Can you drive with non-owners insurance?

No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don’t have personal insurance, you’ll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.… read full answer

Coverage Offered by Rental Car Companies

• Collision Damage Waiver:

Covers: Damage to the rental car in an accident

Similar to: Collision and comprehensive

• Supplemental Liability

Covers: Damage and injuries to the other driver from an accident you cause

Similar to: Bodily injury and property damage liability

• Personal Accident

Covers: Medical costs for injuries to you and your passengers

Similar to: Personal injury protection, MedPay and health insurance

• Personal Effects

Covers: Personal items stolen out of the rental car

Similar to: Homeowner’s or renter’s insurance

You don’t have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn’t enough protection if you get into an accident.

When You Don't Need The Rental Company's Insurance

Before you buy the rental company’s insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you’re renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.

Whether or not someone else can insure your car if the title is under your name, depends on state requirements and insurance company policies. This arrangement is legal in most states. However, your insurance company may refuse to issue a policy under these circumstances. Even if it does issue you a policy, there is a risk it may later refuse to pay a claim because of the different names.… read full answer

No, you do not need car insurance to borrow a car if the owner is insured, they have given you permission to drive the vehicle, and their policy allows it. Car insurance follows the car, not the driver, so expenses from an accident will generally be covered by the vehicle owner’s insurance policy. This is often referred to as permissive use.… read full answer

If you plan to drive borrowed cars frequently, you should consider purchasing a non-owner car insurance policy. Non-owner coverage gives you additional protection beyond what’s offered by the owner’s policy.

For example, if you’re in an accident while driving someone else’s car, the owner’s car insurance policy limits may not be high enough to cover all medical bills and repair expenses. A non-owner policy acts as secondary coverage, though, so it will kick in once you’ve hit the owner’s coverage limits.

Non-owner policies are much cheaper than normal car insurance, and only cost between $200 and $500 per year. Most major insurers sell non-owner coverage but don’t offer online quotes, so you will need to call in order to get an exact cost estimate.