Do I Need Car Insurance If I Don’t Own a Car?
FREE Car Insurance Comparison
Compare quotes from the top car insurance companies and save!
Secured with SHA-256 Encryption
UPDATED: Mar 13, 2020
It’s all about you. We want to help you make the right coverage choices.
We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.
Insurance Q&A: “Do I need car insurance if I don’t own a car?”
Well, like all things in the insurance realm, yes and no. Individual circumstances will determine whether or not you’ll have the need for an auto insurance policy and what type of coverage to buy.
The answer also depends on your personal financial situation and risk appetite.
It is generally a good idea to have a car insurance policy in place if you don’t own a car but drive regularly.
Sure, you may have some coverage while operating another person’s car, but your personal circumstances might mean you need a named non-owner insurance policy.
This particular type of policy is referred to as secondary coverage. In other words, if you cause an accident, the policy covering the car you borrowed will be enacted, or triggered, first.
But imagine if the car you borrowed has low liability limits and you severely injure and/or even kill somebody? You would be financially responsible for money awarded to the victim above the limits of the policy in force on the car!
With no additional insurance, you could be paying for the accident for the rest of your life.
Additionally, what would happen if you borrow a car that has no insurance coverage or carries restricted or limited coverage and you get into an accident? The outcome could be the same as discussed above. You are personally responsible for ALL damages awarded to the injured party.
Check out who is covered under a typical car insurance policy and when you are not covered in the case of an accident.
Policies that have physical damage coverage also cover anyone in the above referenced situations.
If you decide to get a policy, be sure to obtain multiple online quotes to ensure you’re getting a good deal.