Non-Owner Car Insurance in Michigan: The Cheapest Options and What You Need to Know

The average cost of non-owner car insurance in Michigan is $2,199 per year. MoneyGeek’s research shows that the most affordable, widely available company for a non-owner policy in the state is Nationwide, with an average annual cost of $1,972. Learn more and find the best options for non-owner car insurance in Michigan with this guide.

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Last Updated: 8/16/2022

Non-owner car insurance in Michigan is a good option for drivers who frequently use rental cars or car-sharing services or need insurance coverage to get their license reinstated. MoneyGeek’s analysis shows that in Michigan, the average annual cost of a non-owner policy for a driver with a clean record is $2,199. For drivers who have a DUI on their record, a non-owner policy costs an average of $7,605 per year.

MoneyGeek breaks down the average costs of non-owner car insurance in Michigan and explains who should and shouldn’t buy a non-owner policy.

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Cheapest Non-Owner Car Insurance Companies in Michigan

While a non-owner policy costs less than a standard auto insurance policy, you can still save more money on it by shopping around and comparing the rates of different insurers in the state.

The following widely available companies offer the cheapest average rates for non-owner car insurance in Michigan:

  • Nationwide: $1,972 per year
  • GEICO: $2,425 per year

For drivers with a military background, USAA is the cheapest option, with an average cost of $469 per year. Travelers is the most expensive insurer at an average of $3,089 per year for a non-owner policy.

These average costs are for a 40-year-old driver with a non-owner car insurance policy in Michigan with limits detailed in MoneyGeek’s methodology.

Cheapest Non-Owner Car Insurance Companies in Michigan

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  • Company
    Annual Premium
    Monthly Premium
  • USAA
    $469
    $39
  • Nationwide
    $1,972
    $164
  • GEICO
    $2,425
    $202
  • Progressive
    $3,041
    $253
  • Travelers
    $3,089
    $257
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How Much Is Non-Owner Car Insurance in Michigan?

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The average cost of non-owner car insurance in Michigan is $2,199 per year. In comparison, a standard auto policy costs an average of $3,616 per year. There is an average cost difference of $1,417 between these types of policies.

With a DUI on your record, car insurance costs can be significantly higher. For example, non-owner car insurance in Michigan for a driver with a DUI costs an average of $7,605 per year, $5,406 more than a driver with a clean record typically pays for similar coverage.

Cheapest SR-22 Non-Owner Car Insurance Companies in Michigan

In Michigan, an SR-22 certificate is necessary to get your license reinstated. You may also need to file an SR-22 in Michigan after a serious violation like a DUI. If you need to meet insurance requirements, non-owner SR-22 car insurance may be the most affordable option for you.

For drivers with a DUI, the following widely available companies offer the lowest average rates for non-owner car insurance in Michigan:

  • Progressive: $4,062 per year
  • Nationwide: $4,123 per year

If you have a military background, USAA is the most affordable option, with an average annual cost of $674. The most expensive company is Travelers, with an average cost of $15,720 per year.

Cheapest SR-22 Non-Owner Car Insurance Companies in Michigan

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  • Company
    Annual Premium
    Monthly Premium
  • USAA
    $674
    $56
  • Progressive
    $4,062
    $339
  • Nationwide
    $4,123
    $344
  • GEICO
    $13,445
    $1,120
  • Travelers
    $15,720
    $1,310
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What Is Non-Owner Car Insurance in Michigan?

If you don’t own a car and need insurance coverage, you can benefit the most from non-owner car insurance in Michigan, also called non-owner liability insurance. It includes liability coverage and other minimum coverages required by the state and gives you the option to add uninsured/underinsured motorist coverage. However, it’s different from a full coverage policy and does not include comprehensive and collision insurance.

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In Michigan, a non-owner policy needs to meet the following minimum coverage requirements:

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability per accident
  • $10,000 property damage liability per accident outside Michigan
  • $1 million property damage liability per accident within Michigan
  • $250,000* personal injury protection

*Lower PIP limits available for certain Medicare and Medicaid recipients

Who Should Get Non-Owner Car Insurance in Michigan?

In Michigan, a non-owner policy is the best option for drivers who:

  • Need insurance to get their license reinstated: In Michigan, you can get your license suspended due to reckless driving, excessive moving violations or a DUI conviction. The law requires you to file an SR-22 to get your license reinstated. In this case, the most affordable option for you would be to get non-owner SR-22 car insurance.
  • Frequently use rental cars or car-sharing services: Rental car insurance can be pretty expensive if you often rent cars. To save money, you can opt for a non-owner policy and get coverage in case of accidents.
  • Temporarily don’t have a car but want to maintain insurance coverage to avoid a lapse: An insurance coverage lapse can significantly increase your car insurance expenses because insurers might consider you a high-risk driver and give you higher car insurance quotes. It’s best to get a non-owner policy to avoid a lapse in your insurance coverage.

Who Shouldn’t Get Non-Owner Car Insurance in Michigan?

Non-owner car insurance is not necessary for a borrowed vehicle. If you are a resident of Detroit and you borrow a friend’s car with their permission, you won’t need a non-owner policy since their personal auto insurance policy will cover you. It’s also not recommended to buy a non-owner policy if you are not a frequent user of rental cars. If you only rent cars once a year or so, rental car insurance would be sufficient.

How to Get Non-Owner Car Insurance in Michigan

MoneyGeek confirmed that all companies mentioned in this guide provide non-owner car insurance in Michigan. However, you cannot get online quotes for a non-owner policy. To ask for a quote, it’s best to call these companies using the contact information listed below.

Contact Non-Owner Car Insurance Companies in Michigan
  • Company
    Contact Number
  • USAA
    800-531-8722
  • Nationwide
    877-669-6877
  • GEICO
    800-207-7847
  • Progressive
    888-671-4405
  • Travelers
    866-248-9970

Frequently Asked Questions About Michigan Non-Owner Car Insurance

A non-owner policy is different from a standard auto insurance policy. The following frequently asked questions about non-owner car insurance in Michigan may help you understand the difference.

Methodology

MoneyGeek collected non-owner car insurance quotes across Michigan in collaboration with Quadrant Information Services. These policies were for a 40-year-old driver who either has a safe driving record or a DUI. All policies met Michigan’s minimum car insurance requirements, with the exception of liability insurance, for which the policies have:

  • $50,000 in bodily injury liability per person
  • $100,000 in bodily injury liability per accident
  • $50,000 in property damage liability per accident

The data used for traditional car insurance policies had the same limits.