A non-owner car insurance policy provides liability coverage for drivers that do not own the vehicle(s) they drive and are not listed on the vehicle owner’s insurance policy. Those who may need non-owner insurance include those who drive frequently but do not own a car, rent cars regularly, use car sharing services often, and need to get or reinstate a license.
Best Non-Owner Car Insurance
- Farmer’s Insurance
- State Farm
- Liberty Mutual Insurance
- American Family
Below is a list of insurance companies to purchase coverage from.
Some people are required to have car insurance by law as they are considered to be “high-risk” drivers. If you have had a DUI conviction, been given a ticket for reckless driving, got into multiple traffic offenses in a short time frame, or was caught driving without car insurance, you may be considered a “high-risk” driver. High-risk drivers often have a harder time buying both car-owner and non-owner car insurance. People who have a lower credit score might also have a difficult time buying non-owner car insurance.
Luckily, Nationwide is one of the companies that provide coverage to those who are considered high-risk drivers and those who have a lower credit score. They also offer a lower rate to these two groups of customers depending on each customer’s circumstances. The average cost of a non-owner car insurance policy purchased from Nationwide is about $677 a year, or about $56 a month.
Nationwide’s policy is a liability-only coverage, meaning it only pays for injuries and property damage the other driver and his or her passengers suffer in an accident for which you were at fault. Nationwide’s policy will not pay for your injuries or your passengers’ and will not cover damage to the vehicle you were driving at the time of the accident.
Progressive offers non-owner car insurance for those who don’t own a car but still want or need to be insured. Similar to Nationwide, Progressive’s plan provides liability-only coverage, which means they will only cover bodily injuries and property damages the other driver suffers if you were at fault in a car accident. The plan does not cover your injuries or your passengers’ injuries and will not cover the damage to the vehicle you were driving.
Because a Progressive non-owner car insurance policy only covers you and not the vehicle you drive, premiums are lower than a standard car insurance. The average cost of non-owner car insurance is $576 per year, or almost $50 per month.
Geico has one of the most affordable non-owner auto insurance policies out there with the average premium ranging from $200 to $300 a year, or $17 to $25 a month. If you have a regular Geico auto policy, your policy might already covered rental cars, but you can always check with Geico to make sure rental cars are covered.
Geico’s non-owner car insurance is a liability-only policy. In an accident, providing you are at fault, any expenses that come from the other driver’s bodily injuries and those of their passengers will be covered, along with any property damage the other driver suffers. The coverage will not pay for your bodily injuries or that of your passengers, and will not pay for any damage the vehicle you were driving sustain.
4. Farmers Insurance
Farmers Insurance is a good company to purchase insurance from as they cater more discounts to low-risk drivers. If you sign up for the Signal program and download the app onto your phone after buying non-owner insurance from Farmers, you can earn a discount based on the actual quality of your driving. Additionally, you earn a 5% from using the program and the app. However, not everything is applicable to a non-owner insurance policy and discounts may vary depending on where you live.
Farmers offers a liability-only coverage for their non-owner car insurance policies. You might or might not be able to upgrade to a comprehensive auto policy. Also, you might or might not be able to add additional or customized coverage options.
5. State Farm
Jake from State Farm will help you out with any questions you have regarding your auto insurance, even if it’s at 3 AM, at least according to State Farm’s commercial. State Farm rewards its customers with many discounts like Drive Safe and Save or Good Student. State Farm also rewards customer loyalty with discounts when customers insure more than one car or bundle two or more policies together.
If you have a clean record as a driver, State Farm’s non-owner insurance can be affordable with the average cost being $408 a year, or only $34 a month. The company is also famous for its exceptional customer service alongside with competitive insurance rates.
State Farm’s non-owner car insurance offers liability-only coverage, similar to the other companies listed on this list.
6. Liberty Mutual Insurance
Liberty Mutual is the 6th largest insurer by premiums written in 2019. Thanks to the volume of premiums, they are able to offer competitive auto insurance rates, especially for drivers with a clean driving record. Liberty Mutual also offers additional discounts such as Good Student, paid-in-full, and alternative energy. If you insure more than one car or bundle two or more policies together, you may also get an additional discount.
Liberty Mutual offers liability-only coverage for non-owners, similar to the other companies on this list. The average annual non-owner insurance rate from Liberty Mutual is $408, or $34 a month. The actual rate will depend on your driving record, insurance history, where you live, and more.
Allstate is another insurance company that offers non-owner car insurance. Allstate offers a liability-only coverage. This means that in a car accident, providing you are at fault, your non-owner car insurance will cover for the other driver’s bodily injuries and those suffered by his or her passengers as well as any property damage suffered by the other driver that results from the accident. The insurance policy will not cover for your bodily injuries, those of your passengers, or any property damage sustained by the vehicle you drive.
Allstate’s non-owner insurance plans costs approximately $638 a year, or $53.17 a month. The final premium will depend on many factors such as where you live, your insurance history, the type of vehicle you drive, your driving record, and more.
8. American Family
American Family offers liability-only coverage for non-owners, similar to the other companies on this list. American Family’s premiums are fairly affordable, with the average cost of non-owner car insurance being around $480 per year, or $40 per month. The premium is cheaper for low-risk drivers as the company offers many discounts for safe drivers, good students, and those who take a defensive driving course.
You can also get more insurance discounts from American Family through their customer loyalty rewards or other discounts like paperless, autopay, paid-in-full, etc.
What Is Non-Owner Car Insurance and What Does It Cover?
What is non-owner car insurance? Why would anyone need car insurance when they don’t even have a car? Do you even need to be insured? The answer depends on a variety of factors, of course, but first we’ll talk about what non-owner car insurance is.
Non-owner car insurance is for those who need to be insured, have a driver license in most cases, but do not own a car and is not listed on the car owner’s insurance. Most non-owner car insurance policies offer liability-only coverage. This means that if you get in an accident for which you were at fault and the other driver and his or her passengers sustain bodily injuries, the insurance company will cover for their bodily injuries. Should the other driver’s vehicle suffer any damage, the insurance company will also cover vehicle damage expenses as well.
A non-owner policy is different from a car-owner car insurance in that it does not cover the vehicle and often is not a comprehensive plan. Because of this, the premiums are often much lower than the average cost of a car-owner car insurance (most of the time, the monthly premium is below $100).
How Does Non-Owner Car Insurance Work?
Non-owner car insurance policies are often considered as secondary coverage, meaning it is only utilized if the car owner’s primary coverage does not sufficiently cover all damages. Non-owner car insurance is purchased on a per-person basis, thus only you will be covered by a non-owner policy and you cannot add someone else onto your policy.
Typically, non-owner policies offer liability-only coverage. Here is an example of how this works. Let’s say you borrow someone’s car and get in an accident. The accident costs a total of $50,000. The car owner’s primary coverage only covers $40,000. Assuming the remaining $10,000 are liability-related expenses (the other driver’s bodily injuries or property damages), your insurance will kick in and cover this $10,000.
Who Needs Non-Owner Insurance?
You should consider purchasing a non-owner car insurance plan if you:
- Drive frequently but do not own a car
- Rent cars regularly
- Use car sharing services often
- Need to get or reinstate your license
If You Drive Frequently But Don’t Own A Car
This does not apply if you are listed on the car owner’s insurance, which often is the case for people from the same family. If you work as a chauffeur and often use your boss’s car to run errands but are not on your boss’s insurance plan, you might want to purchase non-owner insurance. If you borrow cars from others frequently, whether from your friend(s) or other people, non-owner insurance may also be a good option.
The non-owner insurance will ensure that you have some coverage each time you drive so you do not have to worry about whether the car owner’s insurance policy will cover you, if its liability limits will be too low, or getting caught for driving without car insurance.
Be aware, however, that you can be added to the car owner’s insurance if the car owner is your family member or if you live with him or her. You might also need to be added to the car owner’s insurance policy if you borrow the same car from the owner consistently. Being added to the car owner’s insurance will provide you with primary coverage and cover you in the event of an accident.
If You Rent Cars From Rental Companies Frequently
Many car renting businesses have some sort of non-owner car insurance for renters, so make sure to ask about this to avoid paying for your own non-owner car insurance unnecessarily. However, insurance bought from the car rental business often costs at least $20 a day. If you regularly rent cars, these daily costs can add up quickly and be much more expensive than having your own annual non-owner car insurance policy.
You should also check to see if, should the rental car suffer any damages, the rental car’s damages would be covered by your rental car insurance. The rental car insurance bought with a credit card will only cover damage to the rental car most of the time and will not cover any liability expenses that come if someone sues you for damages. However, combining a credit car rental insurance with a (liability-only) non-owner car insurance policy provides you with a coverage that is almost comprehensive. This is because now both insurance policies cover the rental car as well as the liability portion should you get in an accident and be found at fault.
If You Use Car Sharing Services Often
If you use car sharing services such as Zipcar every few months, it might not be worthwhile to purchase non-owner car insurance (you can still do it just to be safe if you want to, of course). However, if you use other people’s cars a few times a week, you might want to consider purchasing non-owner car insurance. Car sharing services are different car rental businesses as they (most likely) do not offer non-owner car insurance and don’t offer car insurance afforded by a credit card. Thus, if you regularly use car sharing services and don’t want to be caught driving without car insurance, you might want to purchase a non-owner policy. Driving without car insurance can result in a fine and a ticket in many states, along with a possible suspension of your license. Those consequences don’t sound very fun, do they?
If You Need to Get or Reinstate Your License
If you have committed a traffic offense, such as DUI or reckless driving, you might need to get car insurance to either get a license or to reinstate your license. Moreover, you may be required to get SR-22 or FR-44 insurance. The form SR-22 cannot be filed by yourself but must be filed by your insurer, so you would need insurance. Even if you do not have a car and do not drive during this time, a non-owner car insurance can come in handy for a variety of reasons, among which are:
- You will have no “lapse in coverage”, which makes you a lower-risk driver than those who have a lapse in coverage. A lapse in coverage refers to a period of time when you do not have insurance, even if you did not own any vehicles and/or did not operate any vehicles during this period. Having a lapse in coverage might make you a higher-risk driver than those who have no lapses and thus be subject to higher premium rates
- A non-owner car insurance policy for an SR-22 will be cheaper than an insurance policy for car owners. While your premiums will most likely be higher than drivers who have a clean driving record, it is still a more affordable way of reinstating your license. Depending on the SR-22 requirements, you might need to maintain an auto coverage for a period of time (usually two to five years) before you can reinstate your license.
Please keep in mind that not every car insurance company provides non-owner car insurance, and not every company that offers non-owner car insurance will sponsor an SR-22 or FR-44. Thus, if you need an insurer to file forms SR-22 and FR-44 for you, you should check to see if the company you’re interested in does this.