Who needs non-owner car insurance?

Access to a car can be life changing, but owning one isn’t always realistic. Many people get around the challenge of car ownership by renting or simply borrowing someone else’s. Still, that leaves the challenge of insuring these drivers. Non-owner car insurance provides a solution to this issue, offering coverage for those who don’t own a car but still find a way to drive.

What is non-owner car insurance?

Non-owner car insurance is technically a liability policy, meaning it covers costs you could be held liable for paying. For example, it may pay for other drivers’ medical bills if you get into an accident while driving a vehicle that is not yours. This helps protect both you and the vehicle’s owner, as they could be held liable for those costs if you did not have a non-owner policy. While liability coverage is their primary purpose, these policies may also include additional protection like uninsured motorist coverage.

It's important to note that not all insurance carriers offer this type of policy. So check with an insurance agent for your options.

When do you need non-owner car insurance?

If you rent cars often, a non-owner car insurance policy may free you from having to buy liability policies from rental agencies. Some form of liability insurance is typically required to rent a car, and a non-owner policy may suffice in most cases.

If you borrow cars often, a non-owner policy may protect you from financial liability for damage you cause while also supplementing the owner’s coverage so they’re better protected.

If you use car sharing services, a non-owner policy may offer more complete coverage compared to the less comprehensive liability policies these services often provide.

If you need an SR-22 form to drive, a non-owner policy can provide you the coverage you’re required to have.

If you want to avoid coverage gaps, non-owner car insurance can help you fill the void between policies. Since policies are attached to vehicles, the space between owning an old vehicle and a new vehicle may be accompanied by a lack of coverage. This gap may raise your insurance rates but can be mitigated by non-owner coverage.

Non-owner car insurance example scenario

Imagine you have a job that requires you to travel a lot, and you regularly visit places where a car is necessary to get around. You don’t have a car at home, but whenever you travel, you’re constantly renting. And because you don’t have your own car, you don’t have a policy to transfer to rental cars.

Without a non-owner car insurance policy, you’ll most likely have to buy a liability policy from the rental agency every single time. This can be costly, and the coverage on these policies may not offer you complete protection. A non-owner policy typically spares you having to purchase these policies every time and may even provide you better coverage.

Coverage options

You have coverage options when choosing your policy. While a non-owner policy typically provides liability coverage, there are several other types of coverage you may be able to add:

• Uninsured driver coverage may help protect you if you get into an accident with a driver who does not have insurance.
• Underinsured driver coverage may help protect you if you get into an accident with a driver who does not have sufficient coverage to pay the costs they’re responsible for.
• Medical payments coverage may help pay for medical costs if you or your passengers are injured in an accident.

Frequently asked questions

When do you not need non-owner auto coverage?

If you borrow a car from someone you live with, or even if you regularly borrow from someone you don’t live with, you may not need a non-owner car insurance policy. In both situations, the owner should list you as a driver in their policy, but it’s always best to ask the car owner and your insurance agent to be sure you’re covered.

Can I insure a car not in my name?

The answer is, it depends. Some insurance carriers allow you to insure a car even if it’s not registered in your name, but this might not be your best option. If the car isn’t yours but you drive it regularly, consider asking the driver to be added to the policy. Alternatively, you can look into what insurance carriers provide a non-owner car insurance policy that provides you liability coverage. Nationwide currently only insures the titled owner of a vehicle.

Can you get car insurance without a car?

If you regularly borrow or rent cars, you can talk to an independent insurance agent about getting a non-owner car insurance policy. This policy can provide you liability coverage while driving vehicles you don’t own.

Can someone else insure my car?

It depends on the insurance carrier. Nationwide currently only insures the titled owner of a vehicle, but other insurance carriers may provide this type of coverage.

• if you’re a teen driver
• if the person insuring your vehicle uses it but is not the primary driver
• or if the car was purchased for you by a family member who also wants to cover the insurance.

It’s important to remember that in any case where insurance is purchased for someone else, it must be done with great care and represented honestly to the insurer.

As always, if you’re not sure what to do in your situation, it’s advisable to talk to an independent insurance agent. Find an independent agent today.