Non-Owner Car insurance: What You Should Know

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Non-Owner Car insurance: What You Should Know | For drivers who often rent or borrow cars, non-owner car insurance provides liability coverage. This coverage protects any assets (house/savings) in jeopardy if an at-fault driver is sued after a crash. Non-Owner Insurance not only protects assets but also helps drivers avoid other predicaments, like “coverage gaps,” and can satisfy a state’s SR-22 (or SR-44) requirements.

When Non-Owner Car Insurance Covers Costs

Non-owner car insurance is secondary coverage. It only activates after any primary coverage has been paid. Starting the process, the car owner’s insurance policy will pay up to the policy limits. Once those liability limits are dissipated, the Non-Owner insurance will then pay up to its policy limits.

What Non-Owner Car Insurance Covers

If an at-fault driver rented or borrowed a car, insurance covers:

  •   Bodily injuries the policyholders cause to others, such as medical expenses within a personal injury claim.
  •   Damages the policyholders cause to others, such as car repair bills or property damage.
  •   A legal defense in case the policyholder is sued for being at fault in an accident claim.

Varying states and insurance companies may offer medical coverage within the non-owner policy.

Uninsured motorist coverage

This coverage pays for policyholders’ medical expenses if someone hits them and doesn’t have liability insurance or enough of it. Uninsured Motorist Coverage may also cover Hit-and-Run Accidents in various states.

Medical payments (MedPay)

Regardless of fault, this coverage pays for any policyholders and their passengers’ medical bills.

What Non-Owner Car Insurance Doesn’t Cover

Non-owner car insurance is designed to safeguard a driver’s basic liability insurance needs. However, there are some exclusions:

Damage To The Vehicle

Collision and comprehensive insurance are not included in non-owner car insurance. This would normally cover car theft, fires, floods, hail, riots, vandalism, collisions with animals, and falling objects. If someone else causes an accident to a car the policyholder is driving, the vehicle’s owner can file a claim under his or her collision and comprehensive insurance, or against the at-fault driver’s liability insurance.


If policyholders only have liability insurance, they won’t be covered for any injuries. Medical coverage may still be an option under various policies.

Other Drivers

Policies only cover the policyholders, not their spouse or any other drivers within their household. Various companies won’t allow drivers to have a non-owner car insurance policy if they have someone at their residence with personal auto insurance. Generally, members of the household should be listed on the personal auto insurance policy.

Commuting for Business

Delivering goods to a client is unlikely to be covered by a non-owner car insurance policy.

Personal Belongings

Lost, damaged, or stolen belongings are not covered under auto insurance, but are instead covered under homeowner’s or renter’s insurance.

Reasons for Drivers to Consider Non-Owner Car Insurance

Renting Cars

Car rental agencies offer drivers the option of buying liability insurance. To avoid paying rental agencies, a driver may want to opt for non-owner insurance instead.

Car-sharing services

Car-sharing services may only provide the minimum liability car insurance requirements. Non-owner insurance can provide more coverage than the service company provides.

Coverage Gap

When drivers are between vehicles and without insurance coverage, it creates a “coverage gap.” Insurance companies consider the gap as a sign of high risk. This leads to higher car insurance premiums the next time drivers buy auto insurance. Non-owner car insurance evades coverage gaps for drivers in between vehicles.

The Law Requires an SR-22 (or FR-44)

DUI convictions, license suspension or revocation, driving without insurance, or other complications may lead to being required to have driver’s insurance. Non-owners SR-22 insurance is an option for auto insurance without owning a car.

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