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The Best Non-Owner Auto Insurance

If you don’t own a car but still drive, these companies can protect you.

Best Overall
Allstate Logo 2023

Allstate is our favorite for non-owner car insurance, thanks to its highly rated customer service, impressive line-up of discounts, and excellent reputation in the industry.

Best for Affordable Rates
State Farm Logo

State Farm is not only the largest auto insurance carrier, but it offers one of the most affordable annual premiums with excellent financial strength and reputable customer service.

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Non-owner insurance typically only provides property damage and bodily injury liability coverage. In other words, if you’re driving in a car you don’t own and cause an accident, your insurance will cover damage and injuries of people outside of the car, up to your coverage limits.

This type of insurance is usually available at a lower cost than other policies. However, it doesn’t provide comprehensive or collision insurance, which covers damage to the insured’s vehicle due to collisions and non-collisions, nor will it cover the insured person and their passengers. It does not include personal injury protection (PIP), rental car insurance, or coverage for drivers of car-sharing services like Uber.

Are you in the market for non-owner car insurance? We’ve rounded up the top five insurers that offer non-owner car insurance, whether you frequently rent cars or just borrow a friend’s.

The Best Non-Owner Auto Insurance

  1. 1.

    Best Non-Owner Auto Insurance Overall: Allstate

  2. 2.

    Most Affordable Non-Owner Auto Insurance: State Farm

  3. 3.

    Best Non-Owner Auto Insurance for Coverage: Farmers

  4. 4.

    Best Non-Owner Auto Insurance for Military: USAA

  5. 5.

    Best High-Risk Non-Owner Auto Insurance: Acceptance Insurance

Comparison of the Best Non-Owner Auto Insurance

Provider Ranking Best for J.D. Power rating (out of 1,000) Discounts available Average annual cost of non-owner auto insurance Read review
Allstate 1st Overall 889 Smart student, new car, payment options, etc. $640 Allstate review
State Farm 2nd Affordable 882 Vehicle safety, safe driving, multiple vehicles or policies $400 State Farm review
Farmers 3rd Coverage 882 Policy bundling, homeowner, safe driving $520 Farmers review
USAA 4th Military 890 Customer loyalty, safe driving, deployment or storage on a military installation $250 USAA review
Acceptance 5th High-risk N/A Payment options, safe driving, customer loyalty Unknown N/A

Detailed List of the Best Non-Owner Auto Insurance

1. Best Non-Owner Auto Insurance Overall - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

Allstate is one of the top auto insurance companies in the country, with more than 90 years of experience under its belt. It’s the fourth-largest auto insurance provider in the industry in terms of premiums written.1 Even if you don’t own your own car, you can enjoy many of Allstate’s perks, including its highly rated customer service and its multitude of auto insurance discounts.

ProsWho It's Best For
  • pro
    Customers who can bundle their auto insurance policies with existing homeowners’ or renters’ policies
  • pro
    Someone who wants a company with excellent customer service
  • pro
    Individuals willing to sign up for paperless billing, automatic payments, or upfront payments
ConsWho It's Not Best For
  • con
    Military members, since no discount is available
  • con
    Customers who want the most affordable premiums
  • con
    Customers in New England, where Allstate ranks the lowest for customer satisfaction2

Bundled Policy Options

One of the reasons many people love Allstate is its bundling discounts. Even if you don’t own your own car, you can still bundle your non-owner auto insurance policy with another policy and save money.

You can save up to 25 percent by bundling your auto insurance policy with either a homeowners’ or renters’ insurance policy. So if your normal premium for non-owner auto insurance would be $500 per year, you could end up paying just $375.

Discounts for the Way You Pay

Allstate offers several discounts to help you save based on the way you receive and pay your bill. Here are the different ways you can reduce your premiums.

  • EZ pay plan: Set up an automatic deposit to pay your premiums.
  • Allstate eSmart: Sign up for paperless billing to view important documents online instead of receiving them in the mail.
  • Early signing: Sign up for your policy at least one week before it becomes effective.
  • FullPay: Pay your policy in full upfront instead of paying monthly premiums.
  • Responsible payer: Go at least one year without a cancellation notice for non-payment.

Highly Rated Customer Service

One of the areas where Allstate really stands out is its customer service. First, the company has a rating of 889 out of 1,000 in the nationwide J.D. Power 2022 U.S. Auto Claims Satisfaction Study. That leaves Allstate ranking fifth among all companies in this study.

It is important to note that when J.D. Power breaks down customer satisfaction by region, Allstate doesn’t rank highly everywhere. This is most notable in New England, where Allstate ranks last among companies rated.

Additionally, Allstate ranks well in the National Association of Insurance Commissioners (NAIC) Complaint Index Report. The NAIC takes complaints from insurance customers and uses them to compile this report.

According to this data, Allstate has a below-average complaint index for its private passenger insurance. Allstate’s index is 0.74 compared to the market average of 1.0. NAIC finds this number by dividing Allstate’s share of complaints by its auto insurance market share.3

2. Most Affordable Non-Owner Auto Insurance - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

State Farm is the largest auto insurance company on the market in terms of premiums written. It accounts for an impressive 16 percent of the U.S. market, and it’s easy to see why. Its affordable rates and financial strength make it a great option for drivers, including those looking for non-owner insurance policies.

ProsWho It's Best For
  • pro
    Drivers who want affordable policies
  • pro
    Safe drivers who qualify for one of State Farm’s safe driving discounts
  • pro
    Customers who want an insurer with excellent financial strength
ConsWho It's Not Best For
  • con
    Military members since no discount is available
  • con
    Customers who want accident forgiveness
  • con
    Drivers in Massachusetts or Rhode Island, where coverage isn’t available

Affordable Premiums

State Farm constantly ranks among the most affordable auto insurance companies, with an average insurance premium of $1,419 per year. That’s lower than every other provider on this list other than USAA, which isn’t available to most customers.

State Farm’s rates are also considerably lower than the national average. Our data shows the average annual premium across all companies is about $1,700, which is several hundred dollars more expensive than the average premium State Farm offers.

TIP:

Insurance premiums depend on location, and certain providers may be cheaper or more expensive in certain states. Get quotes from multiple companies to find the cheapest non-owner insurance.

Excellent Financial Strength

If you want a company with proven financial strength, look no further than State Farm. State Farm has a financial strength rating of A++ from AM Best, which is the highest rating possible. Only one other company on our list — USAA — has a financial strength rating as high as State Farm.4

So why is this important? If you file a claim on your non-owner insurance policy, you want to know that your insurance company can pay it out. The financially stronger the company is, the more likely it’ll be able to meet those financial obligations.

Savings for Safe Drivers

State Farm has several discounts available to help drivers save on their premiums.

  • Steer Clear: If you’re under the age of 25, you can get a discount using State Farm’s Steer Clear program. All you need is a valid driver’s license, no at-fault accidents or moving violations during the past three years, and to successfully complete driver training activities. Once you’re finished,  you’ll get a certificate of completion, which you’ll send to your agent.
  • Clean record: State Farm offers discounts when you maintain an accident-free driving record or go at least three years without a moving violation.
  • Driver safety course: Finally, if you’re a State Farm customer, you can get a discount for taking a driver safety course.
3. Best Non-Owner Auto Insurance for Coverage - Farmers

What We Like Most:

  • Keeps rates low after one accident
  • Rental coverage available if your car is out of commission
  • More coverage options for damaged parts

Farmers is another top provider of non-owner auto insurance, ranking seventh overall in the private passenger industry in terms of premium written. The company has excellent coverage options, as well as several ways for drivers to save.

ProsWho It's Best For
  • pro
    Drivers who want accident forgiveness
  • pro
    Customers in certain affinity groups, including current and former military members, employees of certain businesses, members of certain professional organizations, and more
  • pro
    Individuals who can bundle their Famers policies with their home, life, umbrella, or business insurance
ConsWho It's Not Best For
  • con
    Customers who want the most affordable premiums
  • con
    Drivers in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia

Great Coverage Options

Farmers has one of the best lineups of coverage options, and a couple of them are available even with non-owner auto insurance.

  • Personal umbrella: Farmers offers personal umbrella insurance to supplement your liability coverage. If someone sues you and the amount you owe exceeds your non-owner auto insurance limits, your umbrella policy will apply.
  • Accident forgiveness: Another coverage option non-owner policyholders can take advantage of is accident forgiveness. With this coverage, Farmers will forgive one at-fault accident for every three years you are accident-free. So if you get in an accident while driving someone else’s vehicle, you won’t see the premiums on your non-owner policy increase.

Discounts for Bundled Policies

Farmers has a better bundled policy discount than most providers. Most of the insurers on our list with a multipolicy discount only offer it when you bundle your home and auto insurance policies. State Farm is the only other exception; it gives you a discount when you bundle your auto insurance policy with a life insurance policy.

Farmers takes that one step further and offers a discount when you bundle your auto insurance policy with any other qualifying Farmers insurance policy. Qualifying policies include homeowners, life, umbrella, and small business insurance. This bundle discount applies even with non-owner auto insurance.

Savings for Affinity Groups

A final area where Farmers shines is its affinity group discounts. Farmers offers discounts to people who are members, employees, or retirees of certain businesses. Additionally, you can save by being a member of certain occupational groups or professional associations. Here are some examples of individuals that can save with Farmers:

  • Doctors
  • Firefighters
  • Graduates of certain universities
  • Members of certain fraternal organizations
  • Nurses
  • Police officers

TIP:

Even if you aren’t sure you’ll qualify for a Farmers affinity discount, it’s worth asking your agent. You might be surprised to find an organization you belong to makes you eligible for the discount.

Another discount Farmers offers that many insurers don’t is a military discount. You’ll get a discount on your premiums if you’re on active duty, active reserves, retired military, or an honorably discharged military veteran.

These discounts are especially beneficial when choosing Farmers insurance, since it’s one of the more expensive companies on our list for non-owner policies.

4. Best Non-Owner Auto Insurance for Military - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

USAA is a financial services company that caters to current and former military members and their families. And although it’s only available to military families, USAA is still the fifth-largest provider of auto insurance in the country in terms of premiums written.

ProsWho It's Best For
  • pro
    Current and former military members and their families
  • pro
    Customers who want a company with excellent financial strength
ConsWho It's Not Best For
  • con
    People who aren’t current military members, veterans, or their families
  • con
    Drivers who don’t want to become USAA members

Affordable Premiums

One of the most standout features of USAA insurance is its affordable premiums. Our internal data shows the company has an average annual premium of $1,151, which is more than $500 cheaper than the average across all companies.

Non-owner insurance policyholders can save even more. Because non-owner policies tend to be cheaper than standard auto insurance, you can expect your premiums to be only a few hundred dollars per year. USAA is the cheapest company on our list for non-owner car insurance quotes, with the average annual policy costing about $250.

As a USAA customer, you can take advantage of the many discounts available. You can save by bundling your auto insurance policy with your homeowners or renters insurance and by being a loyal member, meaning your parents were USAA members and you started your own policy.

Excellent Customer Service

USAA consistently ranks among the best when it comes to customer satisfaction. First, in the J.D. Power claims satisfaction study, USAA has a score of 890, placing it lower than just three other companies on the market: Amica Mutual, NJM Insurance Group, and Erie Insurance.

Additionally, USAA ranks well for customer satisfaction in J.D. Power’s regional studies. USAA has the highest customer satisfaction rating in all but one of J.D. Power’s regions. And in that region, California, J.D. Power was the second highest-ranking company behind Wawanesa.

Savings for Safe Drivers

USAA has several ways you can save money by being a safe driver, even if you have a non-owner policy.

  • Good driving record: The company gives you a safe driver discount if you’ve maintained a good driving record for at least five years.
  • Driving course: USAA offers a discount when you complete an approved defensive driving or basic driver training course.
  • SafePilot program: With SafePilot, you’ll download a mobile app that monitors your braking and phone usage while driving. It also detects potential accidents and allows the app to call 911 if needed. USAA will give you a 10 percent discount just for signing up for SafePilot. And depending on your driving score, you could earn an additional discount of up to 30 percent.
5. Best High-Risk Non-Owner Auto Insurance - Acceptance Insurance
acceptance insurance logo

What We Like Most:

  • Accepts high-risk drivers
  • Bundle with renters', homeowners', or pet insurance
  • Good for those with bad credit

Acceptance was created specifically to help high-risk drivers get coverage. The company offers policies in 17 states and provides coverage, including non-owner policies, to drivers who may not qualify elsewhere.

ProsWho It's Best For
  • pro
    Customers who have been denied coverage with other insurers
  • pro
    Drivers who require SR-22 certificates
  • pro
    High-risk drivers due to their driving histories or credit scores
ConsWho It's Not Best For
  • con
    Customers who want the most affordable premiums
  • con
    Individuals who want an insurance company with good financial strength (Acceptance only has a C++ rating with AM Best)
  • con
    Drivers not located in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Missouri, Nevada, New Mexico, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, or Virginia

Coverage for High-Risk Drivers

High-risk drivers, including those with at-fault accidents on their driving records or those with poor credit scores, can have a difficult time finding auto insurance coverage. Not only are your rates likely to be higher if you’re in that situation, but some carriers won’t cover you at all.

Acceptance was formed with the idea that even high-risk drivers deserve coverage. The company offers coverage to many types of high-risk drivers:

  • Drivers with bad credit
  • Drivers with many violations
  • Drivers with at-fault accidents
  • Young drivers
  • Senior drivers

Unfortunately, these factors will increase your premiums, even if you only need a non-owner auto insurance policy.

SR-22 Certificates Available

In some states, you may be required to provide what’s called an SR-22 certificate to your state’s Department of Motor Vehicles. This certificate is additional proof of minimum insurance coverage. Acceptance offers coverage to drivers who need these certificates.

Being a high-risk driver isn’t necessarily the same as needing an SR-22 certificate. In fact, many high-risk drivers don’t require one. Instead, most states require SR-22s of drivers who have broken a law. You might be required to have one if you’ve been found guilty of driving under the influence, negligent driving, driving without insurance, or driving with a suspended license, among other infractions.

An SR-22 is required for the driver, not the vehicle. As a result, even if you don’t own your own vehicle, you may still need an SR-22 to operate a vehicle. Because Acceptance offers both non-owner insurance and SR-22 certificates, this insurer can be a good option if you need an SR-22.

TIP:

Most drivers who need an SR-22 certificate must carry it for three years and pay a filing fee of about $25. If you lose your license for a period, your three years will begin once your license is reinstated.

Reimbursement for Tickets

Acceptance offers a ticket reimbursement program that saves you the hassle of paying for speeding tickets. When you sign up for TicketProof through Acceptance, you’ll have coverage for speeding tickets. Up to two times per year, the program will pay up to $100 for a speeding ticket. Additionally, TicketProof will pay for up to $200 in reimbursed legal fees and a $250 reimbursement if you’re required to attend traffic school.

Methodology

When selecting the best non-owner car insurance, we used three key methodologies:

  • Company information: When choosing the best non-owner car insurance companies, we look at our data to consider a company’s coverage and discounts, as well as ratings from third-party sources. For example, we look at customer satisfaction ratings from J.D. Power and financial strength ratings from AM Best.
  • Proprietary data: AutoInsurance.com has been in the industry for more than two decades. In those years of connecting customers with car insurance, we’ve collected millions of data points when people sign up for all types of policies, including non-owner auto insurance. While this data has  helped us identify some overall winners, it’s also taught us that not every company is right for every customer, especially when you need a unique policy such as non-owner coverage. As a result, we can help guide customers toward a provider that works for their unique situation.
  • Institutional knowledge: Thanks to our decades of experience, we have plenty of institutional knowledge of the industry overall, as well as each provider. Additionally, we consult Paul Ford, the president of insurance at AutoInsurance.com’s parent company, Centerfield. His decades of experience in the industry make him an invaluable resource.

Auto Insurance FAQs

Can you drive with non-owner car insurance?

Yes, you can drive with non-owner car insurance. Keep in mind, however, that your coverage won’t protect the vehicle itself. Instead, it only provides liability protection for outside parties’ property damages and bodily injuries.

How much does non-owner car insurance cost?

The cost of non-owner auto insurance is usually between $200 and $500 per year, with the average policy costing roughly $438. These policies tend to be cheaper than regular insurance policies. Not only does this type of insurance provide liability insurance only, but the people who typically purchase it drive less often.

What factors might affect my non-owner car insurance premium?

Factors that may affect your non-owner car insurance premium include your age, gender, driving history, credit score, location, and driving frequency. Many of these factors would affect your premiums for any other type of auto insurance.

What kind of insurance do you need to drive someone else’s car?

Non-owner car insurance is the type of insurance policy you would purchase if you regularly drive someone else’s car. However, depending on the situation, you may be covered by someone else’s car insurance when driving their vehicle. If that’s the case, as with a borrowed car, you will not need your own coverage.

Citations

  1. Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2021).
    https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings

  2. Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D. Power. (2022, Jun 13).
    https://www.jdpower.com/business/press-releases/2022-us-auto-insurance-study

  3. Consumer Insurance Search Results. National Association of Insurance Commissioners. (2023).
    https://content.naic.org/cis_refined_results.htm

  4. Search Results. AM Best. (2023).
    https://ratings.ambest.com/SearchResults.aspx