What is non-owner car insurance, and who needs it?

Non-owner auto insurance is liability-only car insurance for a driver who doesn’t own a vehicle but drives other people’s vehicles often. It provides additional liability insurance should you get into an accident while driving someone else's car or a rental.

Leslie Kasperowicz is an insurance expert with four years of direct agency experience and over a decade of creating educational content to help insurance shoppers make confident, informed decisions.

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

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Non-owner car insurance is liability insurance for people who don’t own a car but drive cars owned by others and need proof of insurance. A non-owner policy meets state minimum liability requirements and covers injuries and damages to others if you cause an accident in a car you don't own, secondary to the owner's policy.

Non-owner coverage allows you to get car insurance without owning a car, and it actually costs a lot less than typical car insurance. The average cost of non-owner car insurance is $325 a year.

Non-owner car insurance can be a cost-effective way to maintain liability coverage without owning a vehicle. It helps ensure you're protected against potential financial losses from accidents and can be a practical option for those who want to maintain continuous coverage.

Key takeaways

What is non-owner car insurance?

Non-owner car insurance is designed for people who drive but don't own a vehicle. This coverage is useful for people who frequently rent cars, borrow cars from friends or family or use car-sharing services. It protects you if you’re in an at-fault accident in a car you don’t own and someone else gets hurt.

Non-owner car insurance includes:

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 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.

Non-owner auto insurance is a good fit if you frequently rent 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 must have a liability policy to keep their driver’s license or file an SR-22.

How much is non-owner car insurance?

Non-owner car insurance is generally more affordable than traditional car insurance. This is primarily because it provides less comprehensive coverage, focusing mainly on liability rather than covering physical damage to a vehicle.

The average rate for a non-owner car insurance policy is $325 a year, based on an analysis of rates by Insurance.com. That’s well below the average cost of car insurance for a standard policy.

Insurers view those who don’t own cars as less risky because they drive less frequently. Factors influencing cost include:

You can find the cheapest non-owner rates by shopping around. Here’s a look at the cheapest companies for non-owner car insurance.

Data updated in 2024 Read our full methodology

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:

And in some states, where required by law, it also covers:

What isn’t covered by non-owner car insurance?

Non-owner’s car insurance is strictly liability insurance, which covers damage you cause to other people’s vehicles, property and medical expenses. 

You should be aware, however, that there are things it will not cover. This includes:

Who should get non-owner car insurance?

While not everyone who doesn’t own a car needs non-owner car insurance, it fills the gap for people who drive occasionally but don’t have their own vehicle.

Here’s a quick reference list of who should and shouldn’t buy a non-owner car insurance policy.

How much non-owner car insurance 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.

Data updated in 2024 Read our full methodology

Related Article

Is non-owner car insurance right for you?

Determining whether non-owner car insurance is right for you depends on your driving habits and insurance needs. If you frequently drive a car you don't own, you should get non-owner car insurance. This ensures that you’re financially protected against potential lawsuits and medical expenses that can arise from an accident, even if the vehicle isn't yours.

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 keep you from rate hikes typically given to those with a coverage gap.

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.

Methodology

Insurance.com commissioned Quadrant Data Services to field quotes for non-owner car insurance for a 40-year-old male driver with a clean record and good credit. 

– Mel Duvall contributed to this story.

Auto insurance FAQs

Can you get car insurance without a car?

Yes, non-owner car insurance provides car insurance coverage if you don’t own a car.

It provides essential protection for those who drive occasionally or temporarily use vehicles owned by others. By offering liability coverage, non-owner car insurance ensures you’re financially protected in case of an accident, even when you don’t own a car.

How can I get auto insurance without a car?

Most large insurance companies offer non-owner car insurance policies specifically tailored to people who don’t own a car, so obtaining a policy is relatively simple. However, not all offer quotes for non-driver insurance online, so you may need to contact the companies directly.

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