Non owner liability insurance is a special type of car insurance that covers expenses relating to bodily injury and property damage that you might cause while driving a car you do not own. This includes rental cars as well as borrowed vehicles that are involved in an auto accident.

Who Needs Non Owners Insurance – and When?

Generally, non owners insurance is purchased by people who live in areas with extensive mass transit systems. They do not own vehicles because there is no need to drive on a daily basis. However, they may occasionally take trips that require driving a rental car or borrowing a relative's vehicle.

Although it's true that places where you can rent a car offer their own insurance, keeping this type of coverage on a steady basis is often a more convenient option. Depending on your driving history, premiums can be as low as a few hundred dollars per year.

Another good reason to purchase non owner liability insurance is if you do not own a car at the moment, but intend to purchase a vehicle in the future. Having this type of auto insurance policy gives you an active insurance history that other companies can see when you go to purchase a policy for your own vehicle. This can result in cheaper insurance rates.

If your state requires you to have SR-22 insurance as the result of a conviction for driving while under the influence of alcohol or drugs or committing another offense, you can obtain a non owners SR-22 policy to fulfill these requirements without personally owning a vehicle. Premiums will be higher in this case, however, as insurance companies will consider you a higher risk for potentially being involved in a car accident.