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What is Non-Owners Insurance?

Coverage When You Do Not Own a Vehicle


A non-owner auto insurance policy covers you for liability when you do not own a vehicle. It is purchased per driver, so multiple drivers are not covered under one policy. Most non-owner auto insurance policies do not provide coverage for medical or any physical damage, however it is possible to find medical coverage depending on the carrier.

Reasons to Purchase a Non-Owner Auto Insurance Policy
  • Protection for liability is important even if you do not own a vehicle.
    Example: A lot of things can go wrong while driving. A non-owner auto insurance policy would protect you if you do not own a vehicle and you borrow a friend's vehicle. If your friend had minimum liability on a vehicle and you caused a severe accident, the injured party could go after you personally for pain and suffering if the damages are more than your friend's limits. A non-owner auto insurance policy would kick in and pay the excess damages.

  • Covers a rental car
    Example: Rental companies charge a lot for their insurance coverage. If you frequently rent cars but do not own a car, a non-owner auto insurance policy will most likely save you money. You will still need to purchase the collision damage waiver to waive any responsibility for physical damage, but in general the non-owner auto policy will extend liability. As with most insurance coverage, rules can vary by state and insurance carrier but typically a non-owner policy will cover liability for a rental car.

  • Keep your preferred driver risk status
    Example: A great reason to purchase a non-owner policy is to driver risk status. Many insurance companies consider drivers with no prior insurance high risk. A non-owner auto policy would prove you had financial responsibility as a driver without an owned vehicle.
Non-Owner Policies do NOT Cover:
  • Physical Damage
    A non-owner policy never covers physical damage on any vehicle.

  • A Vehicle You Own
    Do not forget to convert your non-owner auto insurance policy into a traditional auto policy once you own a vehicle. Non-owner auto insurance will not cover a vehicle you own.

  • A Vehicle Owned by Resident of Your Household
    If someone owns a vehicle in your household, you should be listed as a driver on their insurance policy as long you do not own your own vehicle. A non-owner auto policy will not cover a vehicle you regularly access.

Non-owner auto insurance policies are available everywhere but do not get talked about very often. Many people have never heard of auto policy for a person who does not own a vehicle. It is always recommended to avoid a lapse in car insurance coverage if at all possible. A non-owner auto insurance policy can protect you for those times when you do not own a vehicle.

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