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

What is non-owner car insurance?

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-owners 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.

Who needs non-owner car 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. Learn more about what happens when you get a DUI/DWI and what to do if you need to get an SR22 or an FR44 in Florida or Virginia.

Who doesn’t need non-owners car insurance?

• 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.

What non-owners car insurance covers

Required coverages for your state

With a non-owners car insurance policy, you meet your state’s minimum 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.

Optional non-owners coverage

• 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 (PIP)
  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.

What non-owners auto insurance doesn’t cover

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.