No, you do not need car insurance if you don't own a car and don't plan to drive, unless your state has required you to file an SR-22 or FR-44. If that is the case, then you can purchase non-owner insurance, which will give you at least the minimum amount of coverage required by your state.
Even if you’re not required to carry non-owner car insurance, it’s a smart investment if you want the freedom to drive occasionally using rental cars, car sharing services, or borrowed vehicles. When you drive someone else’s car with their permission, you are generally covered by their insurance policy. But non-owner coverage allows you to choose your own policy limits, and it’s easier handle an insurance claim when you’re the insurer’s customer.
You should also consider purchasing non-owner car insurance if you are temporarily between cars and want to maintain continuous coverage with your insurer in order to avoid a lapse in coverage or receive customer loyalty discounts and benefits.
What Non-Owner Car Insurance Covers
- Injuries to other drivers in accidents that you cause.
- Property damage that you cause, excluding damage to the vehicle you’re driving.
- Your medical bills after accidents, depending on your state.
Most major insurance companies offer non-owner car insurance, which usually costs between $200 and $500 per year. If you purchase a non-owner policy, you are required to carry at least your state’s minimum coverage amounts. But you can also purchase additional coverage that is not required.
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