Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

Full Bio →

Written by Jessica Sautter
Content Writer Jessica Sautter

Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

Full Bio →

Reviewed by Natasha McLachlan
Content Writer Natasha McLachlan

UPDATED: Apr 29, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

To make things simple right from the start, there are only a few situations where it is not necessary to have car insurance even if you don’t own a car. If you plan to drive a car at all, it is usually advisable to have some form of coverage. A non-owners’ car insurance policy can help keep you covered for many of these situations.

What is Non-Owners’ Car Insurance?

You Always Need Car Insurance Even If You Don't Own A Car
A serious car accident can hit you financially. So, be well prepared.

It is a type of car insurance that provides liability protections for drivers that rent or borrow cars. The liability offered by the policies pays for injuries as well as damage to other people’s property in case you cause an accident in a car that you don’t own.

Understanding Non-Owners’ Policy

It is important to look into such coverage more in-depth and look at situations where it can be beneficial and instances when coverage is not necessary.

Compare quotes from the top car insurance companies and save!

secured lock Secured with SHA-256 Encryption

When is it Beneficial?

Borrowing a Car: If you regularly borrow a car and are not on the policy of the person from whom you are borrowing, then it could be beneficial to have a non-owner car insurance policy. While you might assume that you don’t need it since you rarely borrow a car, it is impossible to predict when you will be involved in an accident.

Renting a car: You need such policy when renting a car. Some rental agencies and credit cards offer other insurance policies, but some type of insurance is required when renting a car. If your credit card does not offer coverage, this policy will save you money compared to what the rental agency offers.

When is it Not Necessary?

Deployed in the Military: If you own a vehicle, but have been deployed for military service, it is not necessary for you to carry any form of car insurance unless somebody will be driving the vehicle while you are away such as spouse or family member.

On a Policy: If you are on your parents’ or single mom’s car insurance policy or live with somebody that has put you on their policy, you need not worry about non-owners’ insurance. The important thing is to ensure that the person that has listed you on their coverage does not take your name off without informing you.

Leasing a Car: A non-owners’ policy is not necessary when you are leasing a car. When leasing, you require full insurance since you technically “own” it while it is in your possession. You are required by law to have full coverage when leasing and a gap protection policy is also recommended.

The Bottom Line: Do You Need Insurance Even If You Don’t Own A Car?

If you don’t own a car, but you still plan to drive around in a rental or a borrowed car, it is highly advisable to get some form of car insurance. For most people in such a situation, a non-owner policy will provide the necessary coverage to hit the road with great confidence.