Non-Owner Car Insurance in North Carolina

State Farm provides the cheapest non-owner policy in North Carolina at $37 per month, saving drivers $30 compared to the most expensive option. Not all major insurers offer non-owner policies. MoneyGeek found six providers that offer rates in the state. Most insurers don't have online quote tools for non-owner insurance and require you to call.

These rates are for a non-owner policy that meets North Carolina's minimum auto insurance requirements, which includes only liability insurance for property damage or injury you cause to others. Non-owner insurance is one of the cheaper types of car insurance: traditional policies have higher liability limits and include comprehensive and collision insurance that covers damage to your vehicle.

The average non-owner car insurance policy in North Carolina costs $67 per month (or $809 per year) based on market data. But the six insurers in our comparison average $51 monthly, showing potential savings when you shop around.

North Carolina state laws affect non-owner rates, but your personal characteristics, driving history, choice of insurer and policy limits have a bigger impact:

• Driving history: Clean records keep rates low. The average non-owner policy for a driver with an accident costs $78 per month, and drivers with a DUI will pay an average of $222 per month.
• Driver age and experience: Young drivers, especially teens, pay more for non-owner policies and all types of car insurance.
• Coverage limits: Increasing liability limits from state minimums to $300,000 in bodily injury liability and $100,000 in property damage liability costs $84 per month instead of $67.
• Choice of insurer: Our North Carolina data shows Erie charges the same driver $67 per month, while State Farm charges $37. Shop around!

Non-owner car insurance in North Carolina is a liability policy for drivers who don't own a vehicle but still need coverage, whether you frequently rent cars, borrow from friends or need to file an SR-22 to reinstate your license. It meets North Carolina's 50/100/50 minimum liability requirements and includes uninsured motorist coverage, which NC requires on all auto policies.

The policy covers injuries and property damage you cause to others, but not damage to the vehicle you're driving. How it pays out depends on the situation: when borrowing someone's car, it's secondary coverage that kicks in after their policy limits are exhausted. When renting a car, your non-owner policy is usually your primary liability coverage.

North Carolina allows non-owner car insurance. It's a legitimate liability policy recognized by the state, and it meets financial responsibility requirements, including for drivers who need to file an SR-22 in North Carolina. Not every insurer offers it, which is why some people have trouble finding it, but it's fully legal to purchase and use in North Carolina.

To get non-owner car insurance, you'll need to call an insurance company directly or work with an agent. Unlike standard auto insurance, insurers don't offer online quotes for non-owner policies, so you won't see it as an option on their website. MoneyGeek found average rates and phone numbers for insurers who offer policies in North Carolina.

Non-owner insurance works well for those who don't own a car. But it's useful only for drivers who frequently rent or borrow cars, want to maintain continuous coverage between vehicles or need to get their license reinstated.

• Frequent vehicle borrowing: Get non-owner insurance if you regularly drive family or friends' cars. The car owner's insurance covers claims, but their rates increase when you cause accidents. Your non-owner policy pays claims without affecting their premium.
• Regular car rentals: Rental companies charge $15 to $30 daily for liability coverage. A $32 per month non-owner policy breaks even after two rental days, then saves money while providing consistent coverage across all rentals.
• Maintaining continuous coverage: Coverage gaps increase your future rates 20% to 40%. Don't own a car now but plan to buy one later? A non-owner policy keeps your coverage record intact and prevents rate increases.
• License reinstatement: North Carolina requires proof of insurance to reinstate suspended licenses. A non-owner policy meets this requirement without requiring you to own a car.

A non-owner policy isn't appropriate for those who:

• Own a vehicle (buy standard coverage instead)
• Drive rarely (borrowing cars a few times yearly doesn't justify costs)
• Have household vehicle access (get listed on that policy)
• Need coverage for one short trip only (rental company insurance covers one-time needs)

Common questions about non-owner car insurance in North Carolina:

MoneyGeek compiled North Carolina auto insurance rates from the North Carolina Department of Insurance and Quadrant Information Services. We examined 240 car insurance quotes from six providers and identified the state's best and most affordable options.

Coverage Levels

We compared non-owner car insurance rates from companies in North Carolina using minimum coverage policies. North Carolina's minimum coverage includes:

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

Drivers and Cars in North Carolina

We used a sample driver profile with these characteristics to find the best and most affordable companies for non-owner car insurance in North Carolina:

• 40-year-old male
• Clean driving record
• Good credit history

Learn more about MoneyGeek's car insurance methodology.