Non-Owner Car Insurance Explained

Posted October 25th, 2018 by Amy Danise

Non-owner car insurance is a way to buy liability insurance if you don't own a car. It's often called "named non-owner" auto insurance. Liability insurance pays for injuries and damage to others if you cause a car accident.

Here are essential things to know about non-owners car insurance

You can't have a car
You generally must not own a car or have regular access to a car (such as a family member's car) in order to buy non-owners insurance.

Includes legal defense
Coverage includes your legal defense if you're sued for causing a car accident.

Does not include collision or comprehensive coverage
Non-owner car insurance generally does not include comprehensive insurance or collision insurance. These pay for damage to the car you're driving.

Doesn't cover belongings
It typically doesn't cover damage to property you have in the car, such as personal belongings.

Might not cover others
It may cover only you, and not your spouse or others in your household. You might be able to extend coverage to a spouse or other family members in your household, depending on the insurer. If not, they'll have to buy separate non-owner policies if they want the coverage.

Doesn't cover business driving
Non-owner insurance likely won't cover you when you're driving a vehicle for business purposes. Business use is a common exclusion.

Sometimes includes medical coverage
Some insurance companies offer non-owners insurance that also has medical payments coverage and uninsured motorist insurance, which pay for injuries to you and your passengers.

Switch policies if you buy a car
If you buy a vehicle, you'll need to contact your insurance agent to switch to a regular personal auto insurance policy.

3 common reasons you might need non-owner car insurance

Three common reasons you might need non-owner car insurance

  1. You rent cars frequently. If you have non-owner auto insurance you won't need to buy liability insurance at the rental counter.
  2. Your state requires you to file an SR-22 (or FR-44) form. Your state might require you to show proof that you have car insurance if you had your driver's license suspended or revoked, have a DUI conviction, were caught driving without insurance or other problems on your driving record. Non-owners SR-22 insurance is a way to get auto insurance without having a car.
  3. You don't want a gap in your auto insurance. Being continuously insured helps you get better car insurance rates. If you don't own a car, a non-owner policy is a way to stay insured until you buy one.

You usually don't need non-owner insurance if:

  • You own a car. In that case you should already have auto insurance on the vehicle.
  • You borrow friends' cars. If you cause a car accident while driving a friend's car, their insurance kicks in first. (But if you have a non-owners policy it could pay out second if your friend's car insurance isn't enough.)
  • You drive a car owned by someone else in your household, like a spouse or parent. In that case, you should be listed on their insurance policy.

Summary: What non-owner insurance covers

Coverage Details
Liability Injuries and property damage of others if you cause a car accident.

Depending on the insurance company, might include:

Uninsured motorists Medical bills for you and your passengers if you're hit by someone with no insurance.
Medical payments coverage (MedPay) Medical bills for you and your passengers no matter who caused the accident, and funeral costs.

Non-owner car insurance cost

We found a variety of pricing methods in our analysis of non-owner insurance state filings. Some insurers use the same rates as liability policies for vehicles that are owned. Others offer a discount for non-owners. We saw rate discounts of 35% and 45% off liability coverage, for example. The only reliable way to know your price is to get quotes.

Where to find non-owner car insurance

Auto insurance companies must file their rates and policies with each state. But they don't always advertise on their websites that they offer non-owner car insurance policies. We looked at companies that made non-owner car insurance filings in four large states to find out who sells it. These lists may not include every company that sells non-owners insurance in a state.

Jump to:

Non-owner car insurance in California
Non-owner car insurance in Florida
Non-owner car insurance in New York
Non-owner car insurance in Texas

Non-owner car insurance in California

21st Century
Aegis Security
Alliance United
Anchor General
Aspire General
ASI Select
California Casualty Indemnity
Century-National Insurance
Cincinnati Insurance
Coast National Insurance
Commerce West
CSAA General Insurance
DB Insurance
Electric Insurance
Equity Insurance
Everest National
Farmers Specialty
First Acceptance
The Hartford
Interinsurance Exchange of the Automobile Club
Kemper Independence
KnightBrook Insurance
Mendota Insurance
Mercury Insurance
MIC General
National American
National General Premier
National Unity Insurance
Nationwide Insurance
Plaza Insurance
Qualitas Insurance
Response Indemnity
Safe Auto Insurance
Safeway Insurance
State Farm
Starr Indemnity & Liability
Stillwater Insurance
Topa Insurance
Transguard Insurance
Viking Insurance Co. of Wisconsin
Western General
Western Home Insurance
Workmen's Auto Insurance
Source: S&P Global Market Intelligence. There may be sellers of non-owner insurance not listed here.

Non-owner car insurance in Florida

Alpha Property and Casualty
Auto Club Insurance Co. of Florida
Berkley Insurance
Farmers Insurance
First Acceptance
Imperial Fire and Casualty
LM General and LM Insurance
MAPFRE Insurance Co. of Florida
Mendota Insurance
Peak Property and Casualty
Permanent General
Safeco Insurance Co. of Illinois
Star Casualty
State Farm
United Automobile Insurance
Source: S&P Global Market Intelligence. There may be sellers of non-owner insurance not listed here.

Non-owner car insurance in New York

Cincinnati Insurance
Erie Insurance
Maidstone Insurance
Main Street America Protection
MAPFRE Insurance
New York Central Mutual
Omni Insurance
Republican-Franklin Insurance
United Farm Family
Unitrin Safeguard
Utica National
Source: S&P Global Market Intelligence. There may be sellers of non-owner insurance not listed here.

Non-owner car insurance in Texas

American Access Casualty
Anchor General
Cincinnati Insurance
CEM Insurance
Clear Blue Insurance
Direct General
First Acceptance
Mercury County Mutual
MGA Insurance
National General
Old American County Mutual
Redpoint County Mutual
Safe Auto Insurance
Texas Farm Bureau
Unitrin County Mutual
Worth Casualty
Source: S&P Global Market Intelligence. There may be sellers of non-owner insurance not listed here.