Do You Need a Non-Owner Auto Insurance Policy?

About 10% of U.S. drivers regularly rent or borrow cars and don’t own one of their own. If that’s your situation, you may still need the protection of a non-owner auto insurance policy. It gives you liability coverage when you drive a car that you don’t own or you’re a passenger in a car owned by someone else.

Keep reading to learn common situations when having a non-owner auto policy makes sense and can keep you safe.

6 Situations When You Need a Non-Owner Auto Insurance Policy

1. Renting a car. 
2. Borrowing a car. 
3. Using ride-sharing services. 
4. Using car-sharing services. 
5. Getting your driver’s license reinstated. 
6. Having a gap in insurance coverage.

Here’s the detail about these situations when you should consider having a non-owner auto insurance policy:

1. Renting a car.

When you rent a car, a non-owner auto insurance policy can protect you financially if you cause a crash. It typically costs less than purchasing coverage through the car rental company.

2. Borrowing a car.

If you often borrow a friend’s, neighbor’s, or relative’s car but aren’t named on the owner’s insurance policy, a non-owner policy makes sense for you, too. This is especially true if the owner of the car you borrow has a minimal amount of liability coverage.

Let’s say you cause a wreck while driving a borrowed car and are not named on the owner’s policy. You could be involved in a lawsuit and have to pay any amount not covered under the car owner’s policy.

However, a non-owner auto insurance policy does not cover damage you cause to a car you drive. It only covers damage to other cars, property, or injuries you cause to people who aren’t in a car you’re driving.

3. Using ride-sharing services.

In addition, you might want to look into a non-owner auto insurance policy if you often use services like Uber or Lyft. If you worry that a ride-hailing driver might not carry adequate coverage, it would protect you as a passenger.

4. Using car-sharing services.

Non-owner auto insurance also might be a wise investment if you don’t own a car but regularly drive cars from car-sharing services like car2go and Zipcar.

5. Getting your driver’s license reinstated.

Furthermore, you might need to buy a non-owner auto insurance policy if you don’t own a car but you’re trying to get your driver’s license reinstated. This might be the case after getting a conviction for...

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