If you don’t own a car but regularly drive a rental vehicle or another person’s car, consider non-owner car insurance. This coverage provides liability protection to pay for injuries and property damage of others in an accident. Damage to the car you are driving or your injuries are usually not covered. In some states, you may also obtain coverage for uninsured/underinsured motorist protection and medical payment for your injuries. 

Recommended situations for non-owner car insurance include:

• ·         When using a car-sharing service, such as Zipcar or Turo.
• ·         To maintain continuous coverage between selling your car and buying a new one.
• ·         If you frequently rent cars.
• ·        If you frequently borrow other people’s cars, especially if you want a higher level of coverage than that of the vehicle’s owner.
• ·         When obtaining or reinstating a driver’s license, some states require insurance to show “proof of financial responsibility.”

If you frequently borrow a car from someone in your household, non-owner insurance is not recommended.  Instead, you should be included as a covered driver since all driving-age household members may be required to be listed on the policy. If you drive rarely, buy insurance when renting a car or you may be covered on the policy of the person whose car you borrow, if driving with their permission.  

To obtain non-owner car insurance, directly contact an insurance company or agent. Most insurers don’t provide non-owner quotes online. Non-owner car insurance usually has a lower cost than the same liability coverage if you owned a car.

For additional information on non-owner car insurance, click here.

Teaching Suggestions

• Have students contact an insurance agent to obtain rate information for non-owner car insurance.
• Have students create a visual (poster or slide presentation) describing situations in which non-owner car insurance might be appropriate.

Discussion Questions 

1. When might non-owner car insurance be of value to a driver?
2. Describe actions people might take to determine if they have adequate auto insurance coverage.