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Icon CheckLast updated: October 9, 2024

The Best Non-Owner Auto Insurance of 2024

Coverage for drivers who don’t own cars, but rent or borrow them frequently.

Best Non-Owner Insurance for Bundling
Allstate Logo 2023

Average Rates for a Non-Owner Policy
• Annual Premium: $750
• Monthly Premium: $63

Pros + Cons
Discounts when bundling with homeowners or renters policy
Discounts for paperless billing and automatic payments
X Not the lowest premiums

Read our Allstate review.

Best Affordable Non-Owner Insurance
State Farm Logo

Average Rates for a Non-Owner Policy
• Annual Premium: $314
• Monthly Premium: $26

Pros + Cons
Low premiums
Reputation for strong customer service via local agents
X Financial strength rating has recently decreased

Read our State Farm review.

Best Non-Owner Insurance for Coverage Add-Ons
Farmers Logo

Average Rates for a Non-Owner Policy
• Annual Premium: $683
• Monthly Premium: $57

Pros + Cons
Many coverage options
Military and affinity group discounts
X Not available in every state

Read our Farmers review.

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Don’t own a car but looking for insurance? Non-owner car insurance is a type of policy that provides liability coverage for drivers who don’t own a vehicle but occasionally drive borrowed or rented cars. This type of insurance is ideal for people who frequently rent cars, use car-sharing services, or borrow vehicles from friends or family, as it offers protection against potential liability claims if they cause an accident while driving a car they don’t own.

This type of insurance is usually available at a lower cost than other policies. In some states, you may be able to add medical payments or personal injury protection (PIP) to a non-owner policy. However, non-owner policies don’t provide comprehensive or collision insurance, which covers damage to the insured’s vehicle due to collisions and non-collisions. Nor do they usually include rental car insurance, roadside assistance, 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.

Learn more about the best liability-only car insurance and the best companies for high-risk drivers, including the best for DUIs.

Editor’s note (last updated June 21, 2024): We have updated this page to reflect the most recent pricing information, third-party ratings, and availability.

Blue CarBest Non-Owner Auto Insurance

  1. Allstate – Best Non-Owner Insurance for Bundling
    Whether you rent or own, Allstate offers a nice discount for bundling multiple policies that can decrease your premiums.
  2. State Farm – Best Affordable Non-Owner Insurance
    State Farm offers affordable annual premiums and reputable customer service thanks to its network of local agents.
  3. Farmers – Best for Non-Owner Insurance for Add-Ons
    In addition to basic liability coverage for non-owners, Farmers offers additional coverage options and savings for affinity groups.

Summary of the Best Non-Owner Auto Insurance

  1. 1.

    Best Non-Owner Auto Insurance Overall: Allstate

  2. 2.

    Best Affordable Non-Owners Insurance: State Farm

  3. 3.

    Best Non-Owner Insurance for Coverage Add-Ons: Farmers

  4. 4.

    Best Non-Owner Auto Insurance for Military: USAA

  5. 5.

    Best for High-Risk Drivers: Acceptance Insurance

Comparison of the Best Non-Owner Auto Insurance

Provider Best for J.D. Power Insurance Shopping Study Customer Satisfaction rating (out of 1,000)1 Average annual cost of non-owner auto insurance
Allstate Customers who want to bundle auto and home 664 $750
State Farm Drivers on a budget 695 $314
Farmers Add-ons 667 $683
USAA Military members 711 $461
Acceptance High-risk drivers N/A 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.2 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
  • pro
    Drivers in Florida
ConsWho It's Not Best For
  • con
    Military members (no savings or discount, unlike Farmers and USAA)
  • con
    Customers looking for the absolute lowest rates

Bundled Policy Options

One of Allstate’s strengths 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. According to Allstate, your renters premium could be as low as $4 monthly when bundling with an auto policy.

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.

Strong Offerings in Florida

In the 2024 J.D. Power Auto Insurance Study, Allstate ranked above-average for customer satisfaction in Florida—its score of 643 out of 1,000 outpaces the average by 18 points, and falls just behind State Farm and USAA.

Importantly, Allstate continues to offer homeowners insurance in Florida, a state hit hard by insurers pulling out of the market, deeming it too risky. Allstate’s offerings include flood insurance, which you can buy online through National General (which Allstate owns). You can also purchase a government-run National Flood Insurance Program (NFIP) policy through an Allstate agent.

2. Best Affordable Non-Owners 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 nearly 10 percent of the U.S. market, and it’s easy to see why. Its affordable rates 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 to work with a local agent
ConsWho It's Not Best For
  • con
    Military members since no discount is available
  • 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 rate of $314 annually for a non-owner policy, it’s the cheapest provider on our list.

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.

In terms of financial strength, State Farm fairs well. Though in recent years their AM Best rating has been downgraded from an A (Excellent) to a B (Fair),3 this rating still indicates State Farm has the financial resources to pay out claims to their customers. (The financially stronger the company is, the more likely they’ll be able to meet their financial obligations to customers and pay out their claims).

Savings for Safe Drivers

State Farm has several discounts available to help drivers save on their premiums, including non-owners.

  • 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 Insurance for Coverage Add-Ons - 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 premiums 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, Florida, 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

Like Allstate, Farmers has a strong discount for bundling multiple policies. Most of the insurers on our list with a multi-policy discount only offer it when you bundle your home and auto insurance policies. State Farm is the only other exception; it offers 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

Farmers shines above the competition with its affinity group discounts. It 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.

Unlike State Farm and Allstate, Farmer’s offers a military discount. This discount applies whether 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, after Allstate.

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 only 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
  • pro
    Renters and homeowners alike
ConsWho It's Not Best For
  • con
    People not affiliated with the U.S. military

Affordable Premiums

One of the most standout features of USAA insurance is its affordable premiums. After State Farm, it has the cheapest average premiums for non-owner insurance at $461 annually. If at any point you purchase a vehicle, USAA has some of the cheapest premiums for vehicle-owners as well, at an average of $1,322 annually for full coverage, the lowest of any provider on our list.

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 and Claims Service

USAA consistently ranks among the best when it comes to customer and claims satisfaction. In J.D. Power’s Auto Claims Satisfaction Study, USAA holds a score of 900 out of 1,000, tying for third and placing behind just two other companies: Amica Mutual and Erie Insurance.4

When it comes to customer satisfaction, USAA ranks highest in every single region on J.D. Power’s Auto Insurance Study. It also ranks highest for usage-based insurance programs.

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 for High-Risk Drivers - 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
    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

Non-owner car insurance can be particularly beneficial for high-risk drivers who don’t own a vehicle but still need to drive occasionally. This type of policy can help high-risk drivers maintain continuous insurance coverage, which is often required to reinstate a suspended license or to demonstrate financial responsibility to the state, even when they don’t own a car.

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

To identify the best providers for non-owner insurance, we evaluated companies based on four criteria.

  • Pricing (40%): We analyzed average annual premiums for non-owner insurance policies across different driver profiles nationwide. Our reviews account for average costs and potential savings opportunities based on factors like age, location, driving record, frequency of vehicle use, and available discounts specific to non-owner policies.
  • Customer Experience (30%): From getting quotes and purchasing policies to making payments and adjustments, we assessed the end-to-end customer journey for non-owner insurance. Top insurers were identified based on criteria like user-friendly digital services, customer service ratings, claims satisfaction scores, and other service quality metrics.
  • Claims Handling (20%): We evaluated companies’ claims handling processes by examining industry ratings like J.D. Power’s claims satisfaction scores and the National Association of Insurance Commissioners’ complaint index. Because drivers in this category don’t own vehicles, we weighted claims handling slightly less heavily.
  • Coverage Options (10%): We valued insurers offering coverage options particularly relevant to non-owner insurance policyholders. This includes flexibility in liability limits, the option to add personal injury protection or medical payments coverage, and the ability to easily convert to a standard auto policy if the policyholder purchases a vehicle.

By tailoring our evaluation to the specific needs of non-owner insurance seekers, we aim to provide a comprehensive assessment of the best providers in this niche market.

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 $300 and $700 per year, with the average policy costing approximately $552. 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. Half of Auto Insurance Customers Currently Shopping for New Policies, J.D. Power Finds. J.D. Power. (2024, Apr 30).
    https://www.jdpower.com/business/press-releases/2024-us-insurance-shopping-study

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

  3. AM Best Downgrades Credit Ratings of State Farm General Insurance Company. AM BEST. (2024, Mar 28).
    https://news.ambest.com/pr/PressContent.aspx?refnum=34559&altsrc=2

  4. Auto Insurers Manage Customer Expectations as Repair Cycle Times Double in Two Years, J.D. Power Finds. J.D. Power. (2023, Oct 26).
    https://www.jdpower.com/business/press-releases/2023-us-auto-claims-satisfaction-study