🔑 Does non-owner insurance cover rental cars?

Yes and no. It covers your liability if you cause an accident (other people's injuries and property damage). But it doesn't cover damage to the rental car itself. For that, you'll need the rental company's CDW or a credit card with rental car coverage.

🏠 Can I get non-owner insurance if I live with someone who owns a car?

Usually not. Most insurers won't sell you a non-owner policy if there's a car in your household. Instead, you should be added to that person's policy as a listed driver.

📊 Does non-owner insurance help my insurance history?

Yes! One of the best reasons to get non-owner insurance is to maintain continuous coverage. A gap in your insurance history can raise your rates when you buy a car.

📄 Can I get non-owner insurance with an SR-22?

Absolutely. If you need to file an SR-22 but don't own a car, a non-owner SR-22 policy is exactly what you need.

🚘 What happens when I buy a car?

Contact your insurer immediately and switch from a non-owner policy to a regular policy. Non-owner coverage doesn't protect a car you own – you'll need collision and comprehensive coverage for that, plus liability insurance.

Non-Owner Car Insurance: What It Is and Who Needs It

Non-Owner Car Insurance: What It Is and Who Needs It

Here’s something many people may not realize: You can get car insurance even if you don’t own a car. It’s called non-owner car insurance, and it’s designed for people who drive regularly but don’t have a car of their own.

Maybe you borrow your friend’s car a lot, or you rent cars frequently. Whatever the reason, non-owner insurance gives you liability coverage without needing to own a car.

Jerry has helped 435 drivers get non-owner car insurance in the past year. Here’s what to know about non-owner car insurance, and how to determine if it’s right for you.

Jerry pulls up to 20 quotes from top rated carriers.

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What is non-owner car insurance?

Non-owner car insurance is essentially liability insurance for people who drive but don’t own a car. It financially protects you if you cause an accident while driving someone else’s car and pays for others’ medical bills and property damage.

The key thing to know: it’s secondary coverage. This means that if you borrow a friend’s car and get into an accident, their insurance pays first. Your non-owner policy only kicks in if damages exceed your friend’s liability limits.

Key takeaway: Non-owner car insurance provides liability coverage when you drive cars you don’t own. It’s secondary coverage, meaning the car owner’s insurance pays first, and yours kicks in only if damages exceed their limits.

What does non-owner insurance cover?

Non-owner insurance usually only covers what liability insurance does*, and has some important coverage gaps to know about.

Covers	Won’t cover
Other people’s medical bills.	Damage to the car you’re driving.
Other people’s property damage.	Your own injuries.
	Damages you cause in a car owned by someone you live with.
	Ridesharing.

*Depending on your state’s minimum requirements, a non-owner policy could also include uninsured motorist coverage, medical payments coverage and/or personal injury protection (PIP).

Key takeaway: Non-owner insurance covers others’ medical bills and property damage – but won’t cover damage to the car you’re driving, your own injuries, household members’ cars or ridesharing.

Who needs non-owner car insurance?

Non-owner insurance isn’t for everyone. Here’s when it actually makes sense.

Consider non-owner insurance if you:

Rent or borrow cars frequently.
Sold your car and won’t buy another anytime soon.
Want to avoid an insurance lapse.
Need an SR-22.

You likely don’t need it if you:

Live with someone who owns a car.
Rarely drive or use public transportation.
Own a car.

Key takeaway: Non-owner insurance makes sense if you rent or borrow cars often, are between cars or need an SR-22. You can skip it if you own a car, live with someone who does, or rarely drive.

Get non-owner car insurance with Jerry

Not every insurance company offers non-owner policies, so shopping for one can be tedious. Jerry makes it easy.

Simply answer a few questions and Jerry will search to find you non-owner coverage in minutes. No long forms, no phone calls and no digging through websites to figure out which companies offer what you need.

Skip the hassle. Jerry finds competitive quotes in minutes.

How much does non-owner car insurance cost?

Non-owner insurance is typically cheaper than regular car insurance. Since there’s no car to insure (and you’re presumably driving less), the risk is lower.

Jerry customers pay an average of $110 per month for non-owner car insurance.

Your own rate will depend on:

🚦 Your driving record. Good drivers with a clean record typically pay less than those with accidents, tickets or DUIs on their record.

📍 Where you live. Rates vary a lot by state and zip code.

📊 Coverage limits. Higher limits mean a higher premium.

📄 SR-22 requirement. If you need an SR-22, expect to pay more.

🎂 Your age. Younger drivers typically pay more.

Key takeaway: Non-owner insurance is normally cheaper than regular coverage. Your rate depends on your driving record, location, coverage limits, SR-22 status and age.

How non-owner insurance works for rental cars

Non-owner insurance covers liability, meaning injuries and property damage you cause to others if you’re at fault in an accident. It doesn’t cover damage to the rental car itself.

To cover damage to your rental car, you’ll need:

💳 A credit card that includes rental car coverage.

🔑 The rental company’s Collision Damage Waiver (CDW).

Key takeaway: Non-owner insurance covers liability in rental cars but won’t pay for damage to the car itself. For that, use a credit card with rental coverage or buy the rental company’s coverage.

Learn more: How rental car insurance works

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faq

🛡️ What is non-owner car insurance?

It’s liability insurance for people who drive but don’t own a car. It covers injuries and property damage you cause to others while driving a borrowed or rented vehicle. In states that require more than liability insurance, it often also provides uninsured motorist coverage, and medical payments coverage or PIP.
🔑 Does non-owner insurance cover rental cars?

Yes and no. It covers your liability if you cause an accident (other people’s injuries and property damage). But it doesn’t cover damage to the rental car itself. For that, you’ll need the rental company’s CDW or a credit card with rental car coverage.
🏠 Can I get non-owner insurance if I live with someone who owns a car?

Usually not. Most insurers won’t sell you a non-owner policy if there’s a car in your household. Instead, you should be added to that person’s policy as a listed driver.
📊 Does non-owner insurance help my insurance history?

Yes! One of the best reasons to get non-owner insurance is to maintain continuous coverage. A gap in your insurance history can raise your rates when you buy a car.
📄 Can I get non-owner insurance with an SR-22?

Absolutely. If you need to file an SR-22 but don’t own a car, a non-owner SR-22 policy is exactly what you need.
🚘 What happens when I buy a car?

Contact your insurer immediately and switch from a non-owner policy to a regular policy. Non-owner coverage doesn’t protect a car you own – you’ll need collision and comprehensive coverage for that, plus liability insurance.

Methodology

Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.

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Our experts

Ben Moore

Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.

Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.

^†Over the past 12 months, 25% of drivers who switched with Jerry paid $89 or less per month. Not all customers find savings. Savings depend on state, policy features, coverage, driving history and other factors.

Editorial Note: This article was written by a paid member of Jerry’s editorial team. Statements in this article do not constitute advice or recommendations. You should consult with an insurance professional about your specific circumstances and needs before making any insurance decisions.