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

A non-owner policy is typically secondary coverage, which means it may help pay for covered costs after the vehicle owner’s primary insurance applies.

For example, if you cause an accident while driving a covered vehicle you don’t own, non-owner liability coverage may help pay for the other driver’s injuries or property damage, up to your policy limits. It generally won’t cover damage to the vehicle you’re driving.

When you don’t own a car but still need coverage, clear answers matter. Dairyland^® can help you understand your options, confirm availability in your state, and choose coverage limits that fit your situation.

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 occasionally borrow a car
  If you drive someone else’s car from time to time and don’t have regular access to it, a non-owner policy may help you meet liability coverage requirements, depending on your state and policy.

• 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-owner car insurance policy.

Depending on where you live, a non-owner car insurance policy may help 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
  More than one in seven U.S. drivers were uninsured in 2023, and even more were underinsured.* To help protect you if you’re involved in an accident with one of these drivers, you may be able to add uninsured and underinsured motorist coverages to your non-owner policy. *Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023.

• 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 cheap car insurance 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.

Before you call, it helps to have:

• Your driver’s license

• Your payment method

• Information about your driving history

• A general idea of the coverage limits you want

• Any SR-22 or FR-44 filing information, if required

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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