Last updated: August 2023
Even if you don't own a car, you could still need auto insurance. Sounds crazy, right? Not so fast! Keep reading to learn more, or call one of our friendly agents at 1-877-GO-DIRECT.
What is Non-Owner Car Insurance?
A non-owner car insurance policy provides liability coverage for drivers without cars. A typical non-owner policy will include Bodily Injury Liability and Property Damage Liability, and some insurance companies may also offer Medical Payments coverage and Uninsured/Underinsured Motorist coverage. According to the Texas Department of Insurance, a “non-owner liability policy pays for damages and injuries you cause when driving a borrowed or rented car, but it doesn't pay for your injuries or damage to the car you are driving.”
A non-owner car insurance policy will not include Comprehensive, Collision, Rental Reimbursement, or Towing, since the policy is not attached to a specific vehicle.
If you don’t own a car but frequently use one, take a look at the circumstances below to see if a non-owner policy is right for your situation.
Who Needs Non-Owner Car Insurance?
It is often purchased by higher risk drivers who are required to have liability insurance to reinstate or keep their driver’s license, by drivers who don’t own cars but rent frequently, or by drivers who are in-between cars and want to maintain their insurance coverage. NASDAQ.com breaks down these scenarios as examples for when a non-owner insurance policy might be applicable:
- If you are applying for a driver's license in a state that requires proof of financial responsibility and you do not own a car.
- If you're trying to reinstate your driver's license and are required to file an SR22 or an FR44 with the state and you don't own a car.
- If you often rent cars or regularly drive cars that do not belong to you and are not listed as a driver on the vehicle owner's policy, a non-owner policy would serve as your primary liability coverage.
- If you want to avoid having a gap in your insurance history while you're in-between cars, a non-owner policy could help you maintain a history of continuous coverage and avoid being labeled a “high-risk” driver.
Who Doesn't Need Non-Owner Car Insurance?
A non-owner policy isn’t right for you if:
- You own a car – in which case, you'd purchase a traditional owner policy that complies with your state's minimum financial responsibility requirements.
- You don't have a driver's license and will not be obtaining one within 30-days of starting the non-owners policy.
- There is a vehicle owned by someone in your household. Does your spouse own a vehicle? Your mom, son, or daughter? If there’s a vehicle in your household, you'll usually be required to be listed on the car owner's policy.