What is a non-owner car insurance policy?

Non-owner car insurance covers drivers who don't own a personal vehicle but borrow one more than 10 times in a month. Non-owner car insurance rates are similar to the average personal policy, but you can compare non-owner car insurance quotes online to guarantee you're paying a fair price. Enter your ZIP code below to compare quotes and find the best non-owner car insurance coverage in your state.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 19, 2021

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Here's what you need to know...

  • A non-owners car insurance policy is useful if you often drive cars you don’t own
  • You only want this type of insurance if you drive someone else’s vehicle more than 10 times a month
  • A teen can purchase a non-owners insurance policy with minimum coverage
  • Most insurance companies offer this coverage at a premium that is similar to a regular policy

If you don’t own a car and you want to purchase auto insurance, you can get this coverage by purchasing a non-owners car insurance policy. This type of coverage is beneficial for many reasons that will be discussed below and can ensure that you have the right amount of insurance no matter what vehicle you happen to be driving.

Anyone can purchase a non-owners car insurance policy, but the question is, why should they? The most common answer to that question is that a person frequently drives vehicles that do not belong to them.

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Why purchase a non-owners car insurance policy?


If you travel a great deal or drive a company car on a regular basis, then you may be driving vehicles you don’t own. In both of these cases, having a non-owners car insurance policy can be handy, especially if you cause an accident.

If you are driving a company car, your company’s insurance company will have a policy on that vehicle. If, however, you cause an accident and their insurance doesn’t cover the total cost of damages or medical care, then you can become responsible for that cost, especially if the accident was caused by careless driving.

Having a secondary policy in place can end up saving you a lot of money.

Rental car companies do offer you the choice of purchasing car insurance for your vehicle when you rent it. If you rent vehicles on a regular basis, however, it can be costly. Even if you work for a company that pays for those costs, they might be willing to pay for a non-owners insurance policy instead, as it will save the company money.

If you own your vehicle, then you have to have car insurance for it. Also, many policies cover you no matter what vehicle you are driving, so before you buy non-owners insurance, check with your insurance company to see what they cover when you drive other vehicles.

In a majority of cases, this coverage will not extend to company-owned vehicles. However, it does cover rental cars and borrowed vehicles if you have that coverage in the first place.

If you don’t own your vehicle and you borrow a car from a friend on a regular basis, then having a non-owners car insurance policy is the responsible thing to do. Their insurance policy may or may not cover unlisted drivers on the vehicle, but even if they do, you don’t want to put them in a position where you have an accident and their insurance doesn’t cover all of the costs associated with that accident.

Another consideration is medical care. If you don’t have health insurance and you have an auto accident, your non-owners insurance policy can cover some of your medical costs. This coverage only applies if you specifically purchase personal injury protection (PIP), but it is a great backup option to have just in case, and it is affordable too.

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What about teen drivers?

Many states have laws in place regarding teenagers and driver’s licenses. In North Carolina, for example, before teens can get their driver’s license, they are required to have auto insurance even if they don’t own cars. A non-owners insurance policy is an excellent choice for a teen — or even a young adult — in this situation.

For parents who don’t want to add their teen to their auto insurance policy because they don’t intend to let them drive the family car, this can end up offering big savings regarding insurance costs.

Instead of adding a teen onto a comprehensive insurance policy, for example, the teen can purchase a non-owners policy with minimum coverage so that they can meet state requirements.

Remember that if you let your child regularly drive your vehicle and he/she has an accident, it is very likely that your insurance company won’t pay the costs associated with the accident if they learn your teen is a regular driver and wasn’t listed on your policy.

Thus, there are several situations in which a non-owners insurance policy makes sense.

Should you purchase a non-owners car insurance policy?


Not everyone who rents a car or drives a company vehicle needs non-owners car insurance. You only want this coverage if you drive someone else’s vehicle more than ten times a month.

If you only borrow or rent every once in a while, then you should talk to your current insurance carrier and ask them to include coverage for you on borrowed or rental vehicles if you don’t already have this option on your insurance policy.

If they won’t provide you with that option or they want to increase your rates too much, then you should consider switching insurance companies.

You aren’t obligated to stay with an insurance company simply because you have a six-month or one-year policy with them.

Also, if you find that you are borrowing the same person’s vehicle repeatedly, then you may want to ask them to add you as a driver and agree to partially pay for their insurance costs.

If you don’t think they have enough coverage, you can increase it and pay the difference as well, which ensures that you are financially responsible for the other person’s vehicle.

This option will be much less expensive than purchasing long-term car insurance because you aren’t paying for the entire policy yourself.

Where do I buy a non-owners car insurance policy?


Although this type of policy isn’t as common as others, most insurance companies do offer it as an option and usually at similar premiums as a regular policy. The costs might be higher simply because they have no car associated with the policy to offer discounts for safety features and such.

Most insurance companies only offer liability non-owners auto insurance. If you are looking for more comprehensive coverage, look more extensively for auto insurance companies with this option. If you can’t find one, speak with an independent agent; agents will go out of their way to find the options you need and will tell you if you can purchase those options in your state.

To get the best price on your non-owners car insurance policy, you will need to shop around.

Fortunately for you, this process is much easier than it sounds. By clicking on the link on this page, you will access a free car insurance quote tool that will show you which insurance companies have the best non-owners car insurance rates for you!

Use our online comparison tool to compare FREE car insurance quotes now!


  1. https://www.progressivecommercial.com/coverages/non-owned-vehicle/
  2. https://www.nationwide.com/car-insurance-policy.jsp
  3. https://www.dairylandinsurance.com/auto/Non-Owner-Insurance
  4. https://www.allstate.com/tools-and-resources/car-insurance/personal-injury-protection-insurance.aspx
  5. https://www.thebalance.com/what-is-non-owners-insurance-527421

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