Non-owner auto insurance is for drivers who don't own a car but still want coverage while they are renting vehicles or driving someone else's car. Getting quotes for non-owner coverage is more difficult than it is for standard auto insurance, as some insurers do not offer these policies.
Find options for non-owner car insurance
However, major insurance companies that are known to generally offer non-owner car insurance coverage include GEICO, State Farm and Progressive. Out of these companies, we found that GEICO offered the cheapest non-owner car insurance policy quotes, at 26% less than the average annual cost.
Cheapest Non-Owner Car Insurance Companies
Drivers can expect low costs for non-owner car insurance with GEICO, based on the liability insurance rates it quoted our profile driver. At $621 per year, GEICO's average quote was 26% cheaper than the mean across the companies we surveyed—which was $834. Choosing State Farm or Progressive over GEICO could cost $285 to $354 more per year.
Although we found that GEICO's rates were the cheapest, the best non-owner car insurance company for you will heavily depend on where you live, as the insurers willing to offer this kind of policy in any given area can vary. To find the cheapest non-vehicle owner insurance rates, you will likely have to call multiple insurers in your area and compare quotes.
How Much Does Non-Owner Auto Insurance Cost?
Non-owner car insurance is much cheaper than typical insurance policies. In our research, non-owners insurance cost 72% less than a full-coverage policy. In Los Angeles, we estimate that non-owner car insurance costs $2,565 less per year than a policy that includes comprehensive and collision coverage.
Why Is Non-Owner Auto Insurance so Cheap?
Non-owner auto insurance is usually cheaper than a typical full-coverage auto insurance policy because it doesn't cover vehicle repair or replacement; it just offers liability insurance. Comprehensive and collision insurance—which is included in full-coverage policies—covers repairs and replacement to your own vehicle after an accident regardless of fault. This type of coverage isn't necessary if you don't own a vehicle. It can be one of the most expensive components that make up your premium—at least half the cost of a full-coverage policy.
Non-owner car insurance is also cheaper than typical policies because insurers assume you will drive less frequently and are less likely to file a claim. One of the questions insurance companies typically ask is the number of miles you plan to drive in a year. People who drive more often are at a higher risk of getting into an accident, causing the insurance company to pay out for a claim. Insurers will assume that people who don't own a car won't drive very often, and therefore they will charge less for non-owner policies.
It's also worth noting that you won't qualify for a non-owner car insurance policy if you have regular access to car. For example, if you don't own a car but live with a roommate who does, you are not eligible for a named non-owner policy. In this situation, you are likely covered by your roommate's insurance if you occasionally use their car with their permission. If you lie about having regular access to a car, then the policy likely won't cover you in the event of an accident where you're at fault.
How to Get Non-Owner Car Insurance Quotes
To get non-owner car insurance quotes, you'll need to call insurance companies that service your area directly, as most companies don't offer online quotes. Additionally, an insurer may require you to work directly with a local agent or even meet at a nearby office.
Because non-owner car insurance policies are atypical, major insurers may not offer you coverage. Instead, the insurer may refer you to a non-standard car insurance company. Some examples of these insurers include Direct Insurance, The General Insurance and Titan Insurance.
Non-standard auto insurers specialize in offering coverage to high-risk drivers, and those seeking non-owner auto insurance are sometimes considered high-risk. If you don't currently have an auto insurance policy or haven't had one for quite some time, insurers will view you as more risky than drivers who have maintained consistent coverage. This is true even if you haven't needed car insurance—which is likely, considering you are seeking a non-owner car insurance policy.
Furthermore, non-standard auto insurance policies may be the only option if you are seeking an SR-22 non-owner car insurance policy. This is often the case for drivers who have had their licenses suspended (often for a DUI), don't own a car and need an SR-22 filed to get their licenses reinstated. An SR-22 is a form an insurance company files on your behalf that proves that you have liability insurance.
Insurance rates were estimated based on the quoted cost of liability coverage and subtracting the typical cost difference for non-owner car insurance policies. We sampled rates across three cities: Los Angeles, Chicago and New York City.