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Non-Owner Car Insurance Guide

Non-owner car insurance is liability coverage for individuals who drive but don’t own a car basically. This type of insurance is going to give a person coverage in these instances:

  • License suspension and the need for an SR-22
  • A driver who drives infrequently and has no car of their own
  • You are in the process of finding a vehicle after a loss either to an accident or mechanical issues


The SR-22 is a form that will show that you carry the state minimum in liability coverage. The SR-22 is generally needed if you have a license suspension or when you have been given a citation following an at-fault accident or traffic violation. The SR-22 is not insurance in and of itself. It is just a piece of paper that indicates that you do carry a liability plan with an insurance carrier. 

If you do not possess a vehicle and need to present proof that you carry insurance, you may need to have a non-owner policy. A non-owner policy is going to fill the time between having to show that you have liability protection without the need to buy and insure a vehicle. And your current insurance carrier might not offer the SR-22 form. Some don’t due to the basic risk.

When You Don’t Own A Car

When you don’t own a car but are borrowing a car from someone else on occasion, you will find that a non-owners insurance policy is going to be beneficial. Car insurance generally applies to the car as opposed to the driver, having the addition of another plan will increase the liability limit. If you borrow someone’s vehicle and find that you are involved in an at-fault accident exhausting their insurance coverage, the coverage from your non-owner plan will allow the remaining damages to be covered.

Even though you don’t own a vehicle, not having the liability coverage as a driver can be a great disadvantage for you. Though you don’t have a car registered in your name, having gaps showing in your specific car insurance history will show as ‘red flags’ to other carriers once you are ready to go shopping for car insurance. This will deem you as high-risk and could result in much higher premium rates for you.

Being Between Owning A Car

If you’ve lost a car due to a total loss in a car accident or mechanical issues or after selling and not planning on driving for a certain period of time, having gaps that show in your insurance history would be a bad idea. Car insurance carriers view this as a driver who was driving without car insurance and deem this person to be high-risk elevating their premiums significantly. 

A non-owners policy is an option that you should consider even if you don’t plan to be driving during the time in between buying a new car. This will help you keep any future premium rates at a standard level by keeping you insured and viewed as a regular risk for future carriers who will be looking at your insurance history. 

Non-Owners Coverage

This insurance plan is going to work the same way as a traditional vehicle insurance policy with limitations being that it will only cover liability. There is no comprehensive or collision coverage. It does not provide full coverage. The reason is simple. The insurance carrier has no way of knowing the specifics of what type of vehicle you may be driving. You may drive a different vehicle each day. The value could vary from the vehicle that the carrier would be responsible for replacing from a beater to a brand new luxury car. 

Liability Coverage

Liability coverage is going to cover any damages that you may cause in a vehicle accident that is considered to be your fault. It won’t cover any kind of physical damage to the vehicle that you’re driving, but it will provide coverage for the other driver’s property.

Uninsured Driver Coverage

If you decide to borrow a car from a driver who carries no car insurance, your non-owner uninsured motorist coverage would kick in. The details of your policy will depend on the carrier and their guidelines as they vary from provider to provider, but they usually cover any kind of bodily injury suffered by you as well as passengers along with the property damage brought to the car.


This will reimburse for medical costs and fees associated with you and any passengers which could include wages that have been lost as well as the ride in an ambulance, up to certain percentages.


Non-owners auto insurance is an important plan to carry. There should be no gaps in your insurance history which will ultimately result in higher premiums for you at some point when you are ready to invest in a car and traditional car insurance. Even if you don’t plan to buy a car, this is just good extra protection to have as a driver if you happen to be involved in an accident from a liability perspective.