Non-owner car insurance is designed for people who need insurance but don’t own a car. It’s affordable and easy to get. Among the many types of car insurance, non-owner car insurance typically costs less than a standard policy because it only covers the driver’s liability in the event of an accident and doesn’t follow a vehicle.
Another good piece of news? Non-owner car insurance doesn’t have a deductible, so you don’t have to pay any money before your policy kicks in when you file a claim. And you can get non-owner car insurance for $325 a year — less than the cost of your cell phone.
- The average cost of a non-owner car insurance policy is $325 per year.
- You might want a non-owner policy if you rent cars frequently, borrow cars or need to maintain continuous insurance coverage.
- State Farm and Geico offer the cheapest non-owner car insurance among major carriers.
What is non-owner car insurance?
Non-owner car insurance can be purchased by high-risk drivers who must buy a liability insurance policy to keep their driver’s license, those who rent cars frequently or those who must maintain continuous coverage.
A non-owner insurance policy costs less than an owner’s policy. The average cost of a non-owner car insurance policy is $325 per year. The low rate is because a car insurance company insuring a non-owner driver’s risk is lower than that of a car owner who drives daily.
However, the premium amount depends upon typical rating factors, such as your driving record and where you live.
Do I need non-owner car insurance?
Here are a few instances when you may want a non-owner insurance policy:
- When you rent a car, the policy serves as primary liability coverage. However, you would still need to buy the collision damage waiver to pay for repairs to the rental car if your credit card company does not automatically do so.
- If you maintain continuous coverage, you avoid a gap in your insurance history that labels you as a high-risk driver, resulting in higher rates when you buy your next car insurance policy.
- If you borrow other people’s cars or use a car-sharing service.
- If you drive a company car for business and personal use.
- As a high-risk driver, a non-owner policy is typically needed to satisfy conditions to receive or reinstate a driver’s license. If you must file an SR-22 or FR-44 with the state – an insurance company’s guarantee that your coverage is current – a non-owner SR-22 insurance policy can satisfy that mandate.
How does non-owner car insurance work?
Non-owner car insurance provides liability coverage, which protects a driver in an accident. You can also purchase medical payments (MedPay) protection, personal injury protection (PIP) and underinsured/uninsured motorist protection (UIM/UM).
Although it is optional insurance coverage, it can be helpful for those who drive occasionally or do not have regular access to a vehicle. Non-owner car insurance is secondary coverage and kicks in if the vehicle owner’s primary coverage isn’t enough to pay for the damages.
Suppose you have a car and are satisfied with your current insurer but must file an SR-22 or FR-44 and your present company does not offer it. In that case, you can purchase a separate non-owner policy with another carrier to meet your filing requirements. The extra cost is typically low because the supplemental non-owner policy isn’t covering your car.
Example: Non-owner car insuranceIf you have an accident while driving someone else’s car and cause damage worth $30,000 and the car owner’s primary coverage pays for $15,000 of the damage up to the policy’s coverage limits, you would be responsible for the rest.
Can you get non-owner car insurance without a car?
You cannot get non-owner car insurance if you have a car. It’s specifically designed for folks who drive but do not own cars. An insurer will require you to meet the following requirements:
- Have a valid driver’s license
- Do not own a vehicle
- Do not have regular access to a car
What does car insurance without a car cover?
Coverage under a non-owner insurance policy includes:
- Bodily injury liability: Bodily injury liability coverage pays for medical expenses and legal fees if you are at fault in an accident that injures other people.
- Property damage liability: Property damage liability coverage pays for repairs or replacement costs if you are at fault in an accident that damages someone else’s property.
Some insurers also offer medical payments and uninsured/underinsured motorist bodily injury coverage. Because a car is not attached to a non-owner policy, you will not be offered the following types of coverage:
- Collision: Collision coverage pays for repairs to your own vehicle if it is damaged in an accident, regardless of who is at fault.
- Comprehensive: Comprehensive coverage pays for damages to your vehicle caused by non-collision events such as theft, vandalism, natural disasters or hitting an animal.
- Rental reimbursement: Rental reimbursement coverage pays for the cost of a rental car while your vehicle is being repaired after a covered accident.
- Towing and labor: Towing and labor coverage pays for the cost of towing your vehicle and certain labor expenses, such as roadside assistance, when your car breaks down.
- Custom parts and equipment coverage: Custom parts and equipment coverage pays for the repair or replacement of aftermarket parts and accessories you’ve added to your vehicle, beyond the standard factory-installed options.
When shouldn’t you buy non-owner auto insurance?
A non-owner personal auto insurance policy isn’t for you if:
- You own a car. In this case, purchase a standard owner’s policy.
- There is a vehicle in your household. You must be listed as a driver on the car owner’s policy. This is especially true if you’re married.
- You drive a car regularly. If you don’t own a car but drive someone else’s vehicle frequently, you should be added to that person’s policy as a driver.
- You are using a vehicle for business use.
- You don’t have a driver’s license and cannot obtain one within 30 days of starting a non-owner policy.
How much does non-owner car insurance cost?
Non-owner car insurance costs $325 a year, on average, based on a CarInsurance.com rate analysis. However, you may pay more or less depending on your driving record, where you live and other factors.
Non-owner car insurance is cheaper than standard insurance, but the costs vary from company to company. According to Jarrett Dunbar, a spokesman for Nationwide, costs tend to range from 10% to 80% of the price you’d pay for a standard auto policy.
“Much depends on how often the customer has access to a car, how that car will be used and what age the operator is,” Dunbar says.
Non-owner car insurance costs in each state
There can be significant cost differences by state and ZIP code. In the table below, you’ll find the average costs for non-owner car insurance by state:
| State | Annual Rates | Monthly Rates |
|---|---|---|
| Alaska | $260 | $22 |
| Alabama | $380 | $32 |
| Arkansas | $266 | $22 |
| Arizona | $396 | $33 |
| California | $299 | $25 |
| Colorado | $282 | $23 |
| Connecticut | $395 | $33 |
| Washington, D.C. | $310 | $26 |
| Delaware | $344 | $29 |
| Florida | $545 | $45 |
| Georgia | $312 | $26 |
| Hawaii | $395 | $33 |
| Iowa | $153 | $13 |
| Idaho | $187 | $16 |
| Illinois | $279 | $23 |
| Indiana | $259 | $22 |
| Kansas | $274 | $23 |
| Kentucky | $375 | $31 |
| Louisiana | $330 | $27 |
| Massachusetts | $445 | $37 |
| Maryland | $438 | $37 |
| Maine | $238 | $20 |
| Michigan | $513 | $43 |
| Minnesota | $302 | $25 |
| Missouri | $358 | $30 |
| Mississippi | $321 | $27 |
| Montana | $299 | $25 |
| North Carolina | $470 | $39 |
| North Dakota | $209 | $17 |
| Nebraska | $186 | $16 |
| New Hampshire | $318 | $26 |
| New Jersey | $459 | $38 |
| New Mexico | $293 | $24 |
| Nevada | $346 | $29 |
| New York | $421 | $35 |
| Ohio | $214 | $18 |
| Oklahoma | $242 | $20 |
| Oregon | $441 | $37 |
| Pennsylvania | $263 | $22 |
| Rhode Island | $518 | $43 |
| South Carolina | $368 | $31 |
| South Dakota | $170 | $14 |
| Tennessee | $363 | $30 |
| Texas | $447 | $37 |
| Utah | $444 | $37 |
| Virginia | $290 | $24 |
| Vermont | $296 | $25 |
| Washington | $349 | $29 |
| Wisconsin | $230 | $19 |
| West Virginia | $367 | $31 |
| Wyoming | $215 | $18 |
Who has the cheapest non-owner car insurance?
State Farm and Geico offer the cheapest non-owner car insurance among major carriers. USAA also provides some of the cheapest rates, but its products are only available for members of the military, veterans and their families.
In the table below, see how carriers compare when it comes to non-owner insurance rates.
| Company | Annual Rates |
|---|---|
| Geico | $333 |
| State Farm | $262 |
| Progressive | $539 |
| Travelers | $338 |
| Nationwide | $490 |
| Farmers | $494 |
| Allstate | $641 |
| USAA* | $177 |
*USAA is only available to military community members and their families.
How do I buy a non-owner car insurance policy?
You apply a non-owner car insurance policy in the same manner as you would for an owner’s policy. Not all auto insurance providers offer non-owner policies because this is considered a non-standard policy.
You can contact local independent agents with access to multiple non-standard carriers or your state’s insurance regulator for consumer information on companies offering non-owner policies.
Suppose you have a non-owner insurance policy and you purchase a vehicle.
In that case, you must inform your insurer immediately to change your policy to an owner’s policy that will cover your new car – or else you’ll be without coverage.
Calculator: Compare car insurance quotes from 25+ companies
Frequently asked questions: Non-owner car insurance
Does non-owner car insurance prevent a lapse in coverage?
Yes – non-owner insurance can help you avoid a lapse in coverage when you frequently drive but don’t yet own a car. A lapse in coverage for a week up to 30 days will hike your car insurance rate by an average of 14%, or about $269 a year. More than 30 days lapse gets you a 22% increase, about $439 more a year.
Does Geico sell non-owner car insurance?
Yes, Geico does offer car insurance coverage for non-owners, as well as many other carriers.
Here is a list of auto insurance companies that offer non-owner coverage:
- State Farm
- Geico
- Allstate
- USAA
- Progressive
- Farmers Insurance
- Nationwide
- Travelers
- Auto-Owners
- American Family
- Kemper Insurance
Does non-owner car insurance cover rental cars?
Yes, non-owner car insurance covers rental cars. If you’re at fault in an accident while driving a rented vehicle, the non-owner insurance policy will cover the driver’s liability up to the policy limit. You can also purchase rental car insurance if you rent cars often.
Resources & Methodology
Methodology
CarInsurance.com gathered non-owner car insurance rates across all the states with the help of Quadrant Information Services. Non-owner insurance rates are based on the profile of a 40-year-old male driver with a good credit score and a clean driving record.
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Laura Longero
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Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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