What Is Non-Owner Car Insurance?

Read this article to find out what non-owner car insurance is and how beneficial it can be for you.

It is indeed a necessity in modern times to get everything insured, be it their possession or something they are using for a specific period without any permanence in the picture; getting insured means coming under a protective blanket. Therefore it is necessary to get insured and don’t hesitate while deciding to do so since your safety stems from your protection and your protection solely lies in the insurance.

Even if you don’t own a car but you have a tendency to borrow cars or rent them very often for different purposes which serve a great deal of meaning to your life and profession, you are still in need of car insurance. That insurance that will be utilized here effectively immediately will be liability insurance as it will come in the bigger picture for the sole purpose of protection of your assets which comprise your house as well as your savings.

Therefore, it has to be kept in mind while making important decisions of life to think wisely and think first about the insurance you are getting since the significance remains cardinal of anything that undergoes the process of insurance.

Non-owner car insurance comes into play here as it gives you a guarantee of protection since such protection is something your hard-earned assets warrant without any iota of doubt. Going for non-owner car insurance is for sure an educated choice you and your loved ones can make without any degree of reluctance being present there in the first place.

In addition to giving you a general protective blanket as any other type of insurance coverage, non-owner car insurance also helps you greatly with your issues such as a successful filling of the SR-22 or FR-44 forms if required by the state you live in. When you are out there in-between vehicles then chances are substantial that it is the non-owner car insurance that will come to your rescue and assistance faster than any other resource or mechanism present.

If you don’t want to purchase an expensive auto insurance liability coverage and you have some serious budgetary constraints just like anyone else coping with the frequent economic downturns and financial crises then go for a rather inexpensive option to purchasing the same type of insurance liability coverage. This you can only get with a non-owner liability policy therefore the policy remains of immense significance to anyone out there planning big and wise for their life without any unnecessary interruptions and faulty judgments in between.

Read on to find out all the information that you may need to know about non-owner car insurance. So, what are you waiting for? Without any additional minutes of waiting, let us dive right in!

What is non-owner car insurance?

More than one name

Non-owner insurance is known also commonly as non-drivers insurance since it is a term of great importance therefore it has more than one word in place to be used by everyone in both the insurance sector as well as by individuals belonging to the wider public.

Whenever we see a diversity in the nomenclature of a certain concept or notion then be mindful of the fact that this concept provides greater meaning not just to a particular sector of a nation’s or global economy but the concept also has much weight that has to be taken account of and a value not to be discounted for while embarking on the undertaking of some major life decisions.

What does non-owner car insurance cover?

When you desire liability coverage for an injury to the body or damage to your property while driving a vehicle not actually in your possession then your best support system comes from the non-owner car insurance. Therefore, remember if unfortunately out of blue, once in a blue moon you have to suffer from an accident on a busy avenue of your city and you are the one who gets the accusation of being at fault for the occurrence of an accident then it will be this insurance coverage which will act as your iron shield.

The non-owner car insurance will safeguard you from the potential outburst of lawsuits in the same manner as a normal liability policy.

A non-owner auto insurance policy is also comprised of

Medical Payments which also at times fall under the Personal Injury Protection Coverage: This coverage makes payments to you and your passengers for your medical bills regardless of who had been responsible for the occurrence of a regretful accident in the first place. Medical payments include but are not confined to coverage of visits to a doctor at a certain hospital, surgery costs, cost of x-rays done, prostheses, ambulance charges, medical technician expenditure, professional nursing services as well as health insurance deductibles.

Keep in mind that this type of coverage is optional and is not available in all states. Personal Injury Protection is an inclusive and non-discriminatory type of insurance responsible for a coverage series which also encompasses the replacement of someone who had suffered severe wounds or injuries in a car accident, rehabilitation process being undertaken and successfully executed for the costs, and most importantly in a grief-stricken situation, the funeral costs too.

Rental Car Liability Coverage: Rental Reimbursement is a mechanism that has also proved quite successful with time and over the years due to its ability to put out a help package aimed at coverage of the cost of transportation, whether individual desires to rent a car or to take public transportation, while their vehicle gets some repairs after an insurance claim. This type of coverage does not apply If a person desires to rent a vehicle for its usage during the vacation period or if they have a vehicle which is of a kind that does require routine maintenance work to remain in a stable and moving position then they cannot avail this specific type of coverage.

The rules are very clear on this and the limitations and boundaries cannot be violated in any instance no matter how extenuating the circumstances get. If any individual’s vehicle has got anything to do with a covered insurance claim then only we see an application of rental reimbursement otherwise there isn’t one present in the place.

Uninsured or Underinsured Motorist Liability Insurance: This coverage pays for a person’s medical expenditure if someone crashes into them and if woefully they lack liability insurance or if it is enough for them. The same insurance is also responsible for coverage of accidents as merciless and tragic as hit-and-run accidents which can prove fatal too to someone’s life if they fall prey to such wild mishap on even seemingly widest avenue of their street be it the Sunset Boulevard of LA or the world-famous Times Square of Big Apple.

Caution and a safety net are always a must and that only comes from a package as safe and sound as an Uninsured Motorist Liability Insurance.  If an accident befalls a person where the other driver has to be held guilty for his/her fault and that person does not have any type of available car insurance then the former is in a position where he/she is capable of filing a claim with their own insurance company but that claim can only be filled up to the limit of their uninsured driver coverage.

This implies that there can be benefits but one also to remain cognizant of the demarcations that the process entails.

Roadside Assistance Coverage: covers unwanted car trouble be it you being stranded amid a busy road or pondering over why your car is not working in your garage. Adding this coverage plan to one’s insurance plan has its own set of benefits: including towing, lockout service, extrication, flat tire service, fuel delivery, as well as excellent battery service. Roadside assistance remains an option that may be available in addition to one’s auto insurance policy but this assistance can also be purchased separately in different cases.

Who is supposed to buy non-owner car insurance?

Reinstatement of a driver’s license

A US state be it Ohio or Alaska makes it mandatory for you to go ahead with an important life decision that is to get your most prized asset (as someone who likes being the best man or woman behind the wheels) reinstated and that most cherished asset indeed is the one that chronicles to your driving and your journeys on the busiest of roads city have to offer, the asset is none other than a driver’s license.

Even to get the best of your most valuable assets reinstated, you have to resort to the process of insurance since there is no other way around it, and here is when the non-owner car insurance comes into the best of sight.

When you try to get or to be more formal when you mount an attempt from your end to obtain a license for the first time, there will be an obvious demand from the respective state of yours and that will be to undergo a pivotal process of insurance.

And things don’t stop here as even with your attempts directed towards the restoration of your drivers’ license in the possible aftermath of the annoying yet unfortunate and bitter occurrence of the suspension of your beloved asset than just to demonstrate to the state authorities a proof of your financial responsibility you have to undertake the key task that is insurance.

Frequent user of a car-sharing service

Car-sharing services are often out there for a better purpose of putting out the best offer which entails in itself a certain degree of coverage for those driving the cars. But one cannot stay in staunch denial of the hard reality that is such an offer being at most of the time only being just enough to meet an individual’s minimum requirements which have to be fulfilled in line with the state decrees.

The perils of a person being the principal source of a bad wreck as well as being the primary catalyst behind it remain there with the full vigor of reality. Such a bitter facet of reality acting with its full force can drive the costs high up to the point where they can land in a zone of being capable and strong enough to exceed the minimum limits with ease and without any kind of hindrance on the way, therefore rendering the person concerned here responsible for such drastic change. But there is still a silver lining that the concerned individual can cling to as the main motive would then be to embark on a process of supplementation of the aforementioned coverage through the efficient use of a non-owners policy.

Maintenance of continuous coverage

There is a great amount of risk involved with cars and with your life in particular since it only comes once and once you lose it there is no way you can have it back therefore to proceed ahead in the decision making of life is not a good idea to initiate such a progression without having auto insurance in place.

A progression without auto insurance can truly be deemed in totality a waste and a life that is there in the shadow of fear and dread and not under the bright rays of happiness and optimism. This shadow of fear and dread translates also to the risk you run of being labeled in a certain manner by the insurance companies operating out there as strong are the chances that there will be an escalation of the rates when an individual goes for the purchase of a certain vehicle be it some motorbike or your favorite and latest brand of car.

Therefore it is always handy to keep for yourself a reasonable and fine understanding of the action you may undertake which may lead to a certain kind of reaction not very desirable as higher rates will be the most appalling of repercussions which will have their serious impact being imprinted at a very important stage of your life.

Consequently, it can be said with the complete and utmost assertion that there won’t be higher rates and there can be cheaper rates only if a person intends to buy the non-owner insurance instead of going for skipping coverage in case you don’t have a car in a limited amount of time which translates to a shorter period.

Frequent renting of cars

Non-owner insurance does not have a cost greater than that of liability coverage when it comes to both of them being placed first and then undergoing a comparison and contrast at the rental counter, though still depending on how often you rent and is it enough. Peace of mind can be certainly attained too if there is a growing bothersome concern and ailment in your mind about how you are going to protect yourself in case of an accident that befalls a rental car.

It is not something not probable instead chances are very strong that you may undergo an accident of this kind because you are using a car you are not primarily acquainted with but using it for the first time and still unfamiliar with its workings and functions so caution remains something you need to embrace as much as you can throughout a journey on an unfamiliar vehicle on the wildest roads ( wild with traffic not with animals).

It can also offer peace of mind if you’re worried about getting in a rental car accident (after all, you’re driving an unfamiliar car in an unfamiliar area). Traditionally, one should not expect coverage of damage inflicted on the rental but one has to remain hopeful as that coverage can be realized in real-time with the efficient and economized usage and that too of a credit card no matter which bank or type the card belongs to or was issued by. But you will have to keep in account the issue as well as the expiry date of the card as without these your transactions can simply be deemed invalid and in vain.

The other option here can be you going for a buying of the collision-damage waiver which can be availed with a certain degree of ease only from the rental car company you have in your mind as the best one in your neighborhood or surroundings.

If you borrow someone else’s car

If borrowing someone else’s car is your favorite pastime or out of necessity, then be mindful of the important fact that the car owner’s insurance usually makes a payment for an accident, but to your loss, if costs are greater than liability limits, you won’t find yourself in a desirable position to be in.

For example, you are responsible for an accident that occurred while you were driving Nick’s car, and the other driver named Joe needs $25,000 worth of medical care. If Nick who loaned you the car has only $15,000 of bodily injury liability coverage on the vehicle then to your trouble you will be held responsible for the remaining $10,000 but keep in mind you have a non-owner policy which can ensure coverage of this unfortunate and dastardly expense.

What non-owner car insurance doesn’t cover?

Non-owner car insurance is truly not for you, is not tailored for the purpose your day to day dealings serve if you have in your possession a car be it any particular type of brand old or new, expensive or inexpensive, small or big, good or bad source of investment and returns.

Similarly if at the moment think you are in a sustainable position within a relationship be it a platonic one with your mother or an intimate one with your partner who lives with you in the same house, this implies only one thing and that is your relationship being healthy and comfortable to an extent where borrowing each other’s possessions is not a big deal and is for sure not something that can be a cause of potential mayhem and ruckus.

If you can borrow from your housemates with ease and without any tumult being unleashed by anyone of them then you must know by now that you are in a secure position as now you may not be in the need of non-owner car insurance as your vehicle related secure safety net is already out there so you can transport from one point of Bronx to another or whatever your city is without feeling alarmed or insecure about any repercussions dealing you a heavy hand in your future life endeavors.

Though one thing has to be taken care of and that is even if you borrow in a rare occurrence or two from someone who does not share the same house as you and is not in any relation with you then you can still not be the one who has to go for this type of car insurance.

Also, remember and never forget that your usage of a company car of some kind though only for the sake of business also qualifies you for not having non-owner car insurance therefore in such circumstances you don’t fall under a certain category but rather have a category of your own which is of those who don’t receive coverage from non-owner car insurance.

Temporary non-owner car insurance

It is the type where an individual can get temporary car insurance to drive not his vehicle but instead a vehicle that belongs to someone else. This can only be of use if you are about to embark on a holiday and are willing to share the very act of driving between individuals of various kinds who don’t normally fall under the traditional coverage of this mechanism.  going on holiday and want to share the driving between people who aren’t normally covered.

Things to be kept in mind for practical reasons

Keep in mind, there is no specific vehicle allocation to a non-owner auto insurance policy therefore there won’t be the inclusion of coverage of collision or comprehensive kind. Since there’s no specific vehicle assigned to a non-owner auto insurance policy, it won’t include comprehensive or collision coverage.

Therefore, there won’t be coverage of the damage to the car if you were driving it, and similarly, medical bills and other costs about injuries suffered and sustained in case of a collision won’t get coverage either.

Keep account of a very important fact that the non-owner car insurance is a secondary coverage implying it comes in the picture after payment from a primary coverage.

Notable example

A good example that can be cited here to elaborate further on it can be that when a person named John borrows his friend Greg’s car and causes an accident with that car then Greg’s car insurance pays first but up to the policy limits. In case of exhaustion of the policy’s liability limits, your non-owner car insurance comes into play through its payment mechanism as it does by still confining itself to the policy limits.

Who is offering you non-owner car insurance?

As a customer of the insurance sector, chances are few that you will see a proper advertisement coming out from insurers on whether they are selling non-owner car insurance or not as some car insurers tend to only offer this service to their already existing customers not to new or to potential customers.

Most car insurance companies don’t advertise whether they sell non-owner car insurance and some car insurance companies might only offer non-owner car insurance to existing customers.

Sellers of non-owner car insurance

Get yourself connected to some of the sellers of non-owner car insurance. They may have their coverage USA-wide but may be confined only to a few major states and you may still be required to be an existing customer to cross the eligibility mark for purchasing this particular type of insurance.

Independent auto insurance agent

An independent auto insurance agent will also help you with a better policy search in case you are unable to find yourself the best non-owner car insurance package from any of the insurers listed above.

How much does non-owner car insurance costs?

The research is done on the different domains of the insurance sector, especially on the ones relevant to the topic of this article, one can create an understanding in their mind that how the rates which belong to a non-owner policy can simply be five to fifteen percent less expensive than the one for a standard policy which receives the similar coverage.

But you stand a bright chance of gathering a greater number of savings when you put out a comparison of a non-owner policy with a policy that has full coverage and similarly if you intend to move ahead with insurance of an expensive car. The cost of non-owner car insurance is dependent on factors as various and wide-ranging as driving history, coverage limits, the location of your residence as well as your expectation regarding how often you think you intend to drive on the busiest of roads and highways.


Now that you have read this article in detail, you know about the non-owner car insurance, what are the types, how you can get it, and what are the possibilities and limitations with regards to obtaining it. You also got familiar for the first time with the significance of this insurance type in the wider economic sector of insurance which you are also a significant part of being the valued customer of this part of the national economy.

Now things are clear to you so, what are you waiting for? Go and get that non-owner car insurance now!

Sandra Johnson

Sandra Johnson

Sandra Johnson was a few years out of school and took a job as a life insurance agent in California, selling coverage door-to-door for Prudential. The experience taught her about the technical components of insurance and its benefits for individuals and society, as well as the misunderstandings people often have about insurance. She has over ten years’ experience in the insurance industry, having worked as both a Broker and Underwriter, assisting clients across a broad range of industries. At Insurance Noon, Sarah diligently gathers all the required information and curates up pieces to provide meaningful insurance solutions. Her personal value proposition is to demonstrate a genuine interest in always adding value for clients.Her determined approach to guiding clients has turned her into a platinum adviser to multiple insurers.

Insurance Noon is the world's leading source of insurance related content on the web, focusing on industry news, buying guides, reviews, and much more.