Non-owner car insurance: How to get car insurance if you don’t own a car

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When you drive someone else’s car, the owner’s auto insurance policy should cover you if you use the car with the owner’s permission. However, if you get into an accident and the damages exceed the amount specified by the owner’s liability coverage, you may be on the hook for a significant amount.

When this happens, the injured party could come after your assets — including your savings and home — to get the money you owe. Non-owner car insurance protects your financial health by increasing the amount of your total auto insurance coverage.

“It is designed for you to have an additional amount of coverage for liability purposes when driving a vehicle that you do not own. This, however, does not give a person a safety net to drive your friend’s car that is uninsured, as there should be a base policy in place for the vehicle,” says Zack Pope, agency manager at David Pope Insurance in Missouri.

Non-owner insurance can also be helpful if you will be without a car for a period — for example, if you’re spending a year abroad — and want to maintain continuous coverage to prevent higher rates in the future. Insurers typically charge higher rates if your insurance coverage has lapsed recently.

Our recommendation

Non-owner insurance coverage can come in handy if you frequently drive a friend or family member’s vehicle, but it’s not necessary for everyone. 

When you should get non‑owner car insurance

Non-owner car insurance makes sense if: 

• You don’t own a car
• You drive cars owned by others or rent them
• You’re required to have liability insurance to keep your license
• You’re between cars and don’t want a lapse in coverage

Times you can skip non-owner insurance

You should forgo a non-owner policy if: 

• You own a car
• You no longer own a car, have surrendered your driver’s license and will not drive
• You’re covered by a parent or guardian’s policy

What is non-owner car insurance and how does it work? 

Non-owner car insurance is liability-only coverage for drivers who don’t own a car. If you’re driving a car that someone else owns and cause an accident, it will pay for injuries and damage to others and their property in excess of the coverage on the car being driven.

Non-owner car insurance is typically secondary coverage, which means it is used if the car owner’s insurance falls short in paying for the repair and medical bills in an accident that’s your fault. The insurance policy on the car you’re borrowing will be used first, and then your non-owner policy kicks in if the damages exceed the car owner’s liability limits.

For example, let’s say your non-owner policy has $50,000 in property damage liability, and the owner of the car you’re driving has $25,000 in property damage liability. You borrow the car and cause an accident with $40,000 in property damage. Your friend’s policy would pay out $25,000, and your non-owner policy would cover the extra $15,000 because your limits are excess and you have coverage.

However, non-owner car insurance won’t cover damage to the car you’re driving or cover your injuries if you’re at fault for an accident.

What does non-owner car insurance cover?

A non-owner insurance policy primarily covers:

• Bodily injury
• Property damage liability coverage

Some car insurance companies also offer:

• Medical payments 
• Uninsured/underinsured motorist bodily injury coverage

Your non-owner auto insurance may also cover you when you rent a vehicle and get into an accident. However, not all non-owner policies extend coverage to rental cars, so check the policy’s fine print before buying your policy.

If you borrow someone’s car and cause injury or damage, the vehicle owner’s car insurance pays out first. If it’s not enough to cover damages, your non-owner policy would then pay out as secondary coverage — provided your policy’s liability limit is high enough.

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What isn’t covered by non-owner insurance?

Non-owner insurance solely provides liability coverage. If you’re in an accident, it only covers injuries to the driver or passengers of the other vehicle or damage to their car. Non-owner policies don’t include any coverage for the vehicle you drive, so you won’t have collision, comprehensive, roadside assistance, or rental reimbursement coverage since no vehicle is attached to the policy. Typically, non-owner car insurance policies don’t have deductibles. 

Not sure what non-owner car insurance actually covers? Here are a few everyday situations and whether this type of policy would apply:

Who should get non-owner car insurance?

You should buy non-owner car insurance if you don’t own a car and:

• You rent vehicles
• You drive someone else’s car or a company car
• You need to keep continuous coverage while you don’t own a vehicle but plan to buy one soon
• You are required by law to buy a liability policy to keep your driver’s license or need to file an SR-22

Non-owner car insurance can help you avoid a lapse in coverage if you’re driving frequently but don’t own a car, which will help you maintain the lowest possible premiums. Insurance companies frown upon interrupted coverage and may charge you higher premiums when you buy coverage again because their statistical models show that drivers who haven’t carried steady, uninterrupted insurance coverage tend to file more claims.

“For individuals who only drive a company car, getting a non-owner policy a minimum of six months before they get a personal car could potentially save them money on insurance for when they purchase their own car. It also provides them additional liability protection outside the employer’s base policy,” Pope says. But, note, the commercial auto policy does not provide coverage for employees unless it is endorsed to do so.

Non-owner SR-22 coverage will fill the state minimum liability coverage requirement if you don’t own a car but need insurance to keep your license. Compulsory insurance states, such as North Carolina, require all licensed drivers to have auto insurance whether they have a car or not.

“For that segment, the policy can be fairly expensive as the number of companies that offer it is fairly limited, but is worth having to avoid legal repercussions,” Pope says.

Who doesn’t need non-owner car insurance?

You don’t need non-owner car insurance if:

• You own a car that is already insured
• You live with your parents and are already on their insurance policy
• You only drive other people’s cars who have adequate limits

If you drive another person’s car, you’ll be covered by their insurance company as a permissive user. You don’t need non-owner car insurance in that situation as long as you know their limits are adequate.

How much does non-owner insurance cost?

Our data shows that the average cost of non-owner car insurance is $486 a year. Because non-owner insurance policies only include liability coverage, policyholders tend to drive less than those who own their own vehicles — and are less likely to be in accidents or have claims — and policies tend to be less expensive than standard insurance policies. 

Non-owner insurance policies can vary in cost based on several factors, including: 

• Your location. If you live in an area that is highly congested or has a high crime rate, you’ll pay more for insurance. 
• Your age. Teens and young adults are more likely to have claims and accidents, so their insurance premiums are more expensive. 
• Your driving record. Insurance companies will charge you much higher rates if you have speeding tickets, driving under the influence (DUI) convictions, or at-fault accidents on your record. 
• Liability coverage limits. You’ll pay a higher monthly or annual premium if you opt for higher-than-required liability limits. 
• Insurance company. Prices can vary by company. 
• Credit score (in some states). In some states, insurance companies use insurance-based credit scores as part of the underwriting process, so a poor credit score can result in higher insurance rates. 

Which companies have the cheapest non-owner car insurance rates?

Non-owner insurance usually costs less than a regular car insurance policy, but rates still vary a lot from one company to the next — especially if you have tickets or an accident on your record.

USAA has the lowest non-owner rate of any major company at $207 a year, but you can only buy it if you’re a veteran, an active-duty service member or a family member of one. If you don’t qualify, the cheapest options are:

• GEICO — $458 a year, the lowest rate open to everyone
• Travelers — $464 a year, about $6 more than GEICO
• Allstate — $826 a year, the most expensive of the group and roughly 80% more than GEICO

The chart below shows how major carriers compare.

USAA has the cheapest non-owner car insurance rates but is only available to military families. If you don’t qualify, State Farm is the cheapest option at an average of $361 a year.

Non-owner car insurance rates by state

New Jersey has the most expensive non-owner car insurance in the country, with an average annual rate of $1,141. It’s followed by Connecticut at $1,054 and Delaware at $936.

On the other end of the spectrum, South Dakota offers the cheapest non-owner car insurance at just $216 per year, followed by Wyoming at $270 and Maine at $271.

Drivers in New Jersey pay 428% more for non-owner car insurance than drivers in South Dakota — a difference of $925 per year. Where you live affects how much you pay because insurers price around each state’s crash frequency, repair and medical costs, lawsuit activity and minimum liability requirements. 

The graph below shows how much non-owner car insurance costs in your state.

Graph

Table

State	Average annual premium
Alaska	$296
Alabama	$469
Arkansas	$440
Arizona	$652
California	$500
Colorado	$506
Connecticut	$1,054
Washington, D.C.	$661
Delaware	$936
Florida	$668
Georgia	$510
Hawaii	$389
Iowa	$280
Idaho	$297
Illinois	$518
Indiana	$320
Kansas	$408
Kentucky	$499
Louisiana	$410
Massachusetts	$686
Maryland	$516
Maine	$271
Michigan	$855
Minnesota	$352
Missouri	$346
Mississippi	$474
Montana	$412
North Carolina	$681
North Dakota	$353
Nebraska	$402
New Hampshire	$437
New Jersey	$1,141
New Mexico	$413
Nevada	$823
New York	$606
Ohio	$291
Oklahoma	$477
Oregon	$644
Pennsylvania	$279
Rhode Island	$511
South Carolina	$448
South Dakota	$216
Tennessee	$507
Texas	$564
Utah	$658
Virginia	$549
Vermont	$460
Washington	$516
Wisconsin	$398
West Virginia	$442
Wyoming	$270

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How do non-owner car insurance rates vary by location?

Where you live inside a state matters as much as which state you’re in. Insurers rate non-owner policies by ZIP code, so your premium reflects how often drivers around you file claims — crash rates on local roads, car theft and vandalism, repair and medical costs in the area, and how often claims turn into lawsuits. A dense urban ZIP with heavy traffic and high theft rates prices higher than a quieter one a few miles away.

California averages $500 a year, but rates vary across the state. Its largest cities run from $481 in San Diego to $634 in Los Angeles.

City	Average annual premium	Average monthly premium
Los Angeles	$634	$53
San Diego	$481	$40
San Jose	$505	$42
San Francisco	$550	$46
Fresno	$506	$42
Sacramento	$529	$44
Long Beach	$544	$45
Oakland	$549	$46
Bakersfield	$516	$43
Anaheim	$510	$42

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Florida averages $668 a year, well above California, and its city-level spread is wider — $575 in Tallahassee to $832 in Fort Lauderdale. South Florida metros carry the highest rates in the state.

City	Average annual premium	Average monthly premium
Jacksonville	$667	$56
Miami	$817	$68
Tampa	$806	$67
Orlando	$668	$56
St. Petersburg	$791	$66
Hialeah	$775	$65
Port St. Lucie	$657	$55
Cape Coral	$607	$51
Tallahassee	$575	$48
Fort Lauderdale	$832	$69

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Best companies for non-owner car insurance

Some of the best car insurance companies in the nation offer non-owner car insurance. Based on our overall scoring, which weighs survey satisfaction, complaint history, financial strength and premium cost, these are our editors’ top three picks for non-owner car insurance.

1. Auto-Owners. With the highest overall score of 4.64 out of 5, Auto-Owners combines strong customer satisfaction, a low complaint index and the cheapest average premium on our list at $145.
2. Travelers. Scoring 4.3 overall, Travelers pairs a top-tier A++ AM Best financial rating with solid customer satisfaction.
3. GEICO. Close behind at 4.27 overall, GEICO also holds an A++ AM Best rating and keeps its premium among the more affordable options on the list.

The table below shows how all the major carriers compare.

Do you need a non-owner insurance policy? How to decide

If you don’t own a car, but occasionally get behind the wheel of a friend or family member’s car, non-owner insurance coverage can be a useful tool. It can provide liability coverage and peace of mind, and it’s relatively affordable. If you’re not sure whether you need a policy, ask yourself the following questions to help guide your decision: 

• Do I drive someone else’s vehicle or rent cars often? You likely need coverage
• Will I need to file an SR‑22 or similar certificate? You likely need coverage
• Am I without a car right now but don’t want a gap in coverage? You likely need coverage
• Am I sufficiently covered via someone else’s policy? You may not need coverage

Methodology

Insure.com commissioned non-owner car insurance rates from Quadrant Data Services in all 51 states. Rates are based on a 40-year-old male and female driver with a clean driving record, a good insurance score, and 100/300/100 coverage with a $500 collision/comprehensive deductible, driving a Honda Accord LX with a 12-mile commute and 10,000 annual mileage. We compared 65,756,440 insurance quotes from 195 insurance companies (73 company groups) across 34,595 ZIP codes. The rates are for comparison purposes only, your exact premium may vary.

What our expert says

Q: What is non-owner car insurance and how much protection does it offer?

Zack PopeAgency manager, David Pope Insurance in Missouri.

"It is designed for you to have an additional amount of coverage for liability purposes when driving a vehicle that you do not own. This, however, does not give a person a safety net to drive your friend's car that is uninsured as there should be a base policy in place for the vehicle.”

Leslie Kasperowicz

Managing Editor

 

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com.