Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Feb 4, 2020

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A non-owners auto insurance policy is auto insurance coverage for people who do not own the vehicles they drive.

People who occasionally rent a car or use somebody else’s vehicle can benefit from carrying a non-owners auto insurance policy since it provides your own insurance coverage in the case of an accident without being dependent on whether or not the owner had enough insurance to cover you.

Non-owners auto insurance is most common in areas where public transportation is good and the cost of owning a vehicle is expensive. Residents of cities like New York and Chicago often carry non-owners auto insurance so they have coverage when the occasional time arises they need to use a vehicle.

Compare auto insurance quotes for non-owners auto insurance coverage today!

What are the advantages of a non-owners auto insurance policy?

The biggest advantage of carrying your own auto insurance policy is peace of mind, knowing how much coverage you have in a car accident. When you drive a vehicle belonging to someone else, there are many things that can happen to cause you to be underinsured or even uninsured.

Non-owners auto insurance is a form of supplemental insurance that goes above and beyond the owner’s auto insurance policy. This means regardless of how much auto insurance the owner has, you have pre-defined limits of coverage for liability protection through your own policy, minimizing the risk of personal liability.

Some of the biggest benefits of a non-owner auto insurance policy include:

  • Cheap Rental Car Insurance – If you don’t own a car, then there will be times when you need to rent one, and nobody wants to pay the high daily rental car insurance rates. You are required to show proof of insurance before renting a vehicle, so if don’t have auto insurance coverage for a vehicle, then you will have to pay these ridiculous rates. Non-owners auto insurance is very affordable, and even if you rent a car for only two days a month, it can often be cheaper just to purchase your own policy coverage.
  • Always Insured – If you need to grab the keys of someone else’s car for a midnight run or an emergency situation where you have to drive, then you will be covered without having to worry about whether or not you are insured.

Auto insurance is not just a bill, but it is a serious financial tool to protect your liability in a car accident.

Owning and maintaining a vehicle in some cities can be extremely expensive, but if you ever use a vehicle, then it’s important to have enough coverage. Otherwise, you may be riding a skateboard for the rest of your life.

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What are the disadvantages of a non-owners auto insurance policy?

A non-owners auto insurance policy is very affordable and useful; however, it’s not for every situation nor does it provide complete insurance protection in the event of an accident.

Every auto insurance company who offers non-owners coverage will have different policy terms, but there are some common disadvantages across providers such as:

  • Liability Coverage Only – There is no collision coverage offered with most non-owners auto insurance policies, so while you may have enough coverage to pay other people’s damages, there is no insurance for damages to the vehicle you were driving, your medical expenses and more.
  • Strict Limitation on Vehicle Use – A non-owners auto insurance policy extends coverage to vehicles not owned by the policyholder, but they restrict different types of vehicles, such as work vehicles and vehicles, that the policyholder may have consistent access to.

While a non-owner auto insurance policy can be very beneficial and affordable for people who do not own a vehicle, there are limitations on the amount of policy coverage you can buy and more.

For people who generally rent a car every now and then, this type of auto insurance can be valuable. However, make sure you understand how any potential non-owners auto insurance policy really works before signing up.

Sometimes it can be cheaper just to be added as a driver to someone else’s policy where you may benefit from much more coverage and lower premiums.

Compare auto insurance rates for non-owners insurance policy today!

Related posts:

  1. Auto-owners Insurance Car Insurance Review
  2. Can a person get auto insurance without owning a vehicle?