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What Is Non-Owner Car Insurance?
Non-owner car insurance provides liability insurance for occasional drivers who don’t own a car. Not all auto insurance carriers offer this product, but we’ve found some good car insurance companies that offer this kind of insurance.
To help you make a decision, we’ve turned to our own SimpleScore for guidance. We arrive at our scores by analyzing discounts, coverage options, customer satisfaction, support and accessibility.
We’ve also studied such impartial reviewers as J.D. Power, which rates auto insurance companies for customer satisfaction and claims satisfaction, as well as Consumer Reports, which looks at claims satisfaction, premiums satisfaction, policy review and service.
The best non-owner car insurance providers of 2021
- Great for Discounts: Geico
- Great for Customer Satisfaction: State Farm
- Great for Poor Credit: Nationwide
- Great for Safe Driving: Farmers
- Great for Claims: Allstate
- Great for Online Resources: Progressive
What does non-owner car insurance include?
A non-owner car insurance policy, sometimes also called non-drivers insurance or liability coverage, usually only provides a few coverage options.
These policies usually include:
- Bodily injury liability: coverage if someone else gets hurt in an accident you cause
- Property damage liability: coverage if you damage someone else’s car or property
When you are involved in a car accident, there are several scenarios in which your non-owners car insurance might apply:
- If you borrow someone’s car and are involved in an accident, the vehicle owner’s car insurance pays out first. If it’s not enough to cover damages, your non-owner policy may kick in as secondary coverage.
- If you cause an accident and the other person is injured, the bodily injury liability portion of your insurance may help cover their medical expenses, lost wages and some of your legal fees.
- The property damage portion may help you pay for the damage to someone’s vehicle or property if you were at fault for the accident.
- Some insurers also offer medical payments coverage, uninsured/underinsured motorist bodily injury coverage and/or rental car coverage as part of a non-owners policy.
Non-owner car insurance applies to you, specifically. It doesn’t travel with the car for which you bought the policy, nor does it extend to any other people.
What is an SR-22?
An SR-22 form, sometimes incorrectly called SR-22 insurance, is often required for driving privileges to be reinstated after specific traffic-related offenses. Your state may require this even if you don’t own a car, according to Progressive. A non-owner auto policy may fulfill that requirement for carrying insurance when you have to submit an SR-22 form, says Progressive.
Who needs non-owner car insurance?
Typically, you’re not legally obligated to have car insurance (including non-owner) if you don’t have a car.
However, there are a number of reasons why your agent may recommend non-owners auto insurance.
- You rent cars regularly: A non-owner policy that offers liability coverage on rental vehicles might be recommended, but make sure it covers you when you’re driving one.
- You borrow cars regularly: If you’re a caregiver, for example, non-owner insurance might supplement their personal policy if you get in an accident. If you’re borrowing a car from someone in your household, it might be recommended that you be listed on their policy –– not on a non-owner policy.
- You use a car-sharing service: If you’re enrolled in a car-sharing service like Car2Go, Zipcar or Maven, you’ll typically get some liability and damage coverage as part of your membership. But in some cases, it may be recommended that you get non-owners coverage.
- You’re required by a court: If you’ve committed serious traffic violations, a court may require you to file a proof-of-insurance certificate to maintain your driver’s license, even if you don’t own a car.
- You use ridesharing companies: If you like to use Lyft and Uber and you don’t own a car, it may be recommended that you get non-owner car insurance that may include uninsured motorist coverage or personal injury protection.
The cost of non-owner coverage
Progressive reports that non-owner car insurance typically costs less than what you’d pay for the same level of liability coverage on a car you own. However, Progressive says that may vary depending on your driving history, where you live, coverage limits and other factors. Also, keep in mind that any infractions on your record may impact the cost, according to the carrier.
What does non-owner car insurance not cover?
What this coverage includes depends on which company you get insurance from. Non-owner car insurance typically does not cover:
- Collision insurance
- Comprehensive insurance
- Towing insurance
- Rental reimbursement
Auto insurance discounts
Traditional auto insurance often comes with perks if you fulfill certain criteria and the same might go for non-owner car insurance. The following are some of the discounts you might be eligible for when purchasing the best non-owner car insurance.
- Multi-policy: When you combine two or more insurance policies from the same insurer, you might become eligible for attractive discounts.
- Driver’s education course: Some providers may reward you with discounts.
- Military or federal employee: If you or an immediate family member is part of the government services or armed forces, you might be eligible for reduced rates. This is called an affinity discount.
We welcome your feedback on this article and would love to hear about your experience with the non-owner car insurers we recommend. Contact us at firstname.lastname@example.org with comments or questions.