What Is Non Owner Car Insurance?

A non-owner car insurance policy is designed for people who do not own a car and frequently drive vehicles belonging to other people--perhaps cars owned by friends, or rental cars. The policy covers any damages you might cause to somebody's property and any injuries for which you are liable. It will not pay for damage to the vehicle you're driving, however, because it is a liability-only policy with no collision coverage.

Limited Options

Most insurance companies do not provide non-owner policies, or provide them on a very limited basis. As of 2009, American Family Insurance, for instance, provides some limited non-owner policies to people who have previously received a conviction of driving while intoxicated and now need proof of insurance to obtain a new driver's license, but no longer own a vehicle.

Metropolitan Areas

Some insurance companies offer non-owner coverage mainly designed for people who live in metropolitan areas like New York and Chicago. In some cities, many people do not own cars because of limited parking options at apartment buildings, the cost of parking, higher insurance prices, and the inconvenience of driving in heavily congested traffic. Many of these city residents are more likely to forgo vehicle ownership and instead borrow one occasionally.

Car Rentals

People who do not own a vehicle and frequently rent one for traveling, or rent one simply to use for a certain length of time, may have a financial advantage in purchasing a non-owner policy rather than paying the rental company insurance each time. Some auto rental companies, however, require that the person purchase coverage from the rental company.

Uninsured Coverage

Non-owner policies also are beneficial in states where insurance coverage is not mandatory, and where a driver may be borrowing an uninsured vehicle. However, as of 2009, nearly all states require auto insurance.

Obtaining Quotes

If you're interested in purchasing a non-owner car insurance policy, call several agents or check websites to gather quotes. Prices and types of coverage vary widely, so you'll want to do some research to get the best coverage for the lowest price. Start with any insurance companies you currently do business with, in case they have an umbrella policy option which would include non-owner car insurance coverage.