- Non-owner car insurance is insurance for drivers who do not own a car.
- It's best for people who borrow cars from friends or family who live in separate households.
- If you don't own a car but drive a car owned by someone living with you, non-owner car insurance is not for you.
- You cannot get online quotes for non-owner car insurance. You will have to call insurance companies to see if they provide coverage in your state.
- See Business Insider's picks for the best cheap car insurance companies.
If you do not own a car, but frequently rent or borrow cars from a friend or relative, you should have non-owner car insurance. If you are going to have a break between getting rid of one car and buying another, non-owner car insurance helps you avoid a lapse in coverage that can cause higher premiums.
Non-owner car insurance is for drivers who do not own a car. However, if the car you frequently borrow or use is owned by someone you live with, you should not get non-owner car insurance. Instead, you should be listed on the owner's car insurance policy.
What is non-owner car insurance?
Non-owner car insurance is basically liability-only coverage for drivers who don't own a car. It acts as secondary coverage when the owner's insurance won't cover or doesn't cover all the bills. Because there is no comprehensive or collision coverage, it doesn't cover damage to the car you are driving, but it does cover damage to the other vehicle.
For example, imagine you're driving a friend's car and are rear-ended, causing you to hit the car in front of you. A claim will be filed against your friend's car insurance provider for damage to the car you hit. Your non-owner car insurance will kick in to cover what isn't covered by your friend's insurance, depending on your coverage limits.
Who needs non-owner car insurance?
Non-owner car insurance is for drivers who:
- Do not own a car, but borrow or rent vehicles from outside their household
- Are getting rid of their car, and will be without their own car but will drive before getting a new one
However, if you regularly borrow the car from someone who lives with you, you do not need non-owner car insurance. Instead, you should be on that person's insurance policy as an additional user.
What is non-owner SR-22 insurance?
SR-22 is not insurance, but proof of insurance. If you've had your license suspended, you may need SR-22. If you don't own a car and need SR-22, then you can get non-owner SR-22 car insurance.
According to Dairyland Insurance, you may need SR-22 insurance if one or more of the following is in your driving history, or if your state requires it for another reason:
- DUI or DWI
- Reckless driving
- At-fault accidents
- Driving without insurance coverage
- Driving with a suspended license
How much does non-owner car insurance cost?
Since non-owner car insurance isn't offered as commonly as regular car insurance, companies offering non-owner insurance do not offer online quotes. Some companies only offer non-owner car insurance in certain states. If you are trying to purchase non-owner car insurance, you will have to comparison shop the old school way: calling each provider and asking about rates.
Because online quotes aren't available and because coverage cost varies by person, it's hard to estimate how much a policy may cost. Dairyland Insurance offers non-owner car insurance, and writes on its website that non-owner coverage is cheap compared to regular insurance, and it usually doesn't carry a deductible.
That doesn't mean its estimates are published online. Note that even though it advertises online that it offers non-owner car insurance, the company still requires you to call its 800 number to get a quote.