Insuring non-owners of cars means offering coverage to drivers who don't own cars, but rent them, use car sharing services, or borrow cars. Those with valid driver's licenses but no vehicles are eligible for non-owner insurance. When a driver lives in a household where a vehicle is accessible, insurers may refuse to issue a non-owner policy.
Non-Owner Car Insurance: Things to Know
- The minimum coverage required by the state comes with non-owner policies. There are also options for additional coverage.
- Non-owner policies are offered by most major insurers.
- The cost of non-owner auto insurance ranges from $200 to $500 a year.
- Consider purchasing non-owner car insurance if you don't have your own vehicle but plan to borrow or rent one frequently.
How Does Non-Owner Car Insurance Work?
Individuals who do not own a car can still obtain liability insurance through non-owner policies. You are covered by this type of insurance when you are at fault for damage to another person's car or injury to someone else, but it does not cover damage to your vehicle.
Several optional coverage levels are normally available to drivers with non-owner policies, such as uninsured/underinsured motorist and personal injury protection (PIP), which will cover some or all of your accident-related expenses. All states that require this type of insurance automatically include them in their insurance requirements.
The policyholder doesn't have to own a vehicle to obtain non-owner coverage, so collision and comprehensive coverage don't apply.
What Does Non-Owner Car Insurance Cover?
- Other driver injuries caused by your negligence
- property damage that does not originate from the vehicle you are driving
- Uninsured or underinsured motorist accidents
- that result in medical expenses
How Much Does Non-Owner Car Insurance Cost?
The cost of Auto insurance for non car owners ranges between $200 and $500. Non-owners often drive fewer miles, so they tend to file fewer claims and pay less for coverage as a result.
It depends on your driving history, your location, and your frequency of driving how much your policy will cost. You don't have a deductible for non-owner policies.
When Not to Consider Non-Owner Car Insurance
There is someone in your household who owns a car.
Unless you already own a car or live in the same house as someone who does, you shouldn't consider non-owner car insurance. There will be no non-owner coverage in either case, though there may be some exceptions for roommates who are not related.
Your driving is rare or non-existent.
If you use rented or borrowed vehicles frequently, non-owner car insurance can be a great choice, but if you only drive a handful of times per year, it might not be worth it. You should be covered by your rental car or vehicle insurance policy in this case.