Non-owner car insurance provides liability coverage for drivers who don’t own a car. It’s a good option if you often borrow a friend’s car, drive a business’s car, or rent cars frequently. It’s cheaper than regular liability-only car insurance and much cheaper than standard full-coverage car insurance.1
Most car insurance companies offer non-owner policies, but it’s still important to compare car insurance quotes and companies to ensure you’re getting the best policy.
Here’s what you need to know about non-owner car insurance in Michigan.
Non-owner car insurance is car insurance for drivers without a car. It’s an insurance option for people who don’t own a vehicle but regularly drive someone else’s car. It meets Michigan’s minimum liability car insurance requirements, but it’s typically more limited than a standard liability-only auto insurance policy.
Michigan law requires all drivers to carry a minimum amount of coverage. Non-owner car insurance is one way to meet this requirement, and it makes sense if you don’t own a vehicle. Without car insurance, you can’t legally get behind the wheel.2
If the state suspends your driver’s license, you’ll likely need to carry SR-22 insurance to prove you have coverage. If you don’t own a car, non-owner car insurance is one of the only ways to fulfill this requirement.3
The cost of non-owner car insurance varies based on numerous factors, including your age, location, driving record, and the auto insurance company you choose. There’s no one “best” car insurance company for everyone, as all drivers have unique characteristics and risk profiles.
This makes comparing car insurance companies and quotes crucial to find the best policy. Below are some of the top car insurance companies for non-owner insurance in Michigan.
Non-owner car insurance is essentially liability-only car insurance that’s not tied to a specific car. It meets Michigan’s minimum liability requirements, including both bodily injury liability coverage and property damage liability coverage. Non-owner insurance often includes other coverages like medical payments, personal injury protection, and uninsured motorist coverage.4
Non-owner car insurance doesn’t cover damage to the vehicle you’re driving. It also doesn’t cover most extensions or add-on insurance coverages that can be included in normal policies.
Collision coverage: Collision insurance pays for your vehicle repair costs after an accident with another vehicle or object. It’s not included in a non-owner car insurance policy.
Comprehensive coverage: Comprehensive insurance pays for damages from things other than collisions, such as vandalism, theft, and severe weather. It’s also not included in non-owner car insurance policies.
Add-on coverages: Non-owner car insurance policies typically won’t cover extensions or add-on coverages that you might get with other insurance policies. This includes insurance coverages like roadside assistance, gap insurance, and rental car costs.
Non-owner car insurance only provides liability coverage, meaning it won’t cover vehicle repairs. This makes non-owner auto insurance policies less expensive than a full-coverage policy, which provides coverage for collisions and other things, such as theft and vandalism.
The national average cost of non-owner car insurance is $66 per month, much less than the average costs of regular liability car insurance and full-coverage car insurance, at $142 and $214 per month, respectively.
It’s important to compare car insurance quotes from multiple insurance companies before settling on an auto insurance policy. It’s the best way to ensure you’re getting the best coverage at a reasonable price.
Take a look at these answers to some of the most commonly asked questions about non-owner car insurance in Michigan.
Yes. You can get car insurance on a car you don’t own in Michigan. This type of coverage is called non-owner car insurance, and it provides liability coverage that follows the driver, not the car.
You don’t necessarily need non-owner car insurance to rent a car in Michigan, but you do need some form of liability car insurance before you get behind the wheel. You can opt for non-owner car insurance, but rental companies already offer liability coverage for rental vehicles, so you likely won’t need an additional policy.
Yes. You need car insurance to drive a friend’s car in Michigan. You’ll have coverage under their auto insurance policy through what’s called “permissive use,” but you still need to carry your own insurance to drive legally.2
You can buy non-owner car insurance from just about any car insurance company. Some of the best non-owner car insurance companies in Michigan are Auto-Owners, USAA, and GEICO.
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