Non-owner auto insurance is for drivers who don’t own a car but still want coverage while renting vehicles or driving someone else’s car. Getting quotes for non-owner coverage is more difficult than for standard auto insurance, as some insurers don’t offer these policies.
However, the major insurance companies that typically offer auto insurance coverage for non-owners include Geico, State Farm, and Progressive. Of these companies, Geico offered the cheapest non-owner auto insurance quotes at 26% less than the average annual cost.
cheapest non-owner car insurance companies
Drivers can expect low costs for non-owner auto insurance with Geico, based on the liability insurance rates our profiled driver quoted. At $621 per year, Geico’s average quote was 26% cheaper than the median of the companies we surveyed, which was $834. choosing state farm or progressive over geico could cost $285-$354 more per year.
Although geico’s rates were the cheapest, the best auto insurance company for you will largely depend on where you live, as insurers willing to offer this type of policy in a given area may vary. To find the cheapest non-vehicle owners insurance rates, you’ll probably have to call several insurers in your area and compare quotes.
how much does auto insurance cost for non-owners?
Non-owner auto insurance is much cheaper than typical insurance policies. In our research, non-homeowners insurance costs 72% less than a full coverage policy. In Los Angeles, we estimate that auto insurance for non-owners costs $2,565 less per year than a policy that includes comprehensive and collision coverage.
why is car insurance for non-owners so cheap?
Non-owner auto insurance is often cheaper than a typical full-coverage auto insurance policy because it doesn’t cover vehicle repair or replacement; It only offers civil liability insurance. Comprehensive and collision insurance, which is included in comprehensive coverage policies, covers repairs and replacement of your own vehicle after an accident, regardless of fault. This type of coverage isn’t necessary if you don’t own a vehicle. It can be one of the most expensive components of your premium—at least half the cost of a full coverage policy.
Non-owner auto insurance is also cheaper than typical policies because insurers assume you’ll drive less often and be less likely to file a claim. One of the questions insurance companies often ask is how many miles you plan to drive in a year. People who drive more frequently are at higher risk of being in an accident, causing the insurance company to pay a claim. Insurers will assume that people who don’t own a car won’t drive very often, and therefore charge less for non-owner policies.
how to get car insurance quotes for non-owners
To get non-homeowner auto insurance quotes, you’ll need to call the insurance companies that serve your area directly, as most companies don’t offer online quotes. Additionally, an insurer may require you to work directly with a local agent or even meet at a nearby office.
Because non-owner auto insurance policies are atypical, you may not be covered by major insurers. Instead, the insurer may refer you to a non-standard auto insurance company. Some examples of these insurers include direct insurance, umbrella insurance, and titan insurance.
Non-standard auto insurers specialize in offering coverage to high-risk drivers, and those seeking non-owner auto insurance are sometimes considered high-risk. If you don’t currently have a car insurance policy or haven’t had one for quite some time, insurers will consider you riskier than drivers who have maintained consistent coverage. This is true even if you haven’t needed car insurance, which is likely, considering you’re looking for a non-owners car insurance policy.
In addition, non-standard auto insurance policies may be the only option if you are looking for a non-owners SR-22 auto insurance policy. This is often the case for drivers who have had their licenses suspended (often for a DUI), do not own a car, and need to file an SR-22 to reinstate their licenses. An SR-22 is a form an insurance company files on your behalf that proves you have liability insurance.
Insurance rates were estimated based on the quoted cost of liability coverage and subtracting the cost difference typical of non-owner auto insurance policies. We tested rates in three cities: Los Angeles, Chicago, and New York City.