Do I need car insurance if I don’t own a car?
You need car insurance if you don’t own a car but plan on borrowing and driving a vehicle on a regular basis. It is generally a good idea to have a car insurance policy in place if you don’t own a car but borrow one regularly in case that driver does not list you on their insurance. Learn more and find non-owner car insurance quotes here with our free tool.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jan 31, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
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.