Non-Owner Car Insurance: Best and Cheapest Companies (July 2023)

Non-owner car insurance provides liability coverage for property damage or bodily injury to others if you are found at fault in a car accident. It does not provide coverage for you. Non-owner car insurance is a good option for people who need to insure a car that is not in their name such as those who don’t own a vehicle but drive often, or often drive rental cars.

Offered by most major insurers, non-owner liability insurance is typically cheaper than regular car insurance. The best and cheapest non-owner car insurance for most drivers is from GEICO at $463 per year, $39 per month. If you need to file an SR-22 with your non-owner policy, the cheapest option is State Farm, at an average cost of $601 per year, $50 per month.

Non-owner car insurance, also called non-owner liability insurance, covers property damage and bodily injury for others if you are found liable for the car accident when driving a car that is not your own. It does not cover damage to the car you are driving or your own injuries. Depending on the car insurance company, you also may be able to add coverage for medical payments, personal injury protection, uninsured or underinsured drivers and rental car liability coverage.

Non-owner car insurance is a good choice if you often borrow someone else’s car, frequently rent cars or need liability insurance to get your driver’s license reinstated. These policies are typically less expensive than regular car insurance. In fact, the average cost of a state minimum liability-only policy for non-owner car insurance is $448 per year, compared to roughly $490 per year for a car owner policy.

The best car insurance offers great customer service, claim satisfaction, coverage options and financial stability — all at an affordable rate. The best non-owner car insurance companies for most drivers are:

• GEICO with an average annual premium of $463, $39 per month
• Travelers with an average annual premium of $511, $43 per month

USAA scored the highest in our analysis of best companies for non-owner car insurance, but USAA is only available to veterans, current military and their families.

As you comparison shop for the best non-owner policy, you need to consider how much insurance you need, as raising or lowering your limits and deductible will impact the cost of your policy. You'll also need to consider what type of non-owner coverage options you should include in your coverage to make sure your insurance coverage meets your needs.

To discover the best non-owner car insurance, MoneyGeek gathered data from J.D. Power, AM best, and the National Association of Insurance Commissioners (NAIC), and Quadrant Information Services and created a weighted ranking scoring system. Learn more about our study and weighted ranking system in our methodology.

The best non-owner insurance at a national level may not be the best in your state. Some insurance providers may only offer services to select states or locations and can be excellent options to get great customer service at an affordable price. Review the table below to find the best non-owner car insurance company for a state minimum liability-only policy. Click on your state to learn more about the best non-owner insurance options for your location.

Comparison shopping for cheap non-owner car insurance can save you over $300 on your annual premiums. The cheapest non-owner car insurance options for state minimum liability-only coverage are:

• GEICO at $463 per year, $39 per month
• Travelers at $511 per year, $43 per month

These quotes represent national averages. We recommend requesting quotes from at least two companies to compare, as your quote may vary due to your driving history and location.

Car insurance offerings and rates vary by state, so while GEICO and Travelers might be the cheapest at a national level, the cheapest non-owner car insurance where you live may vary. Use the table below to see the cheapest non-owner car insurance provider for a state minimum liability-only in your state. Click your state to explore more non-owner car insurance policies, providers, and options for where you live.

Drivers who have committed a serious driving violation, such as a serious accident or DUI may need proof of insurance, or an SR-22, to get their license reinstated. If you no longer own a car, a non-owner SR-22 car insurance policy could provide the coverage you need. Drivers who need to file SR-22 insurance for a non-owner policy can save over $700 annually by comparison shopping to find the cheapest rate.

The cheapest non-owner car insurance companies for most drivers are:

• State Farm with an average annual premium of $601 — $50 per month
• Travelers with an average annual premium of $674 — $56 per month

Overall, the most affordable company for non-owner car insurance with a serious accident on record is USAA, with a rate of roughly $439 per year, but USAA only offers insurance to active and retired military members and their families.

The national average cost of non-owner car insurance for a state minimum liability-only policy and a clean driving record is $448 per year versus $490 for regular liability-only car insurance — a difference of $42. If you have an accident on record, a regular state minimum liability-only policy costs $717 on average. A non-owner policy for the same driver would cost $579 — a difference of $138 annually. You might be able to save even more by shopping around to get a non-owners insurance quote.

Unlike regular car insurance, most car insurance companies won’t provide a non-owners insurance quote online. Therefore, to get a non-owners insurance quote, you will need to call and speak with an insurance agent.

• USAA: 800-531-8722
• GEICO: 800-207-7847
• Travelers: 866-248-9970
• State Farm: 800-782-8332
• Farmers: 888-327-6335
• Progressive: 888-671-4405
• Nationwide: 877-669-6877
• MetLife: 800-422-4272

Non-owner car insurance is suitable for drivers who don’t typically own their own vehicle. These are drivers who often find themselves driving a borrowed car or a rental and are usually looking into getting a one-day car insurance policy. Because non-owner car insurance policies are usually less expensive than regular car insurance, it can be a sensible option for a specific type of person who drives, or wants to drive, and doesn’t own a car. Because these policies cover property damage or bodily injury for other people involved in the car accident when you are found to be at fault — which can sometimes be very costly — it can help protect your finances from large and unexpected bills.

For drivers who frequently rent cars, paying for rental car insurance from the rental car agency can add up quickly, costing far more than a non-owner car insurance policy. When applying for non-owner car insurance, be sure to ask the insurance agent if the policy you purchase will provide liability coverage if driving a rental car.

Non-owner car insurance also provides peace of mind when driving a friend or neighbor’s car — especially if you get into an accident where you are at fault. But keep in mind, non-owner car insurance may not cover you if you live with the person whose car you borrow or if you borrow the same car frequently. Instead, you may need to be added as an insured driver to their policy.

If you have a serious traffic violation on your driving record and you've had your driver's license suspended, you may need to submit proof of car insurance — an SR-22 — before the state will reinstate it. Because it’s less expensive than regular car insurance, non-owner car insurance can be an affordable option to meet this requirement.

Nevertheless, keep in mind that you cannot file an SR-22 yourself. Your car insurance company must file it on your behalf. Since not all car insurance agencies sponsor an SR-22, you’ll want to confirm they offer this as part of your coverage before opting for their non-owner insurance policy.

Non-owner car insurance is not a good option if you don’t own a car and rarely drive. If you do borrow someone’s car and get into an accident, the car owner’s insurance typically will cover the damages resulting from the accident. However, it’s always a good idea to check with the car insurance company first.

Even if you don’t own a car but drive often — say, if you regularly drive your roommate’s or family member’s car — non-owner car insurance might not be the right fit. Instead, you likely should have your name added onto their car insurance policy as an added driver, particularly if you live with the car owner.

If you are driving a company car, your employer’s insurance should cover you in the event of an accident, provided you were using the car for business purposes. If you were driving for personal activities, you could be held responsible for any damages incurred during an accident.