Car Insurance What is insurance on a license and how does it differ from regular car insurance? By Insure.com's Editor | Updated on August 21, 2023 Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. Insurance on a license, often known as non-owner car insurance, covers individuals who don’t own a car but still drive occasionally. It’s a good choice for those renting cars, using car-sharing services, or having a suspended license due to violations. It provides liability coverage, which pays for injuries or damage you cause to others in an accident. However, it doesn’t cover the vehicle you’re driving but focuses on protecting you from unexpected expenses. Differences from regular car insurance Regular car insurance is for those who own a vehicle and provides coverage for both the driver and the car. It typically includes liability, comprehensive and collision coverage for your vehicle. On the other hand, insurance on a license doesn’t cover the car itself; it’s solely for the driver’s liability protection. Conclusion Regular car insurance covers both the driver and the car, insurance on a license is tailored for individuals who don’t own a car but still need liability coverage when driving other vehicles. It helps maintain coverage while being a responsible driver, even without owning a car. Just like any other financial decision, it’s best to compare options and talk to an insurance agent to determine the best choice for your needs. In case you missed it Best Car Insurance Companies of 2023 Car insurance rates by state: The most expensive and cheapest states for car ins... What is Full Coverage Car Insurance? A complete guide to car insurance costs for seniors A complete guide to adding a teenager to your car insurance policy What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Buying and insuring a used car: Most and least expensive models to insure in 202... The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to Car Insurance Discounts Proper insurance coverage for college-bound children How to read (and actually understand!) your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 Get instant quotes now ! Please enter valid zip Get Quotes