Whitney Russell
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What Non-Owner Car Insurance Is and Why You Might Need It

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Auto insurance carriers offer an array of policy types to suit different circumstances

Auto insurance isn’t just for car owners. It turns out that there’s a special kind of coverage for those who don’t own vehicles. Discover what non-owner car insurance is and the benefits of having this type of policy.

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Defining non-owner car insurance

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Simply put, non-owner car insurance is a type of insurance meant to protect you from liability in the event you cause an accident with someone else’s vehicle. If you frequently rent a car from an acquaintance (or car rental agency) or you’re in between cars right now, this coverage is a useful one to have.

What this policy covers

Non-owner insurance typically has the following three provisions, according to Forbes’ Jason Metz. It covers the medical expenses of anyone injured in an accident that you cause. Additionally, it covers any expenses related to car repairs and property damage. Lastly, this policy will help cover attorney fees if the other party ends up suing you for causing the collision.

What it doesn’t cover

Like with any auto insurance policy, this one has its exclusions. For starters, each person must have their own individual policy since non-owner car insurance doesn’t cover multiple drivers.

It also doesn’t cover physical damage to the vehicle you’re driving. This applies whether you’re renting the vehicle or you own it but forgot to convert your policy into a traditional car-owner auto policy when you bought it.

Non-owner car insurance won’t cover vehicles owned by a resident of your household. If you regularly drive a family member’s vehicle, you’ll want to make sure they add you as a driver on their policy in case you get into an accident when driving their car.

Here are some tips for securing a good deal on car insurance. And make sure to read this article to learn more about factors that impact car insurance rates.

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