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Non-Owner Car Insurance 101: Who Needs It and Why?

May 10, 2023

Auto Insurance

Non-Owner Car Insurance 101: Who Needs It and Why?

If you often drive rented vehicles but don’t own one, you should consider investing in non-owner car insurance. Having this coverage can mean the difference between losing and protecting your assets if you’re ever liable for another motorist’s auto accident injuries. Read on to learn more about the importance of carrying third-party liability protection even if you don’t own a car yourself. 

Non-Owner Car Insurance: What is It?

Non-owner auto insurance covers liability exposure for motorists that don’t own a car but often drive rented or borrowed cars. If you cause a car accident, it can pay for damage and injuries to the other motorist. It can also serve as proof of insurance in situations such as SR-22.

How Does Non-Owner Auto Insurance Work?

If you’re at fault for an auto accident while driving a borrowed car, this policy covers the damage or injuries to others. However, the auto liability policy of the owner of the vehicle applies first. Your non-owner car insurance pays for any valid costs beyond the owner’s liability limits.

What Does Non-Owner Car Insurance Cover?

Non-owner auto insurance covers liability costs such as:

  • Third-party bodily injury costs, including medical bills
  • Repairs of damaged third-party property, such as car or fence
  • Your legal defense costs if sued

Also, some policies may include state-required coverages like uninsured motorists or medical payment insurance.

What Is Excluded from Non-Owner Car Insurance?

Non-owner auto insurance doesn’t cover issues such as:

  • Damage to the borrowed car
  • Your injuries/medical expenses
  • Other drivers in your home, such as a spouse
  • Commercial use of borrowed cars
  • Your personal belongings, if lost or damaged in the at-fault auto accident

When Do I Need Non-Owner Auto Insurance?

Consider investing in a non-owner car insurance policy if you:

  • Regularly drive rented/borrowed cars 
  • Want additional liability coverage because you use car-sharing services frequently
  • To close coverage gaps while in-between cars
  • Are required by state law

When Non-Owner Car Insurance is Unnecessary

You don’t need non-owner auto insurance in the circumstances such as:

  • You own a car, so you need standard auto liability coverage
  • You’re listed on your spouse’s or parent’s car insurance 

Estimating Non-Owner Car Insurance Cost

The average premium can vary due to multiple factors, including:

  • The fewer your at-fault car accidents and traffic violations are, the lower the possible costs 
  • Your age (usually, the less your driving experience is, the higher the premiums)
  • Coverage amount (higher policy limits provide more asset/financial protection at a higher cost)

When to Get Non-Owned Car Insurance for Business

Consider purchasing non-owned auto insurance if you allow it, or have your employees use their personal cars for your business-related work. It will offer your staff the extra liability coverage that your commercial auto policy excludes for personal cars.

Cover Your Non-Owned Car with Tompkins Insurance Agencies
Non-owned car insurance provides liability protection for individuals who use borrowed or rented cars frequently. If you are interested in protecting your personal assets with this third-party liability policy, contact us today. At Tompkins Insurance Agencies, we will help you get the best insurance for your non-owned vehicles.

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