Non-Owner Car Insurance 101: Coverage You Might Need Even If You Don’t Own a Vehicle

Most people know they must purchase auto insurance when buying a vehicle. However, fewer understand that coverage might still be important if you don’t own a car. Non-owner car insurance is designed for those who frequently buy, rent, or share cars and want extra protection. Here’s the basic info you need on what it covers and when you might want to purchase a policy.


What does non-owner car insurance offer?


This coverage generally consists of basic liability insurance but may also feature some add-on coverage. The standard policy will cover medical bills if you’re at fault in an accident and others get injured and any damage you may do to another person’s property.


This insurance typically doesn’t cover your injuries or damage to the car you’re driving. Although, you might have the option to add uninsured/underinsured motorist coverage and personal injury protection.


Also, note that carriers typically set the limits for non-owner car insurance at the state-required minimum for auto insurance policies. So, depending on your limit, you may want to purchase more coverage.


When should you consider non-owner car insurance?


This coverage can be useful if you…


Frequently rent cars or use a car-sharing service: State laws often require rental and car-sharing companies to provide minimum coverage—but that’s the issue. It’s minimum coverage. You can purchase more when you sign up, but that can get expensive. If you want more than state minimum insurance, your non-owner car insurance policy could be a more affordable option.


Borrow from friends and family: When you borrow a car, the owner’s insurance will cover your accidents—as long as you have the owner’s permission to drive the vehicle. However, you could still be on the hook if accident-related expenses exceed the policy limits. In that case, this insurance could come in handy.


Note: You probably don’t need a non-owner policy if you borrow a car from someone in your household since they can name you as a driver on their insurance. Plus, many carriers won’t insure you if you live with someone who owns a vehicle.  


Are shopping for a new car: Sometimes, insurance carriers will flag a gap in a customer’s insurance history. So, to avoid that, you might want to purchase a non-owner policy when you’re between vehicles.


Drive a company car: Always check your employer’s insurance policy before driving a company car. It might not protect non-owner drivers or only cover office hours. So, if you often work late, consider purchasing a  policy for complete protection.


If you need non-owner car insurance, Hibbs agents are happy to help you find the right policy. Call today.