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rental car damage and liability insurance

 "Non-owner" car insurance seems odd. But just as its name implies, it is auto insurance for those without cars. How can it be useful? Non-owner car insurance can, for instance, be useful if you rent or borrow a vehicle and get into an accident. 

This policy is vital since personal auto insurance does not cover vehicles used for business purposes. Due to its limited coverage for business-owned vehicles, commercial auto insurance will also not suffice

Non-owner car insurance is a good choice for those who often rent or borrow vehicles

Non-owner car insurance: what does it cover?

The purpose of non-owner auto insurance is to protects you legally and financially in case of an accident. The auto policy covers owned, rented, leased, or borrowed vehicles. Liability coverage depends on the requirements of your state. Additionally, it includes: 

  • An uninsured motorist coverage covers a driver with no insurance who is at fault in an accident.
  • Coverage for uninsured motorists: It pays for damages caused by an accident in which the at-fault driver's insurance limits are insufficient to cover the losses.
  • You can get personal injury protection regardless of who is at fault for your injuries after an accident.

Providing uninsured/underinsured motorist coverage, this type of protection benefits both employers (or renters) and employees. Suppose you drive for a company and are in an accident due to another driver's negligence. By providing legal defense costs, non-owner car insurance protects you from liability. 

Non-Owner Car Insurance: How to get it?

Non-owner automobile insurance is usually issued according to different guidelines by insurers. The following information must be provided to your insurance company to purchase a policy: 

    • A valid driver's license 

    • Vehicle ownership proof

    • Proof of no vehicle ownership in your household may be required in some cases.

A declaration of non-ownership must be filed with the DMV if you don't own a car or someone in your household doesn't own one. After providing this information, you can then purchase the policy based on your budget. 

Your driving record may make you a "high-risk" driver if:

    • Unlicensed driving

    • Several traffic violations in a short period

    • Impaired driving

    • Driving recklessly

Non-Owner Car Insurance: How Much Does It Cost?

Non-owner car insurance policies typically cost between $200 and $500 per year. Since these policyholders aren't on the road as much as average car insurance policyholders, they pay less for car insurance. 

In the United States, full coverage auto insurance costs about $1,674. Hence, it is a relatively cheap policy. If you are planning on buying a car sometime soon, that is. It is important to understand that rates depend on several factors, including:

    • Age 

    • Driving history 

    • Location 

    • Coverage amount 

A high-risk auto insurance policy might be necessary if you're an inexperienced or young driver. You might pay more for car insurance if you don't own the vehicle. Any questions regarding coverage rates should be directed to your local insurance agent.


Non-owner car insurance is an affordable and viable option for people who don't own their vehicles. Employer-driven vehicles are covered under this policy, which provides the minimum liability coverage.

Having liability coverage while driving regularly is a cheap and affordable option for individuals who don't own a car. You can also use it as a substitute for standard car insurance until you get standard coverage. 

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