Best Non-Owner Car Insurance (2025)
State Farm, American Family, and USAA are some of the best companies for non-owner car insurance. This coverage costs about 37% less than typical liability insurance, on average.
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If you drive someone else’s car regularly, you may want to consider purchasing non-owner car insurance. This type of insurance provides liability coverage when you get into an accident while operating a vehicle you don’t own. Whether you need non-owner car insurance depends on a variety of factors, including the car owner’s insurance policy and how often you drive their vehicle.
Many insurance companies offer non-owner policies, so it’s important to compare quotes from multiple insurers to find the best price.
Cheapest non-owner car insurance
The average cost of non-owner car insurance is cheaper than typical car insurance. It’s about 37% less than liability-only insurance and 69% less than full-coverage car insurance, according to Insurify data.
Non-owner car insurance is cheaper because it only covers your liability for injuries and property damage you cause while driving a car you don’t own. These are the average monthly non-owner car insurance quotes for 11 major United States insurers.
Best non-owner car insurance companies
State laws require drivers to have a minimum amount of liability coverage in every state but New Hampshire. The best companies for non-owner car insurance have competitive premiums, good customer satisfaction ratings, and multiple discount options.
Best insurer for discount seekers: American Family
Best insurer for drivers with an incident: State Farm
Best insurer for young drivers: GEICO
Best insurer for the military community: USAA
What non-owner car insurance covers
Non-owner car insurance is an insurance policy that covers the driver, not a specific vehicle. Policies typically meet your state’s minimum coverage requirements, though you can purchase extra protection. Non-owner insurance provides bodily injury and property damage liability coverage when you cause an accident and may also include personal injury protection or uninsured motorist coverage.
What non-owner car insurance doesn’t cover
Non-owner car insurance doesn’t cover damage to the vehicle you’re driving — only your liability for damage you cause to others or their property. The following scenarios outline what non-owner insurance doesn’t cover.
Your rental car is damaged in a collision. Non-owner insurance doesn’t include collision insurance or cover damage to the vehicle, no matter who caused the car accident. You can purchase a collision damage waiver from the rental company for coverage.
A flood damages your friend’s car while you’re driving. Comprehensive coverage reimburses vehicle owners for damage from severe weather. The car owner’s policy would have to cover this type of damage because your non-owner insurance policy won’t include it.
You’re injured when you crash into a tree. Your non-owner insurance will cover any property damage you cause, but it won’t cover your medical expenses unless you’ve purchased personal injury protection. It also won’t cover damage to the vehicle.
When it makes sense to buy a non-owner car insurance policy
Depending on your situation, non-owner car insurance could be a good idea, but it might not always be necessary. Here are some scenarios when it might make sense to buy non-owner coverage.
You borrow vehicles frequently. If you often borrow a friend’s car or drive a family member’s vehicle, it’s a good idea to purchase non-owner insurance coverage.
You often rent vehicles or use car-shares. Non-owner car insurance is also a good option if you often rent cars or use a car-sharing service like Zipcar.
You want additional coverage to protect yourself. If you drive a vehicle you don’t own, you don’t have as much control over the vehicle’s liability policy coverage limits. A non-owner insurance policy can better protect your financial interests.
You have a driver’s license but don’t drive. Even if you have no plans to drive someone else’s car, a non-owner car insurance policy can prevent gaps in your insurance history by letting you maintain continuous coverage. For example, if you get a car in the future and insure it, this continuous coverage will help keep your insurance costs lower than if you weren’t insured before.
When a non-owner car insurance policy doesn’t make sense
Non-owner car insurance isn’t the right coverage in every situation. If you have your own vehicle, you’ll likely need a standard car insurance policy. Here’s when you should consider another option.
Someone in your household has car insurance. If the car you regularly drive belongs to someone you live with, they can name you as an additional insured on their policy.
You don’t have a license. You don’t need any form of insurance if you don’t have a license because you’re not driving. It’s illegal in every state to drive a vehicle without a valid license.
You rarely drive. If you’re only renting or using car-share services once in a while, it may be more cost-effective to buy rental car insurance through the company.
Non-owner car insurance FAQs
If you have more questions about non-owner car insurance, check out Insurify’s guides on liability insurance and how to get car insurance without a driver’s license.
Can you insure a car that’s not in your name?
In theory, it’s sometimes possible to insure a vehicle that’s not in your name. But in practice, it depends on your specific insurer, and not all insurers allow drivers to do so. In most cases, the car’s owner must purchase an insurance policy to register and operate the vehicle. As a non-owner, you can purchase a non-owner insurance policy if you drive the car infrequently.
How much does a non-owner car insurance policy cost?
The average monthly cost of a liability-only policy is $170, Insurify data shows. But your rates may vary based on your unique situation, including your driving history, where you live, and more.
How do you buy non-owner car insurance?
Many online quote processes require a vehicle’s information, so you may have to call an insurance company representative or agent directly to get a quote and purchase a policy. Compare quotes to find the best deal on your ideal coverage.
Do you need car insurance with no car?
The owner of any car you drive should have an insurance policy to cover it. But if you want continuous insurance coverage on your record and additional protection when you borrow someone’s car, you can purchase a non-owner policy.
Do you need car insurance if you don’t own a car but may need to drive one for work?
In most cases, your work’s commercial auto insurance policy should cover employees while driving for work. But if you’re using a work vehicle for a personal errand, the policy may not cover any damages or injuries you cause while driving it. You should check with your employer to make sure that you have the right type of coverage for your situation. If you work as a rideshare driver or delivery driver, you’ll need additional coverage because your personal policy won’t provide the coverage you need.
Which states require non-owner car insurance?
Non-owner car insurance is an optional type of coverage, and no state has specific requirements for it. But some drivers have to purchase non-owner SR-22 insurance if they’re high-risk drivers with multiple or serious violations on their record.
What is a non-owner SR-22?
Non-owner SR-22 insurance is similar to a non-owner insurance policy. It’s for drivers who don’t own a vehicle but still need to file an SR-22 with their state. Drivers with a DUI or other serious violation have to file an SR-22 or FR-44 to prove that they meet the state’s minimum car insurance requirements. An SR-22 isn’t insurance; it’s a form your insurance company files with the state on your behalf. You may need it even if you don’t currently have a car.
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