Car insurance for non-owners | What you need to know

Don’t have a car? You may still need to own an auto insurance policy. This type of coverage, called non-owner auto insurance, can be a good idea and, in some states and circumstances, may be required.

Owner’s car insurance is a unique policy for people who don’t own a car. It provides liability coverage when you drive or rent someone else’s car. Liability insurance pays if you are at fault for causing property damage or injury to others.

What non-owner auto insurance covers

• Liability coverage – If you have a non-owner car insurance policy, you will be covered in the event of property damage or injury to others and you are the driver at fault.
• Uninsured coverage – Uninsured Driver Coverage Option Pays medical costs for you and your passengers if the other driver’s accident is at fault but is uninsured or uninsured.
• Uninsured driver’s property coverage – This is an additional option that pays for damage to your car or other property if the other driver is at fault but is uninsured or uninsured.

Why you might want non-owner auto insurance

In certain circumstances, it’s a good idea to have a non-owner auto insurance policy — and it may even be required.

1. You drive other people’s cars.

Although car owner’s insurance usually covers the costs, if the costs exceed the policy limits, you may have to make up the difference. Paying extra from non-owner car insurance can come in handy. If you drive cars that are owned by people you live with, you should be included in their policies, in which case you don’t need non-owner coverage.

2. You rent cars often.

Paying for non-owner insurance can actually cost less than paying extra for the liability coverage that the rental car company sells. The downside is that car insurance for non-owners does not, as a rule, cover damage to the car, only the other driver’s car or injuries. Optional solutions include carrying a credit card that covers damage to a rental car, or purchasing a collision damage waiver sold by the rental company.

3. You have a DUI on your record.

When you have a DUI or other serious offense on your driving record, you may be required to file with your state to have your license reinstated. The forms you fill out require proof of insurance. If you have a non-owner auto insurance policy, you meet this requirement.

Not all insurance providers offer non-owner policies, so you’ll need to ask. Do you want to know more about car insurance? Check out the EInsurance auto insurance webpage.