Do You Need Car Insurance if You Don’t Own a Car?

Thursday, July 20, 2017

Let’s make things simple. There’s only a few situations where you don’t need car insurance – even if you don’t have a car. If you plan to drive a car at all, it’s typically a good idea to have some type of coverage.


Maybe you moved to the big city from the countryside. You sold your car back in the country and plan to use public transportation everywhere you go in the city. Perhaps you don’t own a car and have no plans to drive, but are still curious if you need some form of car insurance.


You think about the times you’ll be back in the countryside for holidays with the family or maybe you know you’ll be the designated driver for friends at least once every month or two. Do you need car insurance in a scenario like this?


The answer could be yes. There are times when getting car insurance is a good idea, even when you don’t own a car. For most of these situations, a non-owners’ car insurance policy can keep you covered.


What is Non-Owners’ Car Insurance?


Non-owners’ auto insurance is fairly straightforward. The coverage provides liability protection for a driver who is renting or borrowing a car. The liability offered from these policies pays for injuries and property damage to others if you were to cause a crash in a car you do not own.


Basically, if you’re going to be driving a car you don’t own on a consistent, but not daily basis – than it is a good idea to look into non-owners’ auto insurance. The policy could protect you financially in the event of an accident you cause.


Understanding Car Insurance If You Don’t Own a Car


The world of insurance can be a confusing place, especially if you don’t like to get into the details of each policy. Luckily, that’s what we are here for. So, let’s dive into non-owner auto insurance and look at situations where policies can be beneficial and times when you don’t need coverage:


  • Borrowing a Car: If you’re borrowing a car and you’re not on the policy of the individual from whom you are borrowing, then a non-owner auto insurance policy could be beneficial. While you may not think you need this coverage if you only borrow a car once in a blue moon, you can never predict when you will be in an accident. Non-owners’ coverage is important when borrowing cars.


  • Renting a Car: You may want to get a similar policy when renting a car, too. Certain credit cards and rental agencies offer other insurance policies, but you have to have some type of insurance when renting. If your credit card doesn’t provide coverage, then a non-owners’ policy will save you money compared to the offerings from the rental agency.


  • Leasing a Car: You cannot get a non-owners’ policy when leasing a car. You need full insurance when you lease, as you technically “own” the car while it is in your possession. You’re actually required to have full coverage when leasing by law and getting a gap protection policy is also advised.


  • On a Policy: If you’re a teenager on your parents a car insurance policy or you live with someone who put you on their policy, then you needn’t worry about non-owners’ insurance. You already are a policyholder in one way or another. Just make sure whoever has you listed on their auto insurance coverage doesn’t take your name off without telling you.


  • Deployed in the Military: If you own a car, but are deployed for military service, you are not required to carry any form of car insurance – unless someone is driving the car while you’re away, like a family member or spouse.


  • Can’t Afford Coverage: Even if you cannot afford car insurance, you should make it a priority to pay for coverage if you have a car or plan to drive at all. It is illegal to drive without auto insurance and can cause you a lot of problems in the future. You’re better off lowering your coverage to the state minimum, looking for a non-owner’s policy, or shopping around for cheaper quotes.


When You Don’t Need Coverage


There are instances where you should not spend money on car insurance. For example, if you are handicapped and unable to drive, then there is no reason to waste money on a car insurance policy, non-owner or not.


For individuals in the big cities who do not own cars and never plan to drive, an auto insurance policy may be a waste of time and money. If you plan to travel internationally for a while, then there may be no need for a car or insurance.


For the majority of people who do not own a car, but still drive on occasion, a non-owner auto insurance policy could be a great idea. While every situation is different, we do not recommend ever getting behind the wheel without some type of protection.


How Much Does it Cost?


If you’re considering buying auto insurance, but you don’t own a car – you may be curious about costs. These types of policies typically vary in cost, depending on:



  • Your driving record
  • Your age
  • What state or city you live in
  • What type of protection you want
  • How often you drive
  • What type of cars you may operate



For most, a non-owners’ policy will be cheaper than a standard auto insurance policy because the coverage options are different and risk is often reduced due to time behind the wheel.


Do You Need Car Insurance if You Don’t Own a Car?


If you don’t own a car, but still plan to drive around in a friend’s car, family members’ automobile, or rental – then it could be a good idea to get some type of car insurance. For most people in a situation like this, a non-owner auto insurance policy will give them the coverage required to hit the open road with confidence.