Non-Owner Car Insurance Coverage

Non-owner car insurance coverage is for drivers who don’t own a vehicle, but rent or borrow one on a frequent basis. It provides state minimum coverage, and can be purchased with many major insurance companies.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Written by D. Gilson, PhD
Professor & Published Author D. Gilson, PhD

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 5, 2022

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The Highlights

  • Non-owner car insurance is specifically for drivers who don’t own a vehicle
  • Non-owner insurance provides liability coverage that meets the minimum state requirements
  • Rates average between $300 and $500 per year

You know car insurance is required to drive legally, but if you don’t own a car, are you still required to have an auto insurance policy? There is an option, referred to as non-owner car insurance. Non-owner policies are helpful when you need to borrow a car, so that any damage or bodily injury that may happen in the event of an accident will be covered.

You may be wondering if you actually need this coverage, and also what comes included with a non-owner car insurance policy. The good news is, a non-owner car insurance policy does exist, and you can actually compare car insurance to find affordable, non-owner coverage.

What is non-owner car insurance?

Non-owner car insurance is exactly what it sounds like: car insurance for people who don’t own vehicles. Non-owner car insurance does meet the minimum liability coverage requirement set by each state. While it may not seem like a standard policy, it is necessary coverage for drivers who don’t own the car they’re driving.

You can also buy add-ons like personal injury protection and uninsured/underinsured motorist coverage, which may be a good idea to consider, given that an average of 13% of drivers are uninsured, according to the Insurance Information Institute.

It’s typically a good idea to purchase non-owner car insurance coverage if you don’t own a vehicle but often borrow or rent one on a frequent basis. That way, you have coverage if you get in an accident while driving someone else’s vehicle.

However, like standard liability coverage, non-owner car insurance will only cover the costs of the other driver’s property and medical expenses up to your policy limits.

You typically don’t need this type of coverage if you own a vehicle, or you are listed as the primary driver on a particular vehicle. However, if you are using a vehicle in a business context, you should look into commercial non-owner coverage. If you don’t currently have a driver’s license and won’t be able to obtain one within 30 days, you may also want to consider this type of policy.

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Which companies offer non-owner car insurance?

Most of the best car insurance companies sell non-owner car insurance coverage to drivers who don’t own vehicles. This would have to be the primary policy that a driver would hold in this case, so it makes sense that you should be able to purchase non-owner coverage from GEICO. On average, rates are between $300 and $500 per year, and to give you an idea of what you might pay, we’ve pulled average rates from a few of the major companies.

Annual Non-Owner Car Insurance Rates by Company
Insurance CompanyAverage Annual Non-Owner Car Insurance Rates
GEICO $311
State Farm$408
Farmers$521
Progressive$576
Allstate$638
Nationwide$677
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These are baseline rates, which will vary depending on where you live, your age, your driving record, and other factors. Any insurer is going to have particular factors they utilize in order to determine what someone is going to pay, no matter what type of coverage is being requested. High-risk drivers, people with lower credit scores, or drivers that haven’t been on the road very long will often see a heightened annual cost.

That being said, a driver should never lie about their driving record, credit score, or anything else that a company may request. Nor should a driver lie about having non-owner coverage if they don’t at the time of an incident, and then later add it to their policy. That could be seen as insurance fraud, and could damage your future in more than one way.

What is commercial non-owner coverage?

If you own a business, you can purchase non-owner coverage to be added to your commercial policy, so you have liability coverage in the event one of your employees uses their personal vehicle for occasional business use. However, this coverage will not apply if the vehicle is in any way officially connected to your business. Should they be using it for business purposes, you would then have to look into a standard auto policy for commercial use.

Non-Owner Car Insurance: The Bottom Line

Non-owner car insurance provides liability coverage that meets the minimum coverage requirements in your state, and is a wise purchase if you don’t own a vehicle but regularly borrow or rent. Much the same as any other type of policy, it will help a driver avoid medical bills, repair costs, and any other potentially high financial demands that come along with borrowing a vehicle.

You can purchase this type of coverage from most major insurance companies, and rates average between $300 and $500 per year. If you aren’t a vehicle owner, there are still plenty of options out there, and types of coverage to consider. An auto policy will be necessary if you’re behind the wheel, so spending even a small period of time researching your options can help you in the long run.

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Your one-stop online insurance guide. Get free quotes now!

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