Auto Insurance When You Don't Own a Car

Even if you do not own a car, if you borrow cars occasionally and rent them sometimes, it is best to carry some auto insurance to protect yourself from potential liability should you have an accident.  Without a policy, you are relying on the owner of the vehicle having sufficient insurance to cover you and any damage you may cause to property or people.  If, however, you are driving a car that is either uninsured or has the minimum limits required, you are still opening yourself up to the possibility of facing some serious financial liability.  Non-owner auto insurance is all about having protection against whatever legal claims the other driver in an accident might have after you have caused him harm.

A policy for non-owners would include coverage for property damage and bodily injury, possibly uninsured/underinsured motorist coverage if you are unlucky enough to be hit by an uninsured driver, and medical payments coverage (if you need it) to take care of your own medical bills, if you do not have health insurance in place.  It would not include collision or comprehensive coverage to take care of damage to your friend’s car.  It costs much less than the full coverage you would buy if you owned a vehicle.

Note that non-owner coverage is not for members of one's own household. In other words, the policy cannot be purchased for your teen driver, or for your grandmother if they are living with you. The policy will also not cover someone driving a commercial or company vehicle.