Cheap Non-Owner Auto Insurance (2024)

Can you get auto insurance without a car? The answer is yes, and that’s where non-owner auto insurance comes in. Non-owner auto insurance covers drivers who don’t own a car. For example, you might need a non-owner policy if you regularly borrow or rent a vehicle to get around. 

You don’t have to own a car to buy auto insurance — you just have to meet your state’s minimum limits if you plan on driving someone else’s car. Non-owner auto insurance includes minimum liability, uninsured motorist, and medical payments coverage.

Still trying to decide if you need auto insurance? This guide covers what auto insurance without a car covers, how coverage works, and compares non-owner auto insurance quotes from multiple companies. Keep reading to find the right policy.

Non-Owner Auto Insurance Coverages

If you’re involved in an accident while driving someone else’s vehicle, non-owner car insurance covers you just like a personal policy would. The main difference between non-owner and personal policies is that you can’t buy full coverage auto insurance. 

The map below shows the average monthly cost of non-owner liability auto insurance across the U.S.

Since non-owner policies don’t list a specific vehicle, you can only purchase liability insurance. Non-owner liability insurance provides two types of coverage:

• Liability coverage: Liability coverage pays for injuries and property damage you cause in an at-fault accident and legal costs if the injured parties sue you.
• Rental car liability coverage: Liability rental auto insurance pays for injuries and damages you cause while driving a rental. Some policies may also cover damage to the rental car.

Drivers can also buy additional coverage:

• Uninsured motorist coverage (UM): UM coverage pays for your injuries and property damage in a hit-and-run accident or collision with an uninsured driver.
• MedPay coverage: This coverage pays for medical bills for you and your passengers, no matter who is at fault for the accident.

Non-owner car insurance will meet state minimum auto insurance requirements for liability coverage. You can choose higher liability limits or add UM and MedPay coverage, but there’s still much that non-owner insurance doesn’t cover.

What Non-Owner Auto Insurance Doesn’t Cover

Non-owner car insurance isn’t full coverage insurance. It doesn’t provide collision or comprehensive coverage since no owned vehicle is on the policy. 

Non-owner liability auto insurance is designed to cover your basic needs as a driver and won’t pay for the following:

• Vehicle damage: The vehicle owner will file a claim with their insurance company or the at-fault driver’s insurance.
• Other drivers: You can’t list anyone else as the driver on a non-owner policy.
• Personal items: If anything you own gets damaged or stolen from the vehicle, you must file a claim with your homeowners or renters insurance.
• Personal injuries: You must buy medical payments coverage for the non-owner policy to cover your and your passengers’ medical costs.

Another common exclusion on non-owner car insurance is business driving. For example, you can’t use this policy if you’re a delivery or rideshare driver. Read more about delivery driver auto insurance.

If you drive a work or company car, ensure the business’s policy covers you before you get behind the wheel. In most cases, the company that owns the vehicle you’re driving will cover you while you work.

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How Non-Owner Auto Insurance Works

Unlike traditional car insurance, non-owner policies follow the driver, not the vehicle, meaning the policy only covers your personal liability and not any damage to the car itself.

Still, you can use your policy to supplement the vehicle owner’s insurance. Their insurance policy would kick in first if you cause an at-fault accident while driving a friend’s car to work, but you could file a claim with your non-owner insurance if the damages exceeded the limits of the owner’s policy. 

So, let’s say your friend’s liability insurance covers $30,000 in damages, but you caused $50,000. Your non-owner liability policy would cover the remaining $20,000 or up to the policy’s limits. You would be responsible for any costs exceeding that limit, so we recommend carrying higher than the minimum required.

Non-owner insurance doesn’t have an auto insurance deductible, so you won’t have to pay any up-front costs when filing a claim. However, your insurance rates will rise after an accident or traffic violation. 

Who Needs Non-Owner Auto Insurance

Read on if you’re not sure whether you need non-owner auto insurance. If you meet the following conditions, you should consider non-owner auto insurance coverage:

You Frequently Rent or Borrow a Car

You’re liable for any accident you cause while driving someone else’s car. You’re also responsible for accidents in a rental car. Getting rental auto insurance might be something to consider when driving a rental car. Having non-owner insurance means you have coverage for at-fault damages and injuries up to the limits of your policy with any vehicle you’re driving.

If you rent a car, you can supplement your non-owner policy with the additional coverage offered at the counter. Often, this coverage includes collision waivers and personal item protection, two types of auto insurance coverage not available with non-owner policies.

You Use Car-Sharing or Peer-to-Peer Services

Car-sharing companies typically have a fleet of vehicles to choose from, while peer-to-peer (P2P) services allow you to borrow cars from other drivers. Some of these companies offer auto insurance packages, but these usually only cover damage to the vehicle and won’t meet state requirements. 

Non-owner coverage will provide the liability insurance you need to rent with a car-sharing company. You may be able to buy basic liability from the company for an additional fee, but non-owner auto insurance provides the same coverage, usually at much cheaper rates.

You’re Reinstating a Revoked License

You must provide proof of insurance to reinstate a driver’s license, even if you don’t own a car or it got totaled in an accident. Most courts require that you file SR-22 auto insurance to prove you have adequate coverage, and non-owner SR-22 insurance policies will satisfy this legal obligation.

You’re Shopping for a New Car

Suspending your auto policy can cause your monthly rates to skyrocket, so don’t cancel your coverage after selling your car if you plan on buying a new one. Instead, non-owner auto insurance can fill that gap in your insurance history while you’re between cars. You can update the non-owner policy later at much lower rates than if you had suspended coverage.

Who Doesn’t Need Non-Owner Auto Insurance

How often you drive and whose vehicle you borrow will determine if you need non-owner car insurance coverage. You can often get lower non-owner car insurance rates if an insured driver can add you to their policy.

Keep reading for more examples of who doesn’t need non-owner car insurance coverage:

You Own a Car

You don’t need non-owner auto insurance if you own a personal vehicle — your personal policy will cover you when you rent or drive someone else’s car. You can also list other drivers on your personal policy if you plan to lend your vehicle to friends and family.

You Borrow a Roommate’s or Spouse’s Car

Most insurance companies won’t sell non-owner policies to drivers who are married or live with an insured driver who owns the car they borrow. Instead, your spouse or roommate would list you as a named driver on their policy. Their coverage would extend to you when you drive the insured vehicle or rent a car. (For more information, read about the best auto insurance companies for married couples.)

You Drive a Work Vehicle

A company typically insures any work vehicles. You might not need non-owner insurance when covered by a business or commercial auto insurance policy, but coverage can vary between policies and employers. Confirm with your company to ensure you have proper coverage before buying non-owner liability insurance.

You Rarely Borrow Someone’s Car

Working from home or moving to a walkable city with convenient public transportation might change your commuting habits and lower your insurance rates. You won’t need non-owner car insurance if you don’t own a car and rarely drive.

However, if you plan on borrowing or buying a car soon, you may want to find coverage to avoid higher rates and meet non-owner auto insurance coverage requirements.

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Non-Owner Auto Insurance Cost

Is car insurance cheaper if you don’t own a car? The short answer is yes — non-owner auto insurance quotes are less expensive because policies don’t include full coverage. On average, you’ll pay $36 monthly for non-owner liability auto insurance.

Be aware that local liability requirements will impact how much you pay for non-owner car insurance coverage. Higher limits mean higher rates, so research your state auto insurance laws to determine how much coverage you need before you shop for non-owner insurance quotes. 

Non-Owner Auto Insurance Cost by Company

Most of the popular insurance companies sell non-owner auto insurance coverage. Take a look at the table below to see annual rates for auto insurance without a car from a list of companies offering non-owner liability insurance:

These rates give you an idea of what non-owner car insurance costs by company. However, your age, driving history, and how much coverage you want will ultimately determine the cheapest non-owner car insurance companies.

How to Buy a Cheap Non-Owner Car Insurance Policy

So, can you get car insurance without a car? You can buy auto insurance without a car by shopping for non-owner insurance quotes online. Non-owner car insurance will provide the minimum liability coverage you need to legally rent a car or drive someone else’s. You should always compare quotes from the best companies to find cheap auto insurance without a car.

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Searching for the best auto insurance companies for drivers who don’t own a car insurance rates will vary depending on a few factors.

This coverage is usually less expensive than a typical full-coverage policy, as insurers view those who don’t own a car as less risky because they don’t have regular access to it. Finding the best non-owner car insurance, while keeping these things in mind, will help to find which fits your needs.

Other factors that impact your non-owner car insurance costs include:

• Age
• Gender
• Coverage amount
• Driving record
• Location
• Mileage

High-risk auto insurance might be required if your insurance company deems you as high-risk. Your non-owner policy will likely cost you more than it would for someone with a clean record.

Unfortunately, some companies refuse to insure high-risk drivers for this specific policy type if you don’t have an existing policy with them, so research which companies offer cheap auto insurance for drivers with a bad driving record.

The companies listed above all offer non-owner policies. USAA, Geico, and State Farm auto insurance have the best non-owner liability car insurance rates, but you may find a better price with a different insurer. Comparing Geico vs. State Farm auto insurance will give you more information.

More About Finding the Right Non-Owner Auto Insurance Policy for You

Finding the best and cheapest auto insurance companies for drivers who don’t own a car depends on the various factors affecting rates, such as age, location, vehicle type, gender, and credit.

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Non-owner car insurance is certainly cheaper than a regular policy with full coverage auto insurance, but you must remember that it only covers other people, leaving you to pay out of pocket for your own expenses after an accident.

Progressive, Geico, and State Farm all offer unique policies that can fit specific needs when searching for non-owner car insurance. You can enter your ZIP code into our free quote comparison tool below to get insurance quotes for a car you don’t own.

 

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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