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If you don’t own a car but still drive, these companies can protect you.
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.
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.
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.
Best Non-Owner Auto Insurance Overall: Allstate
Most Affordable Non-Owner Auto Insurance: State Farm
Best Non-Owner Auto Insurance for Coverage: Farmers
Best Non-Owner Auto Insurance for Military: USAA
Best High-Risk Non-Owner Auto Insurance: Acceptance 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 |
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.
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.
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.
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
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.
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.
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.
State Farm has several discounts available to help drivers save on their premiums.
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.
Farmers has one of the best lineups of coverage options, and a couple of them are available even with non-owner auto insurance.
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.
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:
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.
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.
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.
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.
USAA has several ways you can save money by being a safe driver, even if you have a non-owner policy.
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.
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:
Unfortunately, these factors will increase your premiums, even if you only need a non-owner auto insurance policy.
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.
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.
When selecting the best non-owner car insurance, we used three key methodologies:
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.
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.
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.
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.
Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2021).
https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings
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
Consumer Insurance Search Results. National Association of Insurance Commissioners. (2023).
https://content.naic.org/cis_refined_results.htm
Search Results. AM Best. (2023).
https://ratings.ambest.com/SearchResults.aspx