Which Companies Have the Best Non-Owners Car Insurance?

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Written by Nick Versaw Edited by Quiana Darden Reviewed by Amanda Clear

Updated December 20, 2022

If you don’t have your own car, then maintaining car insurance coverage may seem like an unnecessary expense. But what happens if you get behind the wheel of a borrowed car or occasionally rent cars from a car-sharing service? Are you covered in the event of an accident, theft, or natural disaster?

Even if you don’t have a personal vehicle, there are several reasons why it might be worth maintaining non-owner car insurance coverage. Not only are non-owner auto insurance policies cheaper than standard insurance, they allow you to maintain continuous coverage, so you don’t get stuck with higher rates later on.

Here’s everything you need to know about this type of insurance policy and which companies offer the best non-owner car insurance coverage.

Do You Need Non-Owner Car Insurance?

In most states, it’s illegal to drive without car insurance, but when it comes to driving someone else’s car, it’s a bit of a gray area. In some cases, such as borrowing a family member’s car, you may already be covered by their car insurance policy – as long as you aren’t explicitly excluded from it.

But even if you’re covered by someone else’s policy, their property damage or bodily injury liability limits may not be as high as you’d like. Here are four reasons you may want to have your own non-owner car insurance policy.

You Drive a Friend’s Car

Most insurers have a policy called “permissive use” that covers non-owners who borrow someone else’s car with permission. But if you drive a friend’s car often enough, their insurance company may argue that you should have been listed on their policy.

You Need SR-22 Insurance

If you’ve been convicted of a DUI or another serious traffic violation, you may need SR-22 insurance coverage. This type of coverage may be required if you want to keep or reinstate your driver’s license, even if you no longer own a vehicle.

Since high-risk drivers tend to pay higher auto insurance rates, a non-owner policy may allow you to maintain proof of insurance while paying a lower premium.

You Use Car-Sharing Services

Car rental companies like Zipcar usually provide liability coverage – and your credit card may provide rental car insurance too. But their liability policy may not cover damage to other vehicles or medical payments, or they may charge extra for it.

The more often you use rental vehicles, the more cost-effective it will be to have your own non-owner car insurance policy and set your own coverage limits.

You’re Without a Personal Car Temporarily

Finally, non-owner car insurance can come in handy if you intend to be without a car for a short period of time but eventually plan to get another. Maybe you’ve sold your vehicle to study abroad, or maybe your car got totaled a month ago and you haven’t replaced it yet.

Since having a gap in coverage can drive up your insurance costs when you take out a new policy, you may be better off maintaining non-owner car insurance coverage.

The 5 Best Non-Owner Car Insurance Companies

Not all car insurance companies offer non-owner car insurance policies and those that do vary widely in terms of average cost and coverage options. Most non-owner policies include bodily injury and property damage liability but don’t include add-ons like roadside assistance or rideshare coverage. They also don’t include comprehensive or collision coverage. 

Here are our top five insurance providers that offer non-owner coverage at affordable rates.

1. Direct Auto

Direct Auto is available in 16 states, with non-owner coverage available to drivers who don’t need a standard auto insurance policy. Other coverage options include towing, uninsured motorist coverage, and rental reimbursement.

Direct Auto specializes in high-risk car insurance and can help drivers with an accident or DUI in their driving history meet their SR-22 insurance requirements. Discounts are available for students, senior citizens, and military members.

Direct Auto makes it easy to file claims 24/7 and accepts multiple payment methods, including cash at participating locations. The company has an A- rating from AM Best and 4.1/5 stars on WalletHub, suggesting a positive reputation overall.

2. Dairyland

Dairyland offers cheap car insurance for high-risk drivers, with rates as low as $78 per in California. They also offer non-owner car insurance, but you may need to call them directly to request this type of coverage.

Dairyland caters to residents of all 50 states and has an A+ rating from the Better Business Bureau (BBB). Their website is available in English and Spanish, and they have insurance agents available 24/7 for claims and policy inquiries.

Bundling multiple types of insurance coverage is also an option since Dairyland offers motorcycle and off-road vehicle coverage, as well as a homeowner’s discount.

3. Nationwide

Nationwide offers several coverage options for non-owners, including non-owner auto insurance for small businesses. This could include personal injury protection, medical bill coverage, and uninsured motorist coverage for employees who go on errands.

The average liability-only insurance policy for individual drivers is $112 per month, so you can expect a non-owner policy to be even cheaper. Additional discounts include a student discount, accident-free discount, and defensive driving course discount.

With an A+ rating from the BBB and 4 out of 5 stars on Clearsurance, Nationwide has a strong track record no matter what type of insurance you need.

4. GEICO

GEICO has a reputation for cheap car insurance, with an A+ rating from the BBB and 867/1,000 from J.D. Power. Their non-owners car insurance policies are available in all 50 states and include bodily injury and property damage liability coverage.

If you live in a state with additional insurance requirements, such as uninsured motorist coverage, your policy will also include that type of coverage.

GEICO offers multiple ways to file a claim, including over the phone and through a mobile app, and offers discounts to federal employees and military members.

5. Progressive

Progressive has a rating of 856/1000 from J.D. Power and an A+ from the BBB, making them a reputable insurance company for non-owner drivers. Since they don’t specialize in high-risk insurance, drivers with a clean driving record will get the best rates.

The average cost of a policy with Progressive ranges from $137 per month to $232 per month, depending on the state, although non-owner policies are likely cheaper.

You can lower your rates further by using the Progressive Snapshot app, although this may be less beneficial with a non-owner policy. Other perks include the Small Accident Forgiveness program, which excludes certain claims from raising your premium. 

Shop Around for the Best Insurance Rates

Non-owner car insurance covers you when you drive a vehicle you don’t own, such as a friend’s car or a rental car. Although non-owner car insurance costs less than standard car insurance, it can still vary widely depending on your age, driving record, credit score, and how high your deductible is.

Compare.com makes it easy to find the best car insurance for you. Simply enter your ZIP code here to compare non-owner car insurance quotes today:

Nick Versaw Insurance Managing Editor

Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.