Non-owner car insurance is a good option for those who don’t own a car but frequently drive — for example, because they borrow cars from friends or drive rentals. By shopping around for a non-owners insurance quote, you could save almost $1,000 per year on your policy.
How to Get Cheap Non-Owner Car Insurance
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 don’t own a vehicle but drive often. They may borrow a friend’s car or regularly drive rental cars. Offered by most major insurers, non-owner liability insurance is typically cheaper than regular car insurance. The cheapest widely available insurer is GEICO, where an average non-owner car insurance policy costs $455 per year.
What Is Non-Owner Car Insurance? How Much Does It Cost?
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 non-owner car insurance is $585 per year, compared to roughly $765 per year for regular 50/100/50 liability-only car insurance.
The Coverages You Can Buy With Regular Car Insurance Vs. Non-Owner
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- CoverageRegular Car InsuranceNon-Owner Car Insurance
- Liability insurance✗✗
- Medical payments✗✗
- Personal Injury Protection✗✗
- Uninsured/underinsured motorist✗✗
- Rental car liability✗✗
Who Has the Cheapest Non-Owner Car Insurance Quotes?
When shopping for cheap non-owner car insurance, the national average cost of non-owner car insurance is $585 versus $765 for regular liability-only car insurance. Of course, you might be able to save even more by shopping around to get a non-owners insurance quote.
Per MoneyGeek’s research, the cheapest company for non-owner liability insurance is USAA, with a rate of roughly $252 per year. However, USAA only offers insurance to active and retired military members and their families.
Among those companies with a wider customer base, GEICO (with an average annual rate of $455 per year) and Travelers ($476 per year) offer the most affordable non-owner liability insurance.
The Average Cost of Non-Owner Car Insurance — National
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The Cheapest Non-Owner Car Insurance by State
While cheap non-owner car insurance is possible, rates for non-owner car insurance vary based on location, among other factors. According to MoneyGeek’s research, Maine is the cheapest state for non-owner car insurance, while Michigan is the most expensive state for non-owner liability insurance.
When comparing the policies offered by different car insurance companies, USAA typically is the cheapest in most states. However, it is only available to active and retired military members and their families. For other consumers, the companies that rank as the cheapest in the most states include:
- GEICO — Cheapest in 31 states
- State Farm — Cheapest in 11 states
- Travelers — Cheapest in 4 states
- Nationwide — Cheapest in 3 states
- Farmers — Cheapest in 1 state
- Progressive — Cheapest in 1 state
Non-Owners Insurance by State
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The Cheapest Non-Owner Car Insurance for Drivers with an SR-22
For drivers who have committed a serious driving violation, such as a DUI, you may need proof of insurance, or an SR-22, to get your driver’s license reinstated. If you no longer own a car, a non-owner car insurance policy could provide the car insurance you need.
To help you get cheap non-owner car insurance, the most affordable company for non-owner car insurance if you have received a DUI is USAA, with a rate of roughly $495 per year. However, USAA only offers insurance to active and retired military members and their families.
State Farm (with an average annual rate of $644 per year) and Farmers ($846 per year) rank second and third for most affordable non-owner liability insurance.
The Average National Cost of Non-Owner Car Insurance After a DUI
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- CompanyAverage Annual Premium
- 2.State Farm$664
How to Get Non-Owner Car Insurance
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.
Who Needs Non-Owner Car Insurance? What Does It Cover?
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. 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.
Who Needs Non-Owner Car Insurance?
Those who rent cars often: If you frequently rent cars, non-owner car insurance can offer more affordable coverage than continually purchasing car insurance from the car rental company.
Those who borrow cars from others often: If you routinely borrow your friend or neighbor’s car, this insurance can provide liability coverage in the event you are at fault in an accident.
Those who need to reinstate their license after a suspension: Non-owner car insurance offers an affordable option to get the required coverage you need to have your driver’s license reinstated.
Non-Owner Insurance Is Good If You Regularly Borrow or Rent Cars
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.
Non-Owner Insurance Is Good If You Need Low-Cost Proof of Insurance
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.
When Non-Owner Car Insurance Doesn’t Make Sense
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.
Non-owner car insurance quotes were analyzed for insurance companies throughout the country in hundreds of cities and every state. A company must be available in at least 26 states to qualify to be on this page. The non-owner car insurance policy quoted had limits of:
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $50,000 in property damage liability per accident
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About the Author
- Progressive Casualty Insurance Company. "Do You Need Non-Owner Car Insurance?." Accessed April 15, 2021.