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What is Non-Owner Car Insurance?
Non-owner car insurance is a type of liability coverage designed for people who drive but don't own a car.
Key Takeaways
- On average, a non-owner car insurance policy costs $325 a year, but State Farm has the cheapest rates at $262 a year.
- Non owner car insurance is designed for people who don’t own a vehicle but regularly borrow or rent other people’s cars.
- Non-owner car insurance can also help if you’re required to file an SR-22 or FR- 44 form in your state but don’t own a car.
- In Tennessee, average cost of non-owner car insurance is $363.
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Can You Get Insurance Without a Car?
Yes, it’s possible to have car insurance without owning a vehicle. This type of policy is called non-owner car insurance. It is designed for people who regularly rent or borrow cars but don’t have their own. Instead of covering damage to the car itself, this policy
provides liability protection, that means it pays for injuries or property damage you cause to others in an accident.
Non-owner auto insurance generally includes the minimum liability coverage required by your state, but you can usually choose higher limits for better protection.
In many cases, non-owner insurance is also used for filing an SR-22 or FR-44 form, which some states require after serious violations like a DUI.
In addition to liability coverage, non-owner policies may include:
- Uninsured/underinsured motorist protection – Covers your medical expenses if you’re hit by a driver with little or no insurance.
- Medical payments (MedPay) or personal injury protection (PIP) – Helps pay your medical bills after a crash, regardless of fault.
However, non-owner policies do not include collision or comprehensive coverage, so they won’t pay for repairs to the car you’re driving or cover losses like theft, fire, or weather damage. They also don’t extend to vehicles owned by people in your household.
One advantage is that most non-owner car insurance quotes come with no deductible, since the policy focuses strictly on liability. For drivers who rent cars often, need proof of continuous coverage, or require an SR-22, this can be one of the best non-owner car insurance options available.
For coverage that protects your own vehicle after an at-fault crash, review our Collision Insurance Guide.
Typically Included
- State-minimum liability coverage
- Uninsured/Underinsured motorist (varies by state)
- MedPay or PIP (where available)
Not Included
- Collision coverage (damage to the car you drive)
- Comprehensive (theft, fire, weather)
- Vehicles owned in your household
When Do You Need Non-Owner Car Insurance?
Non-owner car insurance isn’t necessary for everyone, but it can be a smart choice in several common situations. If you don’t own a vehicle but still drive often, a non-owner liability policy can protect you financially and keep your insurance record active.
Here are the main scenarios where you might need it:
- You Often Borrow Other People’s Cars
When you drive a friend’s or family member’s car, their auto insurance policy usually provides primary coverage. But if accident costs exceed their liability limits, you could be left paying out of pocket.
For example: If you cause $35,000 worth of injuries in a crash, but the car owner’s policy only covers $25,000, your non-owner insurance could step in to cover the extra $10,000. - You Rent Cars Frequently
Rental companies offer liability coverage, but it’s often expensive and limited. Buying a non-owner car insurance policy may be cheaper if you rent often. While it won’t pay for damage to the rental itself, you can pair it with a collision damage waiver from the rental company or secondary protection from a credit card. - You Use Car-Sharing Services
Services like Zipcar, Turo, and Getaround provide only the minimum coverage required by law. If you cause a serious accident, damages could quickly exceed those limits. A non-owner policy acts as a safety net, giving you extra liability protection beyond what the car-sharing company provides. - You Drive a Company Vehicle
Company cars are usually insured for business use, but they may not cover personal errands like stopping at the store or driving your kids home. If your employer’s policy excludes personal use, a non-owner policy ensures you’re still protected outside of work-related driving. - You Need an SR-22 or FR-44 Filing
Drivers with serious violations (such as a DUI or reckless driving conviction) often need an insurer to file an SR-22 or FR-44 form to reinstate their license. If you don’t own a vehicle, a non-owner SR-22 policy is one of the most affordable ways to meet state requirements while maintaining insurance. - You Want to Maintain Continuous Coverage
Insurance companies see gaps in coverage as risky behavior, which can lead to higher premiums later on. Even if you’re between cars, a non-owner policy helps you maintain continuous coverage and avoid penalties from insurers when you shop for your next policy.
When don’t you need non-owner car insurance?
Here are the situations in which you don’t need to buy non-owner car insurance
- If You own a car and already have insurance.
- If you’re borrowing a car from someone you live with, their insurance will usually cover you — but only if you’re listed on their policy. So, before you drive, make sure that they’ve added you to their policy.
- If you drive a company car, but only for business purposes, it should be covered through your employer's commercial auto insurance.
If you drive occasionally, non-owner car insurance may not be cost effective. Infrequent drivers can usually rely on the rental company’s liability coverage or the car owner’s policy instead.
If you own a car, you’ll want a standard policy instead of non-owner coverage. Drivers can find helpful details on rates and coverage differences by comparing options for car insurance in Nashville, TN.
Cost of Non-Owner Car Insurance
Non-owner car insurance is generally more affordable than a standard auto policy since it only provides liability protection and doesn’t include coverage for a personal vehicle.
According to expert source (insurance.com):
The average annual premium for non-owner insurance is around $325, with State Farm often ranking as one of the most affordable options (approximately $262/year) In Tennessee, average cost of non-owner car insurance is $363.
Your actual rate can vary depending on factors such as your age, driving history, location, and how frequently you drive borrowed or rental vehicles.
Additionally, if you’re required to file an SR-22 or FR-44, expect your premiums to be higher.
Non-owner insurance is generally affordable, but if you’re in the market for full policies, you may want to explore the cheapest car insurance in Nashville TN.
Where to Buy Non-Owner Car Insurance
To get non-owner car insurance quote, you will need to call an insurance agent or reach out to the company directly. Insurance company usually don’t provide quotes online. You can also check with smaller, local insurance companies in your area.
Here are some major Insurers Offering Non-Owner Car Insurance
Frequently Asked Questions
Do I need car insurance if I have no car?
Not always. If you rarely drive or only rent, you may not need it. However, if you often
borrow cars or want extra protection when renting, a non-owner policy can give you
liability coverage.
Can I insure a car I don't own?
Generally, no. Insurance companies require the main policyholder to have “insurable
interest,” which means you must own or financially benefit from the vehicle. Without
that, insurers assume you wouldn’t directly suffer a loss if the car was damaged, so they
won’t issue a policy.
Does non-owner car insurance cover rental cars?
In many cases, yes. Non-owner car insurance provides liability coverage when renting a
vehicle, which can save money compared to rental company fees. However, it won’t pay
for damage to the rental car itself.
Do I need non-owner insurance if I am borrowing a car from a family member?
If you live with the family member, you should be added to their policy instead of buying
non-owner insurance. But if you live separately and borrow their car often, a non-owner
policy can provide extra liability protection.
Can I rent a car with non-owners insurance?
Yes, and it can actually be a cost-saving move. Rental companies usually charge extra
for liability coverage, but if you already have non-owner insurance, you don’t need to
buy it again. You may still need insurance to cover damage to the rental vehicle itself.
My company issues me a company car. Do I need non-owner insurance?
Usually, no. Company vehicles are typically covered under your employer’s commercial
auto insurance policy. However, if you use the car for personal errands or want extra
peace of mind, you might consider asking about a “drive other car” endorsement for
added protection.
While driving a friend’s car, I got into an accident and totaled it. Does non-owner
insurance cover the damage to his car?
No, non-owner insurance only provides liability coverage for injuries or property damage
you cause to others. It doesn’t cover damage to the car you were driving. In this case,
your friend’s insurance would need to handle the repair or replacement costs if they
have the right coverage.
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