Non-owner car insurance: What is it and who needs it?

Non-owner car insurance can help protect you by providing liability coverage (for others' injuries and property damage) if you cause an accident while driving a covered vehicle you don't own.

Purchasing non-owner car insurance can be a good option for frequent car borrowers, as this secondary coverage can help pay for damages above and beyond what might be covered by the car owner's primary insurance.

You don’t own a vehicle, but you plan on getting behind the wheel from time to time. If that’s the case, a non-owner policy can help protect you. Here are some typical scenarios:

• You borrow cars often
  If you plan to drive someone else’s car, you’ll want to have basic liability coverage in place. In fact, depending on where you live, basic liability coverage might be mandatory. Non-owner car insurance helps ensure those requirements are met.

• You’re in between cars
  Let’s say you’re in between cars or you’re not in a financial position to buy a car right now. While you could cancel your previous auto insurance policy, swapping it for a cheaper non-owner car insurance policy keeps you under continuous coverage, helping you avoid lapses in coverage and potentially saving you money in the long run.

• You need to provide proof of insurance
  If your state requires insurance coverage for drivers who don’t own a car but have incurred major violations such as DUI or DWI, a non-owner policy may be an affordable, responsible way to satisfy that requirement.

• You live in the same house as someone who owns a car

  If you live with someone who already owns a vehicle, you won’t be able to purchase named non-owner car insurance to cover that vehicle. The person who owns the vehicle needs to list all members of the household—including you—on their car insurance as secondary drivers.

• You primarily use public transportation

  Buses, trains, taxis, rideshare programs, and even bike rentals can make vehicle ownership unnecessary for many of us. If you use these services most of the time, you likely don’t need a non-owners car insurance policy.

With a non-owners car insurance policy, you meet your state’s minimum insurance requirements for liability insurance, which covers:

• Injuries to others in an accident you cause

  If you’re at fault in a covered accident and motorists in the other vehicle are injured, bodily injury liability helps cover the costs related to their injuries, up to the amounts established on your policy.

• Property damage to others’ vehicles in an accident you cause

  Property damage liability helps pay for damage you cause to another person’s property, including their vehicle, in a covered accident.

• Uninsured/underinsured motorist coverage
  Roughly one in eight U.S. motorists is uninsured,* and even more don’t have sufficient coverage. To help protect you if you’re involved in an accident with one of these drivers, you can add uninsured and underinsured motorists coverages to your non-owners policy. Without these coverages, you could be stuck paying these expenses out of pocket.

• Personal injury protection

  Personal injury protection (PIP) can help pay for medical expenses you and your passengers face following an accident, regardless of who was at fault. Just keep in mind PIP coverage isn’t available in all states.

Non-owner car insurance doesn’t cover damages to the vehicle you’re driving, and it generally doesn’t include coverage for your property or injuries you suffer in an accident.

A non-owner auto insurance policy can be a cheaper alternative to traditional car insurance. Just keep in mind that the cost of your insurance policy depends on several factors, including:

• Your age

• Your ZIP code

• Your driving history

• How much coverage you want to purchase

Your car insurance agent or company can break it all down for you. You can also work with your agent to determine whether you qualify for any money-saving discounts or find additional ways to get cheaper car insurance.

To get a non-owner policy, work with your insurance agent or insurance provider. You typically can’t select this option during the online quote process.

You’ll want to gather some information to prepare for this discussion. Have your driver license and payment method accessible, along with information on your driving history and a general idea of how much coverage you want to purchase.

Questions about non-owner car insurance coverage? Give us a call at 855-450-1630 to speak to one of our knowledgeable agents.

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