USAgencies

How Non-Owner Car Insurance Works

A non-owner car insurance policy, sometimes referred to as non-drivers insurance, provides bodily injury and property damage liability coverage when you’re driving a vehicle you don’t own. Unlike a standard car insurance policy, there’s typically no deductible when you file a claim on a non-owner car insurance policy.

If you borrow someone’s car and are involved in an accident, the vehicle owner’s car insurance pays out first. If it’s not enough to cover damages, your non-owner policy will kick in as secondary coverage. That said, non-owner’s insurance doesn’t include collision coverage. So it won’t cover repairs to the vehicle, only the vehicle or piece of property you hit.

Optional coverages normally associated with car insurance, like collision, comprehensive, towing, and rental reimbursement, are not available through non-owner policies. Again, this is because there’s no specific vehicle for the policy to insure.

However, some providers also offer medical payments and uninsured/underinsured motorist bodily injury coverage as part of their non-owner car insurance policies. If you want this type of coverage, be sure to ask about it when requesting quotes.

Some non-owner policies will also provide liability coverage for rental vehicles. Read the fine print on your non-owner policy if you intend to use it for rental cars, and make sure it actually covers you when you’re driving one.

If you don’t rent cars often, it’s cheaper to use your complimentary credit card rental car insurance or purchase coverage through the car-rental agency.