What Is Non-Owner Car Insurance?

A non-owner car insurance policy protects drivers who frequently drive but don't own the vehicle they use. Sometimes called non owners insurance or non-owner car insurance, this coverage includes bodily injury liability insurance and property damage liability insurance to cover property damage and injuries a driver may be liable for after an accident. However, non owner car insurance won't provide coverage for damage to the vehicle you were driving or your own injuries after an accident.

An independent insurance agent can help you get set up with all the auto insurance you need, including a non-owner policy. They'll be able to recommend the right coverage for your unique situation. But first, we'll answer the question, "What is non owner car insurance?" thoroughly and explain when and why certain drivers might need this coverage.

What Does Non-Owner Car Insurance Cover?

Non owner auto insurance or non-owned vehicle insurance provides important coverage for drivers who don't own cars of their own but regularly drive. It provides property damage and bodily injury liability coverage for the named insured (you) if you are in an at-fault accident. 

It can also cover you for injuries caused by an uninsured or underinsured driver if you select this coverage. You can expect to always find the following types of coverage in a non-owner car insurance policy:

• Bodily injury liability coverage: This pays for medical expenses you are liable for in the event of an at-fault accident.
• Property damage liability coverage: If you're in an at-fault accident, this pays to repair or replace the other driver's vehicle or property.

Non-owner car insurance might also include these optional coverages:

• Uninsured motorist coverage: This provides compensation if you are injured in an accident by another driver who is uninsured or underinsured, or if it's a hit-and-run accident.
• Medical payments: This pays for your injuries and the injuries of passengers in your vehicle, no matter who's at fault in an accident.
• Personal injury protection: This includes medical payments coverage but provides the added benefit of replacing lost wages and other possible costs.

You won't typically find collision coverage or comprehensive coverage in a non-owner car insurance policy. You can ask your independent insurance agent to help you build the right kind of non-owner car insurance policy for your needs.

Do You Need a Non-Owner Car Insurance Policy?

There are a few different circumstances that might require someone to obtain a non-car owner insurance policy. They all relate to needing coverage if you drive but don't own the vehicle you use. For example, an individual might need non-owner car insurance if they:

• Borrow cars often: Someone who borrows cars often, such as from different friends or family members, still must be insured. Since these vehicles don't belong to them, they can use coverage from a non-owner car insurance policy.
• Use a car-sharing service: Someone who uses a car-sharing service doesn't own the vehicle they drive, but still must be insured. They can use a non-owner car insurance policy to meet these coverage needs.
• Rent cars often: Someone who rents cars often, such as on vacations or for long business trips, still must be insured. A non-owner car insurance policy can provide the coverage necessary to protect these rented vehicles for a lower price than the coverage offered by the rental company. 
• Drive a company vehicle for both work and personal use: Someone who drives a company vehicle for business purposes, like deliveries, for personal use, or both, must be insured. The coverage provided by a non-owner car insurance policy can meet their needs in each of these scenarios. 
• Want to maintain coverage to avoid a gap in insurance: Someone who is between owning vehicles but wants to maintain necessary coverage while they continue to drive can satisfy their insurance needs with non-owner car insurance. Non-owner car insurance can continue auto insurance coverage even if you're between cars.

An independent insurance agent can also advise you on whether a non-owner car insurance policy is the right choice.

Who Shouldn't Buy Non-Owner Car Insurance?

There are certain unique scenarios in which having non-owner car insurance or non driver insurance isn't the best choice for an individual. These can include drivers who frequently borrow cars from someone in their household. 

In such a case, the driver should be listed as an additional insured on the car insurance policy of the household member from whom they borrow the car. In certain cases, a car insurance company can cancel a policy if the policyholder doesn't list every member of the household who is of legal driving age on the policy. 

Drivers who frequently borrow a car from someone they don't live with might also not want a non-owner car insurance policy. Similar to the above scenario, the driver should be listed on this person's auto insurance policy since they regularly use the vehicle, regardless of whether they live together. If you have a friend or family member you regularly borrow a car from but don't live with, make sure to ask about being listed or named as an additional insured on their auto insurance policy so they don't risk losing their coverage.

Finally, if you don't own a vehicle and don't drive frequently, you may not need non-owner car insurance. If you only borrow a vehicle from someone very occasionally or rent a car on an annual basis, for example, a non-owner car insurance policy's cost may not be worth it for you. In these cases, you might choose to purchase coverage from the rental company or count on the auto insurance policy of the person you borrow the vehicle from.

Where Can You Shop for Non-Owner Car Insurance?

Not all car insurance companies offer non driver car insurance or a non owners insurance policy. However, there are a few major carriers that do, including Nationwide, Liberty Mutual, and USAA. Coverage availability varies by state, however, so be sure to work with your local independent insurance agent to secure a policy.

If you already have an insurance policy from a major carrier, such as home insurance or renters insurance, you may be able to save a lot of money by bundling your coverage. Check with your existing insurance company to see if they offer non-owner car insurance. If they do, ask them if they offer bundling car insurance discounts if you buy a second type of insurance through them.

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How Much Does Non-Owner Car Insurance Cost?

Non-owner car insurance policies are generally less expensive than traditional car insurance, but sometimes, the driver's state may require an SR-22 form or an FR-44 form, which needs to be added to the policy. There is generally a small fee to obtain one of these forms, and having one of these forms can increase your auto insurance rates while you have it. 

However, non-owner car insurance often costs less than you'd pay for the same amount of liability coverage under an auto insurance policy for your own vehicle. Many factors influence the cost of non-owner car insurance, though, including your location, driving history, coverage selected, etc. An independent insurance agent can help you find the most affordable non-owner car insurance in your area. 

Where to Find Non-Owners Car Insurance

The best way to shop for non-owner car insurance with affordable rates is by contacting a local independent insurance agent. These agents have access to a number of car insurance companies and can shop around for multiple quotes to deliver an insurance package that meets your individual needs and budget. Find a local independent insurance agent today to get a non-owners car insurance quote.

FAQs About Non-Owner Car Insurance