Non-owner car insurance, on the other hand, is not the best option if you frequently borrow a vehicle from a relative or someone in your household. Instead, you should be listed on the policy of the car owner. This may be required even if the car belongs to an unrelated roommate and you do not currently have a valid license, depending on their insurer and your state.

Can you get car insurance without a car?

Non-owner car insurance, also known as non-owners insurance or non-drivers insurance, provides liability coverage for people who do not own a vehicle but occasionally drive another's. Liability car insurance pays for injuries and property damage caused by you in a car accident. It does not, however, cover any damage to the car you borrowed or rented, nor does it cover any of your own injuries if you cause a collision.

What non-owner car insurance covers

A non-owner car insurance policy typically includes only the coverage types required by your state, though you can often choose limits that are higher than the minimums. In addition to liability coverage, these may include:

• Uninsured/underinsured motorist coverage pays out if you are injured in an accident caused by a driver who does not have enough or any liability insurance.
• Medical payments, also known as personal injury protection, pay for your injuries after a car accident regardless of who is at fault.

Non-owners insurance does not cover collision or comprehensive damage. That coverage in a standard auto policy pays for repairs or replacement of the vehicle you own.

Non-owner auto insurance typically has no deductible.

Who needs non-owner car insurance?

Those who do not own a vehicle may benefit from a non-owner insurance policy in the following circumstances.

An SR-22 or FR-44 form is required.

These forms may be required by your state in order to reinstate your driver's license following a serious conviction, such as a DUI. Insurers file them on your behalf to demonstrate that you have at least the bare minimum of insurance coverage required by the state.

Your state requires insurance to get or reinstate a drivers license

Some states may require insurance to show "proof of financial responsibility" if you are getting a license for the first time or trying to reinstate it after a suspension.

You make frequent use of a car-sharing service.

Car-sharing services like Zipcar and Turo provide some coverage for drivers, but it is frequently insufficient to meet your state's minimum requirements. If you cause a serious accident, the costs could easily exceed the minimum limits, and you would be held liable for them. This coverage can be supplemented with a non-owners policy.

You want to maintain continuous coverage

Going without auto insurance, even between cars, makes you appear risky to insurers, resulting in higher rates when you buy a vehicle. As a result, if you are without a car for a short period of time, it may be cheaper to purchase non-owner insurance than to forego coverage.

You frequently rent cars.

If you rent frequently enough, non-owner insurance may be less expensive than liability coverage at the rental counter. It can also provide peace of mind if you are concerned about being involved in a rental car accident (after all, you are driving an unfamiliar car in an unfamiliar area). It usually does not cover rental car damage, but you may be able to get that coverage through a credit card or by purchasing a collision-damage waiver from the rental car company.

You frequently borrow other people's cars.

The car owner's insurance usually pays out in the event of an accident, but if the costs exceed their liability limits, you'd be on the hook for the rest.

Assume you are at fault in an accident while driving a friend's car, and the other driver requires $35,000 in medical care. If the friend who loaned you the car only has $25,000 in bodily injury liability coverage on the vehicle, you would be liable for the remaining $10,000. That expense may be covered by your non-owner policy.

Who shouldn’t buy non-owner car insurance

In these cases, a non-owners insurance policy is not the best option.

You usually borrow a car from a member of your family.

If the vehicle you most frequently drive belongs to a person with whom you live, you should generally be listed as a covered driver on their car insurance policy rather than obtaining non-owner insurance. This is because, depending on where you live and which company insures the vehicle, coverage may be denied if every member of the household who is of driving age is not listed on the policy.

You drive rarely or not at all

If your driving is limited to renting a car once a year or borrowing a friend's car on occasion, non-owner car insurance may not be worth the cost. It may be less expensive to simply purchase insurance at the rental counter or rely on a friend's insurance policy to cover you if the worst happens.

Having said that, it's always a good idea to double-check your coverage before getting behind the wheel. If you borrow a vehicle from a friend and get into an accident, not all insurance companies will cover the damage.

Where to buy non-owner car insurance

To obtain a quote, you will usually need to contact an insurance company or agent. Non-owner car insurance quotes are rarely available online, and some insurers, such as Progressive, only offer this coverage to existing customers.

We confirmed that the following companies provide non-owner car insurance (or named non-owner insurance, as some call it), but not all of them provide information online. Finding an agent or calling the company directly is the best way to obtain a policy.

State Farm offers a personal mobility policy for California residents who do not own their own vehicles in addition to its standard non-owner insurance. The policy includes liability coverage, uninsured motorist coverage, comprehensive and collision coverage, and emergency roadside assistance. You are covered under this policy not only when driving a borrowed car, but also when bicycling or riding as a passenger in a rideshare vehicle.

How much is non-owner car insurance?

A non-owner car insurance policy is typically less expensive than the same level of liability coverage for a car you own. However, if you require the insurer to file an SR-22 or FR-44, the costs for any policy will most likely be high until you no longer require it.

The cost is determined by your age, driving record, and how frequently you intend to drive, among other factors. Find out more about the factors that influence car insurance rates.