Non-Owner Car Insurance: What Is It and Who Should Have It?
If you drive but don't have a car, nonowner car insurance will give you liability protection for damage and injuries if you cause a car accident.
A nonowner policy is a cheap way to get auto insurance liability coverage if you rent or borrow a car often, use a car-sharing service or need to file an SR-22 form.
But nonowner insurance isn’t the right choice for people who live with a car owner or should be listed as a driver on the main policy.
Who should get non-owner car insurance?
Get a nonowner policy if you don't have a car and you:
Borrow or rent cars often
Want to avoid a coverage lapse
Need to provide proof of insurance after a DUI or another driving violation
Don't get a nonowner policy if you:
Have your own car
Use the car of someone you live with
Sometimes borrow a friend's car
Sometimes rent a car
What's on this page?
How much does nonowner car insurance cost?
A nonowner car insurance policy costs about $70 per month. Rates from Geico are usually the cheapest, costing an average of $52 per month.
Overall, a nonowner policy is 5% to 15% cheaper than a standard policy with similar coverage. However, the savings can add up to much more when comparing a nonowner policy to a policy with full coverage or insuring an expensive car.
The cost of a nonowner policy varies based on:
- Your coverage limits
- Your driving history
- Where you live
- How often you expect to drive
If you're getting a nonowner policy for an SR-22 form, any DUIs or incidents on your record will still increase your rates. But when you have a flawed driving record, getting a nonowner policy can help you save money.
How to get a cheap nonowner policy
To get a quote for nonowner insurance, you'll need to pick up the phone.
Though most major auto insurance companies offer nonowner policies, you generally can't get a quote online. Even Geico, which is known for its helpful website, requires you to call an agent to get a quote.
Best companies for nonowner car insurance
Company | Phone number | |
|---|---|---|
| State Farm | 1-800-782-8332 |
| Geico | 1-800-207-7847 |
| Progressive | 1-800-671-4405 |
| Nationwide | 1-877-669-6877 |
| The General | 1-866-519-7422 |
How to get nonowners insurance quotes
To get coverage, you'll usually need to provide some basic personal info, including your driver’s license number, and a method of payment, like a credit card.
The best car insurance company for nonowner auto insurance depends on your driving history and personal info, which affect the rates you pay. In addition, some companies do not provide nonowner insurance in certain states.
To find the cheapest rate, call multiple companies and get free car insurance quotes. If you also need an SR-22 or FR-44 form to prove to someone like your state’s DMV that you have car insurance, ask the company if they can file it for you.
Once you’ve bought a nondriver insurance policy, your insurer will usually email you an ID card and mail you a physical card as proof of coverage.
Compare nonowner car insurance quotes
What is nonowner car insurance?
Nonowner car insurance covers your liability for bodily injury and property damage when you are driving a car that's not yours. So, if you cause an accident, your nonowner insurance policy would protect you from lawsuits, just as a standard liability policy would.
A nonowner auto insurance policy can also cover:
- Medical payments or personal injury protection coverage
- Uninsured or underinsured motorist coverage
- Rental car liability coverage
Nonowner insurance, which is also called nondrivers insurance, does not have a car assigned to the policy. That's why it won't have comprehensive or collision coverage, which pays for damage to the car you’re driving.
How does nonowner auto insurance work?
Nonowner car insurance is an individual policy. This means you're the only one who is covered, not your spouse or another driver.
If you have a nonowner policy and are in an accident, the car owner's insurance will typically pay first. That's because insurance coverage follows the vehicle.
Nonowner insurance is generally secondary coverage, used only if the car owner’s primary coverage doesn't cover all of the damages.
For example, let’s say you get into an accident while driving your friend’s car. Their insurance has a $25,000 limit for property damage liability. If you cause $40,000 of damage, you would be responsible for the extra $15,000 in damages. This amount would be covered by your nonowner policy.
Nonowner policies don't have deductibles. So, if you file a claim, you don’t have to pay any money yourself before your coverage kicks in.
Do you need nonowner auto insurance?
You’re not legally required to have auto insurance if you don’t have a car. But you may want nonowner insurance coverage if you:
- Regularly rent vehicles
- Regularly borrow cars from others
- Don't have a car or won’t be driving for an extended period
- Need nonowner SR-22 or FR-44 insurance because of a DUI or serious traffic ticket
1. You regularly rent vehicles.
If you rent cars often, a nonowner policy is usually cheaper in the long run than repeatedly buying rental car insurance.
Insurance from the rental company usually costs at least $20 a day. So if you're renting a car for more than 42 days per year, you would pay less for an annual nonowner policy than the daily rate through the rental company. Just make sure to:
- Confirm that the nonowner policy will cover you in a rental.
- Check if damage to a rental would be covered by your credit card’s rental car insurance. If not, you may want to get a collision damage waiver from the rental company.
Rental car insurance from a credit card won't cover you if someone sues you for damages. This card perk only covers damage to your rental car. Combining your credit card rental insurance with the liability portion of a nonowner policy would provide you with the most comprehensive coverage, besides carrying a policy for a car you own.
2. You regularly borrow cars from others.
If you often borrow cars from friends or other people, nondrivers insurance may also be a good choice. Your policy will give you a certain level of coverage every time you drive. And you won't have to worry whether the car owner’s insurance policy will cover you or if its liability limits will be too low.
Just note that if the car you borrow belongs to someone you live with, or if you borrow the same car regularly, you probably need to be added to the car owner’s insurance policy. Otherwise, your nonowner policy may not cover damages from an accident.
3. You don't have a car or won’t be driving for an extended period.
Nearly every insurer raises rates for a driver who has had a lapse in coverage. A lapse is any length of time when you didn't have insurance. Even if you’ve never driven when you were uninsured, you will likely be considered a higher risk and may not qualify for the best rates.
Because nonowner auto insurance is less expensive than traditional coverage, a nonowner policy is a cheap way to stay covered. And when you have a car again, you'll usually get better rates than if you had a gap in coverage.
Also, if you are in the military and being deployed overseas, a nonowner policy may be the cheapest car insurance policy for you. Some companies, such as USAA and Geico, offer discounts to members of the military who are leaving the country.
4. You need nonowner SR-22 (or FR-44) insurance.
If you have a DUI or had a serious traffic ticket, you may need SR-22 or FR-44 insurance to get your license reinstated.
A nonowner SR-22 policy can help you meet the requirements if you don’t have a car. After getting a policy, the insurance company can file your SR-22 and get you on your way to license reinstatement.
Your car insurance rates will be higher if you need an SR-22, whether you have been caught driving uninsured or got a DUI. But nonowner car insurance is still cheaper than a standard car insurance policy, even if you need an SR-22 form.
Keep in mind that not every insurance company, especially smaller ones, issue SR-22 or FR-44 forms. If yours doesn’t, look for a policy from another company that can file an SR-22 or FR-44 on your behalf.
Who shouldn't get a nonowner policy?
You should not get a nonowner auto insurance policy if you:
- Have a car or live with someone who has a car
- Rarely borrow anyone’s car
- Drive a company car
1. You have a car or live with someone who has a car.
If you have a car, you do not need a nonowner insurance policy. The liability coverage on your car insurance will usually protect you if you borrow or rent a car, but there may be exceptions, so it’s wise to confirm your policy’s details with your insurer.
If you want extra liability protection, an umbrella policy is a better solution than a nonowner policy.
If you don’t have a car, but you sometimes borrow one from a parent, a spouse or another person you live with, you should be added to their auto insurance policy.
Even if you only use the car occasionally, their insurer needs to know that you live together and may require you to be named as a driver. If you don't tell the company, they may deny coverage if you're in an accident.
2. You rarely borrow anyone’s car.
You don't technically need nonowner insurance if you're driving someone else's car with their permission. If you get into an accident, the owner’s insurance will typically be the primary coverage and pay for damages from an accident. But keep in mind that:
- If a claim is made, the car owner may pay more for their insurance, even though you caused the accident.
- If there are more damages than what the owner’s insurance policy covers, you would need to pay any extra costs.
- Not every insurance company covers drivers who are not the car's owner. Make sure to check that you are covered before you take the wheel.
3. You drive a company car.
If you regularly drive a company car (a car your employer owns), how you use the car determines which type of insurance policy is used.
Typically, when the car is being driven for business purposes, damages are paid by your employer or their insurance policy.
However, if you regularly use a company car for personal activities, you’ll likely need a nonowner insurance policy to cover any damage that occurs during personal use.
Frequently asked questions
Can you get car insurance without a car?
Yes, you can buy a nonowner auto insurance policy if you want insurance but do not have a vehicle.
What is nonowner car insurance?
A nonowner policy covers basic liability when you don't have a car. This can give you insurance when using a rental car or car-sharing service. It can also give you more coverage when you're borrowing a friend's car.
Who should get nonowner car insurance?
One of the most common situations is if you don't have a car but often rent cars or drive cars that aren't yours and want to ensure you're protected. Another is if you need a nonowner SR-22 form because of a DUI or another serious driving infraction.
Is nonowner car insurance expensive?
Nonowner car insurance is somewhat cheaper than a regular auto insurance policy. It may cost between 5% and 15% less than a standard policy with similar coverage.
Where can I get nonowner car insurance?
Major insurers — including State Farm, Geico, Progressive and The General — offer nonowner insurance, but you must call each insurance company directly to get a quote.