Non-owner car insurance

Published on September 12, 2025 | 3 min read

Key takeaways

• Non-owner car insurance offers affordable liability-only coverage to drivers who don’t own a vehicle but occasionally borrow or frequently rent one.
• This type of car insurance can also be used to satisfy an SR-22 or FR-44 requirement after a license suspension.
• It can be strategically used to help you avoid a lapse in coverage—and keep your continuous insurance discount.

What is non-owner car insurance?

Non-owner or no-vehicle car insurance offers affordable liability coverage to people who do not own a vehicle, do not have regular access to a car and have a valid driver’s license. This type of insurance can be purchased for many reasons, ranging from frequent car rentals to occasionally borrowing a car. However, if you live with the owner of the vehicle that you borrow, you must be added to their car insurance policy as a primary driver instead of purchasing a non-owner policy.

Non-owner insurance covers others’ injuries and any damage you cause to their property while you are driving a vehicle that you do not own, up to your policy limits. It does not cover the damage done to the vehicle that you are driving. For cars that you borrow, you will either have to pay for vehicle damages out of pocket or the owner will have to file a claim under their policy. For rentals, you will likely need to purchase a Collision Damage Waiver (CDW) for an extra fee if you want vehicle damage protection.

When do you need non-owner car insurance?

Although having car insurance when you do not own a car may not seem necessary to you, there are circumstances where it may be a good idea.

• You frequently borrow or rent cars
• You need an SR-22/FR-44
• You want to avoid a lapse in coverage

How real-life policyholders are using non-owner car insurance

As we just covered, purchasing non-owner car insurance can be an affordable way to maintain continuous coverage. However, deciding whether to keep coverage or let it lapse is ultimately a financial decision, one that depends on how long you will be without a vehicle and not driving. To explore this further, we turned to the r/Insurance thread on Reddit for advice on how to navigate this choice and to gain a better understanding of why insurers penalize coverage lapses in the first place.

Reddit user review

Long-term vs. short-term strategies

“If you’re getting rid of a car and are pretty certain you won’t be getting another one for at least a few years, it may make more financial sense to let your coverage lapse and deal with premium increases years down the line. You can also ameliorate the worst impact of a lapse by purchasing non-owners coverage for 6 months before you plan to get a car.

For example, you’re moving to a big city and won’t need a car, and you’ll almost certainly be there for 5 years. Better to get rid of your car and let your insurance lapse, and then 6 months before you plan to move out of the city and get a car, take out a non-owner policy. By the time you purchase the new car, you’ll have had 6 months or more of continuous coverage and (likely) won’t have a lapse showing on your profile.”

Reddit User 1*, May, 13, 2025

Posted on Reddit community

Affordability of non-owners insurance

“Absolutely worth it as long as the $110 [six-month premium for non-owners insurance] isn’t the make or break amount for you to be in financial ruin. We regularly see people in the sub that have brief lapses that cost them hundreds, if not thousands of dollars.”

Reddit User 2*, May 13, 2025

Posted on Reddit community

Coverage lapse rate hikes

“To the insurance companies when you have a lapse part of the reason your rates increase is because you are either 1. Losing experience driving or 2. Driving uninsured, both of which are not so great things. The nonowner is pretty inexpensive but will continue to show you’re not losing the experience or driving uninsured”

Reddit User 3*, Mar 3, 2025

Posted on Reddit community

Every situation is different, so consulting with an insurance agent can help you determine if maintaining continuous coverage or letting your coverage lapse is right for your circumstances while you’re without a car and not driving.

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

How to get non-owner car insurance

There are a few steps you can take to find the best non-owner car insurance for you:

• Find the right company. Most insurance companies do not advertise that they offer non-owner insurance, and some do not offer it at all.
• Obtain a quote. Some insurers will not issue a non-owner insurance policy over the phone or online, so you may have to get it in person with a broker or an agent.
• If you have difficulty finding local coverage, try some of the largest national car insurance companies. Larger insurers often offer more varied options and may be able to accommodate a non-owner policy.

After you receive quotes, be sure to carefully compare coverage and pricing options to find the best fit for you.

Cost of non-owner insurance

The cost of non-owner car insurance varies based on a number of factors. Depending on state regulations, these can include your marital status, credit history, age, location and driving record.

With standard auto insurance, those factors plus the value of the car insured are considered. With non-owner car insurance, there is no specific vehicle insured, so the insurance company sets your rate by their estimate of how likely you are to cause an accident and use those factors to help determine the risk level. Generally speaking, this makes non-owner insurance a relatively affordable option.

Frequently asked questions

Do I need car insurance if I have no car?If you very rarely borrow others’ cars or always purchase coverage from the rental car company when renting a vehicle, you might not need auto insurance. However, there are some scenarios where you might need insurance even if you don’t own a vehicle. If you frequently drive someone else’s car, you may need to be added as an insured driver on their policy. If you occasionally borrow other people’s cars, you might want to purchase a non-owner policy if you’re not comfortable with the liability limits they carry on their own policy and want more robust coverage.

Do I need non-owner insurance if I am borrowing a car from a family member?If you find you are frequently borrowing the vehicle, or borrowing it for an extended period of time, you might want to add non-owner coverage. It will help protect you in case of an accident by adding liability coverage, personal injury protection and uninsured motorist coverage.It is important to remember though, that if you are in an accident in your family member’s car, a resulting insurance claim may cause their car insurance rates to increase. You would also need to be prepared to cover any excess costs not covered by their insurance policy.If you live with the family member, you should be added to their policy as a driver.

Can I rent a car with non-owners insurance?Yes. In fact, if you are someone who rents cars frequently, having non-owners car insurance can be a smart move that saves you money. That’s because car rental agencies often require you to pay for liability insurance when renting a vehicle, which can be an expensive add-on. But if you have non-owners insurance, you won’t need to pay the car rental company’s additional fee. Keep in mind that you may still need to purchase separate rental car insurance to cover the cost of damage to the vehicle, though.

My company issues me a company car. Does that mean I should get non-owners insurance?No. Company cars are usually exempt from non-owner insurance. Though it never hurts to ask to be sure, usually, a company vehicle policy covers the car when it’s used for business. If you use the company car all the time, you could add a drive other car endorsement to further financially protect you in case of accidents.

While driving a friend’s car, I got into an accident and totaled it. Does non-owners insurance cover the damage to his car?No, but their car insurance might (assuming they have collision and comprehensive). Non-owner insurance doesn’t provide collision or comprehensive coverage. However, it will help if your friend’s policy is maxed out and the other car is damaged and/or the other party was injured.