Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Sep 20, 2021

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The Lowdown

  • GEICO has the lowest rates for people without a car
  • Non-owner auto insurance is cheaper because drivers drive less
  • Non-owner auto insurance covers injuries, property damage, and medical bills

Auto insurance coverage is available for drivers who don’t own cars. GEICO has the lowest rates, and plans will only cover what you need. Understanding more about the best auto insurance companies for people who don’t own a car will help you find the best coverage.

Before you learn about the best auto insurance companies for people who don’t own a car, enter your ZIP code to get free car insurance rates in your area.

What are the rates from the best auto insurance companies for people who don’t own a car?

Comparing the best non-owner car insurance rates will help you find the best affordable auto insurance companies for people who don’t own a car. The following chart shows the average annual rates for people without a vehicle from different companies.

Average Annual Rates from the Best Auto Insurance Companies for People Who Don’t Own a Car
CompanyAverage Non-Owner Auto Insurance Rates
Allstate$638
Farmers$521
GEICO$311
Nationwide$677
Progressive$576
State Farm$408
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As you can see, the best auto insurance companies’ rates for people who don’t own a car are from GEICO.

The rates for non-owner insurance are cheaper than for owner coverage because non-owner coverage lacks comprehensive and collision. Those two coverages, which are typically the most expensive, are for owned vehicles.

Coverage for non-owners is also cheaper because auto insurance companies assume that people without cars drive less, making them less likely to get into an accident and file a claim.

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What do the best auto insurance companies cover for people who don’t own a car?

While non-owner auto insurance doesn’t cover as much as traditional insurance, you can still get plenty of protection. The primary difference between the two types of coverage is that people who don’t own cars don’t need to cover a specific vehicle.

There are four types of coverage for people who don’t own cars:

  • Coverage for injuries to other drivers in accidents you cause
  • Coverage for property damage in accidents you cause, excluding damage to the vehicle you’re driving
  • Coverage for accidents caused by an uninsured/underinsured motorist
  • Coverage for medical bills resulting from accidents

As previously mentioned, the two coverages you don’t need when you don’t own a car are comprehensive and collision. The Insurance Information Institute says these coverages are for repairing your vehicle, so they’re unnecessary if you’re not the car owner.

How can you find coverage from the best auto insurance companies for people who don’t own a car?

Auto insurance for people who don’t drive is uncommon, so you might be wondering how to get non-owner’s car insurance. While many car insurance companies don’t offer this coverage, they might refer you to a partnering company that does.

When looking for the best auto insurance companies’ quotes for people who don’t own a car, you might not find quotes online. You’ll likely have to call companies to find out if they offer coverage.

Who needs the best auto insurance companies for people who don’t own a car?

Now that you know the rates and how to obtain non-owner auto insurance, you need to determine if this is the best type of coverage for you. The following are some situations in which you should consider non-owner car insurance.

Get Non-Owner Auto Insurance If You’re Seeking to Get Your License Reinstated

States require that drivers with a suspended license due to a DUI conviction or other serious infraction file an SR-22 or FR-44 to get their license reinstated. This process involves proving that you have valid car insurance. Non-owner car insurance covers this requirement.

Get Non-Owner Auto Insurance If You Frequently Rent Vehicles

Similar to renting an apartment, you’re responsible for any damage to a rented vehicle. While renters insurance covers a rented residence, car rental companies offer car insurance to customers.

However, this insurance usually only provides the state’s minimum coverage requirement to drive. These companies also offer additional insurance options, but most charge by the day.

If you frequently rent vehicles, consistently adding coverage can add up. It might be cheaper to buy non-owner car insurance, which covers any vehicle you operate. This will allow you to avoid adding coverage each time you rent.

Get Non-Owner Auto Insurance If You Frequently Use Car-Sharing Services

Car-sharing services are for those that don’t own a car and are traveling further than walking distance. These companies allow members to rent a nearby car for a brief period.

The membership fee includes liability coverage, and you can obtain extra coverage for an annual cost. If you use more than one car-sharing service, this can add up. Non-owner car insurance will cover all vehicles you operate so that you don’t accumulate multiple annual fees.

Get Non-Owner Auto Insurance If You’re Borrowing a Car

When borrowing a car from a friend or family member, their insurance policy will cover you. But they might not have a policy that covers most situations in which you find yourself. Also, the claims process can be more difficult if you’re not the listed customer.

Purchasing non-owner auto insurance will allow you to choose your coverage, ensuring protection in any situation. Since you’re the customer, the claims process will also be much easier.

Get Non-Owner Auto Insurance If You’re Temporarily Between Cars

If you’re temporarily between vehicles but still need to drive, you won’t require a full-coverage policy. Non-owner auto insurance allows you to maintain a limited policy until you’re ready to buy a car, at which point you can increase your coverage.

While there are several situations in which you should buy non-owner car insurance, there are also situations in which you should avoid this coverage. The following are circumstances in which you should avoid non-owner car insurance.

Avoid Non-Owner Auto Insurance If You Live With Someone Who Owns a Car

Car owners require insurance on their vehicles, and this insurance covers anyone who drives the vehicle. If you live with a car owner, you probably know their coverage and will be covered by their policy while driving.

Avoid Non-Owner Auto Insurance If You Rarely or Never Drive

Whether you need car insurance depends on how much you drive. If you rent or borrow cars frequently, non-owner car insurance is a good option. However, if you rarely drive, rental insurance or the car owner’s coverage should be enough.

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Best Auto Insurance Companies for People Who Don’t Own a Car: The Bottom Line

People who don’t own cars can find coverage through non-owner auto insurance. GEICO offers the lowest rates, and these policies provide enough protection for those that don’t own the vehicle they’re driving.

Knowing the best auto insurance companies for people who don’t own a car will help you get the best coverage.

Now that you know about the best auto insurance companies for people who don’t own a car, enter your ZIP code to find free car insurance quotes in your area.