Even if you don't own a car, you may still need car insurance. After all, you may still find yourself driving from time to time. If you end up at-fault in a car accident, you could be responsible for the other party’s damages.

That’s why you should consider non-owner auto insurance.

On average, this kind of policy costs $474 per year for the typical driver.

However, several factors can affect your overall rate. In this short guide, we’ll cover the ins and outs of non-owner car insurance and its cost.

Non-Owner Car Insurance: A Brief Overview

What is non-owner car insurance? Before taking a deeper dive into the cost, it’s essential to understand what non-owner car insurance is.

Non-owner car insurance gives individuals liability coverage who drive but don’t own a vehicle.

To that end, not everyone needs non-owner car insurance. If you rely entirely on public transportation, or if you’re unable to drive a car for whatever reason, this policy isn’t necessary. Additionally, when searching for this policy, it can be hard to find a lot of information on it—often being categorized under “non-standard” policies on your car insurance company’s website.

Non-owner car insurance differs from typical car insurance coverage in that non-owner insurance is generally used as secondary coverage in the case of an accident. The insurance of the owner of the car that was in the accident is used first. The non-owner insurance comes into play only if the car owner's insurance does not fully cover the expenses and your policy has a higher liability limit. However, since the policy is not tied to one vehicle, it does not provide comprehensive or collision coverage. Additionally, if you were at fault in the accident, it will not cover your medical expenses for bodily injury.

Non-owner car insurance is good coverage to have in the following situations:

  • You rent cars regularly or use a car sharing service. An annual non-owners policy can be much less expensive than the insurance offered by rental car companies.

  • You drive another person’s car frequently. If you drive a car you don’t own and are involved in an accident, a non-owner car insurance policy can potentially pay for extra expenses not covered by the car owner’s insurance policy.

  • You want to maintain insurance coverage while you don’t own a car. Non-owner car insurance can prevent a lapse in coverage. Even a short lapse of a week or 30 days lapse can have a negative effect on your car insurance rates, resulting in an increase of 9% (or about $130 annually) when you apply for new coverage.

  • You need to have a liability policy so that you won’t lose your driver’s license. This mainly applies to high-risk drivers. We'll discuss them in more detail later.

Average Price of Non-Owner Car Insurance

If you have determined that you need non-owner car insurance, you now probably want to know how much it costs. Non-owner car insurance is generally cheaper than the auto insurance you would buy as a car owner.

While the average insurance rate is just shy of $500, the actual cost of non-owner car insurance can vary widely.

Factors Affecting the Cost of Non-Owner Car Insurance

Demographic factors like age, geographic location, and sex always influence your insurance rates. Below, we’ll discuss some of the most significant factors influencing how much you pay for non-owner car insurance.

Your Driving Record

Do you have a DUI citation? Have you been in a lot of accidents? Do you regularly file damage claims? If so, you’re considered a high-risk driver. And you can probably guess what that means. According to US News & World Report, the “higher a risk you are, the more your policy will cost.”

You may not think it’s worth it to take out insurance if your licence has been revoked. However, a non-owner car insurance policy can satisfy the proof of insurance requirement needed for filing an SR-22 or FR44 vehicle liability insurance document.

A non-owner car insurance policy can be a more affordable alternative to the large deposit otherwise required to get your driver’s license back.

Geographic Region

Non-owner car insurance rates are affected by what state you live in.

These three states have the highest average non-owner car insurance cost:

  • New Jersey

  • Michigan

  • Rhode Island

On the other hand, these three states have the lowest average non-owner car insurance cost:

  • Wisconsin

  • South Dakota

  • Iowa

Urban areas have a higher density of drivers. Therefore, the city you live in can also impact how much you pay for non-owner car insurance. Take California, for example. While the average non-owner in California pays less than the national average—$286—people in some municipalities pay closer to $400.

Drivers in these three California cities pay less than the average cost:

  • Salinas – $220

  • San Diego – $243

  • San Jose – $248

However, drivers in these three California cities pay more:

  • Long Beach – $304

  • Los Angeles – $351

  • Glendale – $386

Save on Non-owner Insurance with OAI

Non-owner car insurance can be helpful for certain types of drivers, such as those who regularly borrow or rent cars. While demographic factors do affect your rate, you can also take control of it.

At OnlineAutoInsurance, we make it easy to find the right policy. Simply enter your ZIP code and a few personal details and we’ll reveal the best rates in your area.

Sources:

US News & World Report. What Is Non-Owner Car Insurance?\ https://cars.usnews.com/cars-trucks/car-insurance/non-owner-car-insurance