Non-owner car insurance—also called non-drivers car insurance—may be a little-known coverage option, but for some people, it’s exactly what they need—without overpaying or driving under-insured.
Who needs it
Candidates for non-owner car insurance include people who regularly rent vehicles or drive other peoples’ cars (to get to shared locations, or as part of a job like a nanny or personal assistant); anyone trying to reinstate or restore a driver’s license after a suspension; someone who frequently uses a car-sharing service like Zipcar or Turo; a person who wants to maintain continuous coverage between owning cars.
This type of insurance isn’t meant for you if the car you’re borrowing belongs to a relative or someone in your home—this is because you should already be listed on the car owner’s policy. This might be required in your state even if the car belongs to an unrelated housemate or roommate and even if you don’t have a valid driver’s license.
What it pays for
Non-owner car insurance provides liability coverage, which pays for injuries and property damage you cause to others in a car accident. It doesn’t cover damage done to the car you’ve borrowed or rented, bills associated with your own injuries if you're at fault for an accident, towing reimbursement, nor rental reimbursement. However, you may be able to select additional coverage, like personal injury protection and uninsured/underinsured motorist protection.
In the case of an accident, non-owner’s car insurance usually comes into play as a secondary coverage if the car owner's insurance falls short in paying for the repair and medical bills. Because non-owner’s insurance doesn’t include collision or comprehensive insurance (there are exceptions in some states), there’s typically no deductible.
Where to buy non-owner car insurance
Many large, national insurance companies offer non-owner car insurance policies, although they may not advertise them. The price of a quote will depend on your age, driving record, how often you drive, the amount of liability coverage you want, and even geographical location, among other variables.
Non-owner auto insurance often costs 5% to 15% less than a standard policy. This will usually be less expensive than policies covering a vehicle.