Non-Owner Car Insurance: What You Need to Know

hand giving car keys to another hand in front of car non owners insurance

Car insurance provides coverage for car owners. But what if you want to drive a rental car or someone else’s vehicle? Do you need car insurance to drive? 

You need to have a non-owner auto insurance policy. It will save you money, help you avoid a lapse in car insurance coverage, and more. Let’s look at the basics of this type of insurance below.

What is non-owners car insurance?

Non-owner car insurance is a policy for people who do not own a car but drive one from time to time. This type of policy is widely available but not mentioned often. It offers liability coverage.

Who needs it?

You may want or need non-owner car insurance if:

  • You drive other people’s cars frequently.
  • You drive a lot of rental cars for work or on vacation.
  • You need to file a non-owner SR-22 form to get your license reinstated.
  • You use a car-sharing service. 
  • You’re without a car temporarily and want to avoid a lapse in insurance.
  • You need proof of insurance to reinstate or obtain your driver’s license.

What does non-owner car insurance cover?

Non-owner policies cover includes liability coverage – usually, the minimum coverage your state requires for drivers. Liability coverage covers property damage and any injuries you cause to others. However, it does not cover damages to the borrowed or rented car, nor does it cover your own injuries if you cause a crash.

If you are injured in an accident that’s caused by an uninsured driver, non-owner insurance covers you. It also covers your liability if an employee of yours sometimes uses their own vehicle for business purposes. 

happy girl holding car keys standing with car door non owners insurance

Non-owner car insurance does not include comprehensive or collision insurance. This is because you don’t own a vehicle. Additionally, it does not cover you if you borrow a car from someone in your household. In that case, you need to be listed on their insurance policy or young driver’s insurance.

Benefits of non-owner car insurance

  • You protect your risk status as a driver. As a driver with no prior insurance, you are a high risk to many insurance companies. However, a non-owner policy proves financial responsibility as a driver without your own vehicle, and you’ll pay a lower rate when you eventually buy a car.
  • It protects you if you borrow a friend’s car. When you’re driving, accidents can happen, unfortunately. A non-owner policy protects you in case of a collision. If you cause a serious accident while driving your friend’s car and they have a minimum liability policy or the cheapest insurance for young drivers, the non-owner policy will pay excess damages.
  • You can save money when you rent a vehicle. Rental car companies tend to charge quite a bit for coverage. While you’ll still need to buy a collision damage waiver, a non-owners policy will extend liability for the rental car.

A non-owner car insurance policy can protect you for those times when you do not own a vehicle, and it’s incredibly convenient. Be sure to take advantage of this protection for your safety and the safety of other drivers. It’s just smart sense!

Looking to save on California car insurance? Cost-U-Less can help! Get a free car insurance quote online, over the phone, or at one of our offices near you. Don’t wait and start raking in the savings today!