Best Cheap Non-Owner Car Insurance Companies

When it comes to finding the best cheap non-owner car insurance, Geico stands out as the top choice. If you’re looking for the cheapest overall policy, State Farm is your best bet. And for those needing an SR-22, Auto-Owners Insurance offers the most affordable rates.

With over 15 years of experience in the insurance industry, I’ve seen firsthand the impact of well-chosen policies. Let’s dive into the details of the best non-owner car insurance options available.

What Is Non-Owner Car Insurance?

Non-owner car insurance is a specialized type of liability coverage designed for individuals who don’t own a car but occasionally drive rental cars, borrowed vehicles, or car-sharing services. It primarily provides liability coverage, which includes bodily injury and property damage that you might cause while driving a vehicle you don’t own.

It does not cover damages to the vehicle you are driving or any personal injuries you may sustain. This type of car insurance is ideal for people who frequently rent cars, borrow cars from friends or family, or use car-sharing services like Zipcar​.

One of the key benefits of non-owner car insurance is that it helps drivers maintain continuous auto insurance coverage, which can be beneficial for keeping auto insurance rates low in the future. A lapse in coverage can lead to higher premiums when you do purchase a car and need standard auto insurance.

Additionally, non-owner car insurance is often required for high-risk drivers who need to file an SR-22 or FR-44, which is a state-required form proving that a driver carries the minimum required insurance coverage following certain violations, such as a DUI​.

Non-owner car insurance policies are generally less expensive than standard auto insurance policies because they don’t include coverage for physical damage to a vehicle. However, it is important to note that non-owner insurance does not cover every scenario. For example, it typically does not cover rental cars used for business purposes, vehicles owned by someone in your household, or vehicles you have regular access to.

Therefore, individuals considering non-owner car insurance should carefully evaluate their driving habits and insurance needs to determine if this type of policy is the right fit for them​

Average Cost Of Non-Owner Car Insurance

Understanding the average cost of non-owner car insurance can help you make an informed decision when selecting a policy. Non-owner car insurance is typically less expensive than standard auto insurance, as it only provides liability coverage and does not cover physical damage to a vehicle.

Costs can vary based on factors such as your driving history, location, and the insurance provider. Below is a table showing the average annual cost of non-owner car insurance for five major carriers.

Standard Vs Non-Owner Car Insurance

Standard car insurance is designed for individuals who own a vehicle. It typically includes a combination of liability coverage (for bodily injury and property damage you may cause to others), collision coverage (for damage to your own vehicle in the event of an accident), and comprehensive coverage (for non-collision-related damage to your vehicle, such as theft, fire, or natural disasters).

Non-owner car insurance, on the other hand, is intended for individuals who do not own a vehicle but still need liability coverage when driving cars they don’t own, such as rental cars or borrowed vehicles. This type of insurance provides bodily injury and property damage liability coverage, protecting the driver from financial responsibility for injuries or damage they cause while driving another person’s vehicle.

However, non-owner car insurance does not include collision or comprehensive coverage, meaning it will not cover damage to the vehicle being driven or the driver’s own injuries. Non-owner policies are generally cheaper than standard policies because they provide limited coverage and are typically used less frequently. They are also useful for maintaining continuous insurance coverage and for meeting SR-22 or FR-44 requirements for high-risk drivers.

Annual Rates For Owner Vs. Non-Owner Car Insurance

Who Should Get Non-Owner Car Insurance?

Non-owner car insurance is an ideal solution for individuals who frequently drive vehicles they do not own. This includes people who regularly rent cars, borrow cars from friends or family, or use car-sharing services like Zipcar. For these drivers, non-owner car insurance provides essential liability coverage, ensuring that they’re protected in the event of an accident that causes bodily injury or property damage to others.

Additionally, this type of insurance can be beneficial for those who are between vehicles and want to maintain continuous coverage, which helps avoid lapses in insurance history that could lead to higher premiums when they eventually purchase a car and need standard auto insurance.

Another group that may require non-owner car insurance includes high-risk drivers who need to file an SR-22 or FR-44 form to prove financial responsibility after serious traffic violations like DUIs. Even if they don’t currently own a car, these drivers must have insurance to reinstate or maintain their driving privileges. Non-owner car insurance meets this requirement without the higher costs associated with insuring a vehicle.

It is also useful for individuals who occasionally drive company cars or other vehicles not owned by their household, as it provides an extra layer of liability protection that complements any existing coverage on the vehicle they’re driving.

Cheapest Non-Owner Car Insurance – By State

Below is a comprehensive table showcasing the average cost of non-owner car insurance across all U.S. states, enabling you to compare and choose the best option for your specific needs.