People who are driving rental cars should have non-owner insurance.
  • You can buy non-owner car insurance from any top insurer in your city.
  • You can not buy non-owner car insurance if anyone in your household owns a car.

Do You Know traffic fatality rate has risen by 12% in 2021? A higher fatality rate means the number of car accidents that occurred also increased in 2021. Now with this rising rate of accidents; the chances of getting into a car accident and damage to your property is higher than ever. Even if you think you are a good driver you can get hit by another car.

Now if you have a valid driving license but don’t have a car yet then also you need car insurance. Why? Because you might have to drive someone else’s car at some point in time. It can be a medical emergency, very important work, or driving your kids to school in a neighbor’s car when they missed the bus.

This is where non-owners car insurance comes into the picture. And this blog is written with the goal to help you understand everything about this insurance type.

What is non-owner car insurance?

Some of you must be thinking what exactly is this insurance and why do I need it? So non owners’ car insurance is for every driver who has a valid driving license but no registered vehicle.

This is liability coverage for every driver who knows how to drive and occasionally drives someone else’s vehicle. If you get into an accident while driving someone else’s car then you don’t have to spend your savings on property damage or medical bills. 

What does non-owner car insurance cover?

Non-owner car insurance generally covers minimum required liability coverage as per your state’s laws. You can increase limits from minimum to higher to get better protection. Also; there are some companies that provide below coverage along with minimum liability on a non-owner policy:

  1. Uninsured/Underinsured Motorist Protection:
    This is necessary in case you get into an accident with a driver who can not pay for property damage or medical bills. Your insurance company will come into the picture and handle all the bills for you.
  2. Medical Payments or Personal Injury Protection:
    In this coverage, your insurance company will pay for all the medical bills no matter who was at fault in the accident.
  3. A Legal Defense:
    In case another driver, passenger, or pedestrian sues you for an accident, your insurance company will cover the legal fees.

What’s not covered by non-owner car insurance?

There is a lot of confusion around what is not covered in a non-owners insurance policy. And that is why we have decided to address this problem in a dedicated section; below are some coverages that you will not get in your non-owner policy:

  • Damage To The Car You’re Driving
    In simple terms; you will not get a collision or comprehensive insurance in your policy. As a result; you do not get protection from fires, theft, hail, riots, vandalism, floods, collisions with animals, and even if objects are falling from a tree, sky, or house. Also, you will not get protection if someone hits the car you are driving.
  • Injuries That You Suffer In A Car Accident
    This is interesting; as per minimum liability insurance, you will not get coverage for your own injuries in a non-owner policy. You can add medical payments coverage to your policy to get coverage for your injuries.
  • Driving For Work Purpose
    We spend most of our life working or traveling for work. This increases our chances of getting into an accident while driving for work purposes. If you get into an accident while driving for work then your personal non-owner coverage can not help you in that. You will need commercial insurance for that.
  • Personal Belongings
    You will not get coverage for theft or damage caused to the personal things in that car you were driving like phone, laptop, luggage, etc. You can have those things covered under homeowners’ or renters’ insurance.

How much is non owner car insurance?

And now the most important question is how much do you have to pay for a non-owners car insurance policy? Now the answer to this question depends on a lot of different factors because every company has its own method of calculating cost of car insurance policies.

On average the cost of a non-owners car insurance policy is between $200 and $500. But it can be higher or lower depending on your insurance company.

Wondering which factors affect the nonowner’s car insurance policy? Below are some of the most important factors that affect every driver and insurance policy in our country:

  1. Your Credit Score:
    Yes, your credit score affects the car insurance rates. Credit score of a driver shows the credibility of the driver. This is why every car insurance company checks the credit score of driver and considers it directly or indirectly as a strong factor in the car insurance rate calculation.
  2. Your Driving Record:
    A clean driving record means you are a responsible and safe driver as a result the company will provide you with lower insurance rates. These drivers are considered safe drivers and the chances of getting into an accident as lower than others. This is why they get lower insurance rates.
  3. The Area Where You Live Or Drive Your Car:
    Location plays a huge role in deciding the car insurance rates for any driver. The company will closely check the area where you live and other areas where you drive. This will help them to understand the chances of you getting into an accident. 
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What is non-owned car insurance for businesses?

If you are a business owner and your employees sometimes use their car to deliver some products or go for meetings then you need non-owners car insurance. This will provide extended liability coverage for your employees’ commercial auto insurance policy.

But make sure the employees are using their personal vehicle for office work occasionally, not every day. 

How to get non owner car insurance?

Now that you have all the details about non-owners car insurance; it’s time to understand how you can buy this policy. Following are the steps you need to follow to buy a non-owners car insurance policy:

  1. Understand The Clear Requirements Of Your State
    In some states no-owners car insurance policy is mandatory for rental cars while other states don’t even offer it. So it is important to get a clear idea about the requirements in your state.
  2. Decide If You Really Need It
    We have already explained how to decide if you need a non owners car insurance policy or not. Compare the checklist and decide for yourself.
  3. Contact Your Local Car Insurance Companies
    We have already made a list of top companies in every state. But you will have to check the top companies in your area for better policy rates.
  4. Buy The Policy
    After comparing the quotes from different companies, decide which one is the best for you and buy the policy.

Who needs non-owner car insurance?

We are sure you must be wondering; I don’t drive other people’s vehicles that much, it is only once in a while. There are other scenarios where non-owner car insurance can help you:

  • You Rely on Car-sharing Companies
    If you are a regular customer of car-sharing companies like Zipcar or Getaround then you will need a non-owners policy to protect yourself.
  • You Use Rental Cars Often
    When you rent cars regularly, you will have to either buy liability coverage from the renting company or buy a non-owners car insurance policy. 
  • Avoid Coverage Gap In Your Car Insurance Policy
    If you have sold your car and now you are planning to take a gap to buy your next dream car then non-owner insurance can save a lot of your money. A gap in your regular car insurance policy can make you a highly risky driver. This will increase the value of your insurance policy.
  • If You Are Required To File An SR-22
    Drivers with too many DUI convictions, license suspension, or at-fault accidents need to prove their car insurance policy. Non-owner car insurance is the best way to prove your auto insurance in a case of SR-22 or FR-44.

Who doesn’t need non-owner car insurance?

We can understand your confusion around certain insurance types and that is why we decided to add another layer of clarity. Below are some reasons for not buying a non-owners car insurance policy:

  • You Have A Car:
    The most common reason is; that you already own a car that is registered by your name and you drive it rarely or daily.
  • You Have A Car In Your Household:
    If any member of your family living in your house owns a car then you can not have a non-owner car insurance policy. You will have to get your details registered under their car insurance policy.
  • You borrow your friend’s or family member’s car occasionally:
    Borrowing someone else’s car occasionally is okay but you have to make sure that you are not using other cars almost every day. If you are; then it is better to get yourself insured.
  • If you don’t drive at all:
    If you don’t drive any car then there is no need for a non-owners car insurance policy. You can simply get yourself medical insurance in case someone hits you other than that you are good to go.

Who offers non owner car insurance?

Another important piece of information that you need is which car insurance companies sell non-owner insurance policies? Not many companies provide this insurance type and each one has its own terms and conditions.

To help make an informed decision we have listed out some top non-owner car insurance companies:

  1. State Farm
  2. Geico
  3. Travelers
  4. Liberty Mutual
  5. Progressive
  6. Nationwide
  7. USAA
  8. Farmers Insurance

What Companies offer non owner car insurance in every state?

Wondering how much you will have to pay for your non-owner car insurance in your area? The cost for any insurance policy depends on several factors like road conditions, theft rate, accident rates, etc.

You might be thinking where can you get cheapest non owner car insurance in every state? The data given below will surely help you out in this regards and also help you to understand the average cost and how it changes from one state to another :

StateAverage Cost of Non-Owner InsuranceCheapest CompanyAverage Cost of Cheapest Company
Alaska$423State Farm$355
Alabama$586Travelers$188
Arkansas$409GEICO$177
Arizona$652State Farm$411
California$474Farmers$312
Colorado$728GEICO$209
Connecticut$751State Farm$457
Washington D.C.$480GEICO$185
Delaware$895GEICO$423
Florida$1,012Travelers$410
Georgia$830GEICO$302
Hawaii$422State Farm$271
Iowa$269State Farm$179
Idaho$274GEICO$211
Illinois$505Travelers$364
Indiana$326Nationwide$221
Kansas$378Travelers$272
Kentucky$867GEICO$204
Louisiana$929Travelers$637
Massachusetts$548State Farm$357
Maryland$899GEICO$527
Maine$201Progressive$216
Michigan$2,212Nationwide$1,989
Minnesota$640GEICO$445
Missouri$377State Farm$317
Mississippi$524Travelers$306
Montana$496State Farm$317
North Carolina$427Nationwide$310
North Dakota$277State Farm$162
Nebraska$341Farmers$108
New Hampshire$358Travelers$108
New Jersey$880Nationwide$323
New Mexico$534GEICO$264
Nevada$866Travelers$623
New York$2,097GEICO$700
Ohio$354Farmers$210
Oklahoma$458GEICO$209
Oregon$538State Farm$366
Pennsylvania$803GEICO$198
Rhode Island$1,378Travelers$644
South Carolina$520Farmers$209
South Dakota$289State Farm$242
Tennessee$491GEICO$200
Texas$584State Farm$376
Utah$673Travelers$276
Virginia$371GEICO$130
Vermont$467Nationwide$434
Washington$688GEICO$336
Wisconsin$278Travelers$153
West Virginia$376GEICO$143
Wyoming$275Farmers$282

FAQs about Non-Owner Car Insurance

  • Can I get a non-owners car insurance policy if I have a vehicle?

    No, you have to buy a car insurance policy if you have a vehicle.

  • Does non-owner car insurance cover rental cars?

    It will not cover the physical damage caused to the rental car. But it will cover the property damage and medical bills in case of an accident.

  • Can I insure myself from a car that I don’t own?

    Yes, you can not buy a policy for the car you don’t own but you can get insurance for yourself under non-owners insurance.

  • Is it possible to cancel my non-owner car insurance?

    Yes, you can cancel your non-owner car insurance whenever you want. All you have to do is inform your insurance company.

  • How can I decide if I need non-owners insurance or not?

    If you are driving another person’s car occasionally then you will have to buy non-owner car insurance. 

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Conclusion

Now we are sure you are clear about non-owners insurance and if you need it or not. There are a lot of companies that provide Non-owners insurance policies. If you are confused about which company to choose as per your requirements and budget then our team is here for your support. Get in touch with us today!

Source:

  • Read an article on the NHTSA website about the car accident fatality rate in 2021 on 29 May 2022.
  • Referred to the website of the Center for disease control and prevention; to understand the number of accidents that occur while people were commuting to work on 29 May 2022. 
  • Referred to an article by driving test.org to check the number of licensed drivers in our country on 29 May 2022. 

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.