Do I need car insurance if I don't own a car?

Question

The cheapest non-owner insurance is from Geico, State Farm, and Farmers. Non-owner insurance is for people who don’t own a car but rent or borrow one frequently. Although non-owner car insurance is usually cheaper than a standard policy, the cost can still vary widely based on location, driving record, and other risk factors.... read full answer

Non-owner policies fulfill the state’s mandatory minimum requirements for liability coverage, though some companies also allow drivers to purchase additional coverage. Drivers can purchase non-owner policies from the country’s 10 largest insurers or from many nonstandard insurance companies.

Companies Offering Non-Owner Insurance

Farmers

Progressive

Nationwide

Travelers

American Family

State Farm

Geico

USAA

Allstate

Liberty Mutual

The General

Kemper

Dairyland

Acceptance

Direct Auto

Hallmark

Not all of these companies operate in every state. Additionally, Progressive only offers non-owner insurance policies to existing customers. It’s also worth noting that if you are rejected by a major company like Geico or State Farm, the nonstandard insurers on this list might be willing to sell you a policy.

Since non-owner insurance is relatively uncommon, most insurance companies have customers call for a quote rather than getting an estimate online. But despite the extra time this requires, comparing multiple quotes will pay off in the long run by saving you money based on your specific location and driving history.

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Answer 1 · 2021-01-13 13:38:10

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@WalletHub • 01/13/21 This answer was first published on 01/13/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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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.

Do I need car insurance if I don't own a car?

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What Non-Owner Car Insurance Covers

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