Updated: May 13, 2025
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Non-owner insurance offers liability coverage for drivers who rent or borrow cars. It's useful if you’re between cars, reinstating your license or want to avoid a lapse in coverage.
If you regularly drive the same car, adding yourself as a driver to the owner’s existing policy is better.
If you rarely drive, you can still drive with coverage through the permissive use clause. It covers licensed drivers who borrow the insured's car with permission for infrequent, short trips.
You can get car insurance even if you don’t own a vehicle through a non-owner car insurance policy. This specialized insurance provides liability coverage that follows you — the driver — instead of a specific car.
Non-owner car insurance is useful if you frequently rent cars, borrow vehicles, need to reinstate a suspended license or want to maintain continuous coverage between vehicles. It's a flexible and cost-effective way to stay insured, even when you're not behind the wheel every day.
Non-owner car insurance mainly provides liability coverage, which pays for injuries or property damage you cause while driving a borrowed or rented car. Some policies may also include optional protections like uninsured motorist coverage or personal injury protection, depending on your state.
Non-owner insurance sticks to you — not a specific car. That means it usually doesn’t include collision or comprehensive coverage and won’t pay for damage to the car you’re driving.
If you frequently use a specific car, such as a family member's, it's best to be listed on that car's primary insurance, as non-owner policies aren't meant for regular use of the same vehicle.
Although non-owner insurance can protect you as a driver, it doesn’t cover everything. Its limitations are important to understand — especially if you borrow the same car often or need broader protection.
Non-owner policies don’t include collision or comprehensive coverage. That means they won’t pay for repairs if the car you’re driving is damaged in an accident, stolen, vandalized or affected by natural disasters.
If your personal belongings are stolen or damaged while inside the borrowed or rented car, a non-owner policy won’t cover those losses.
If the car you're borrowing is in the shop due to an accident, a non-owner policy won't pay for a rental car for you to use in the meantime.
If you borrow a specific car regularly, like a family member's car, the car's primary insurance policy should list you as a driver. Non-owner insurance is not designed for regular or daily use of the same vehicle.
Non-owner car insurance is a flexible option for drivers who don’t own a car but still find themselves behind the wheel. It can help you stay covered during transition periods, provide liability protection when renting or borrowing cars, and even fulfill legal requirements to reinstate a suspended license.
Scenario | Explanation |
|---|---|
You frequently rent or borrow cars | Non-owner insurance gives you liability protection if you often rent vehicles or borrow a friend or family member’s car. It acts as a safety net in case something goes wrong. |
You don’t currently own a car but want to maintain coverage | If you’ve sold your car or moved temporarily and left it behind, a non-owner policy helps you maintain continuous coverage — which can lead to lower rates in the future. |
You need to reinstate your license | Some states require proof of insurance to reinstate a suspended license. A non-owner policy can satisfy that requirement, even without a vehicle. |
You want better protection than rental insurance offers | Rental car insurance can be limited. A non-owner policy often provides broader liability coverage, giving you more peace of mind when you’re on the road. |
On average, a non-owner car insurance policy costs between $285 and $546 per year, depending on the level of coverage. According to our analysis:
Use the table below to compare rates and coverage options based on your specific needs.
| USAA | $575 | $48 |
| Auto-Owners Insurance Co | $578 | $48 |
| GEICO | $867 | $72 |
| Travelers | $885 | $74 |
| State Farm | $923 | $77 |
| Allied | $1,043 | $87 |
| Unitrin | $1,065 | $89 |
| Nationwide | $1,146 | $96 |
| Kemper | $1,156 | $96 |
| Allstate | $1,156 | $96 |
| Progressive | $1,159 | $97 |
| Farmers | $1,328 | $111 |
Personal auto insurance covers your car and often includes extra protections, making it more expensive. In contrast, non-owner car insurance focuses on protecting the driver from damages to others and is typically cheaper.
Criteria | Non-Owner Car Insurance | Personal Auto Insurance |
|---|---|---|
Coverage | Primarily provides liability coverage. Covers damages to other people's property or injuries to others. | Offers comprehensive coverage, including liability, collision and more. Covers you and your own vehicle. |
Car Ownership | Designed for individuals who don't own a car but drive occasionally. | Tailored for individuals who own or lease a vehicle. |
Coverage Limitations | Doesn't cover damages to the car you're driving or personal items inside the car. | Typically covers damages to your own car and may also cover personal items. |
Cost | Generally less expensive due to limited coverage. | Can be more expensive due to broader coverage. |
While non-owner car insurance is a valuable tool for many drivers without cars, there are other ways to ensure you're protected on the road. Always assess your driving habits, frequency, how much car insurance you need and the vehicles you'll be using to determine the best coverage option for your situation.
You don’t always need your own policy to be covered. If you frequently drive a specific car or live with someone who owns one, there are other ways to stay insured without buying a separate non-owner policy.
If you regularly drive a family member’s or roommate’s car, it might make more sense to be added to their insurance policy as an occasional driver. This ensures you're covered whenever you use the vehicle and helps avoid potential claim issues.
It’s a good option if:
Many insurance policies include a "permissive use" clause. This means that if you have a valid license and borrow someone’s car with their permission for a short, infrequent trip, you may be covered under their policy — even if you’re not listed as a driver.
It could apply if:
Coverage under permissive use varies by insurer. Some may offer full protection, while others provide limited liability only. Always confirm with the vehicle owner’s insurance company to avoid surprises.
Having car insurance without owning a vehicle is both possible and practical, especially for frequent drivers of borrowed or rented cars. In this guide, we discussed ways to get a policy without a vehicle to help you understand your options and make an informed decision as to what is the best choice for you.
Non-owner car insurance is a good option if you regularly drive a rented or borrowed vehicle or need proof of insurance to meet legal requirements. Unlike personal auto insurance, which covers a specific vehicle, non-owner policies cover the driver, regardless of the car they're in. Another option for regular drivers is to be added to a car owner's existing policy. If you rarely drive, you might not need a policy and may be covered by the permissive use clause.
Below are answers to common questions to help you better understand how you can get car insurance without a car:
Yes, getting car insurance without a car is possible. With a non-owner car insurance policy, you get liability-only coverage that pays for damages to the other driver if you’re involved in an at-fault accident.
Non-owner car insurance is ideal for drivers who:
Generally, you can’t insure a car that you don’t own. But you can get coverage through a non-owner car insurance policy.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
