Car Insurance What is insurance on a license and how does it differ from regular car insurance? Insurance on a license, also called non-owner car insurance, provides liability coverage for people who drive but don’t own a car. It covers injuries and property damage you cause in an accident when driving a borrowed or rented vehicle. View Carriers Please enter valid zip Compare top carriers in your area Written by Insure.com's Editor | Updated on: October 10, 2024 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. 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. Key TakeawaysInsurance on a license, or non-owner car insurance, provides liability coverage for individuals who drive but don’t own a car, protecting them from costs if they cause an accident.Unlike regular car insurance, which is tied to a specific vehicle, non-owner insurance covers the driver when they borrow or rent a car, but it doesn’t cover damage to the vehicle itself.This type of insurance is ideal for people who rent cars, use car-sharing services, or need coverage without owning a vehicle.What is insurance on a license?Insurance on a license is a policy that provides liability coverage to individuals who drive but do not own a car. This coverage kicks in when you borrow or rent a vehicle and are involved in an accident.This type of insurance is ideal for people who frequently rent cars, borrow cars from friends or family, or use car-sharing services. It’s also useful for individuals who have a driver’s license but don’t currently own a vehicle.Difference between insurance on a license and regular car insuranceRegular car insurance is tied to a specific vehicle and covers the policyholder’s vehicle for various risks like collisions, theft, and damage. On the other hand, non-owner car insurance is tied to the individual driver rather than a specific vehicle. It provides liability coverage when the insured person drives a car they don’t own.Insurance on a license covers damage and injuries to others if you are at fault in an accident while driving a car you don’t own. It includes bodily injury and property damage liability. Regular car insurance requires the policyholder to own or lease a vehicle, whereas non-owner insurance does not.Final thoughtsInsurance on a license is a valuable option for drivers without a car, offering liability coverage for occasional driving. Regular car insurance, on the other hand, provides comprehensive coverage for vehicle owners, protecting against a wide range of risks. 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. ✕ Have we answered your question? Yes No Awesome! We appreciate your feedback. If you have any more questions, feel free to ask! We're sorry to hear that! Your feedback helps us improve. Could you let us know how we can make it better? Please enter valid input. We appreciate your feedback and are working to enhance your experience. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? 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