Non-owner car insurance
Non-owner car insurance is auto liability coverage for a driver who does not own a car. It can pay for injuries or property damage you cause while driving a qualifying borrowed or rented car, up to your limits and subject to permission, regular-use and business-use rules. It generally does not cover the car itself.
Also called: non-owners policy, named non-owner coverage, non owner policy
A non-owner policy follows you as a driver rather than a vehicle. The declarations page names you and shows liability limits but lists no car, and the coverage pays other people for injuries or property damage you cause, up to those limits. Damage to the borrowed or rented car you were driving falls outside it and has to come from the owner's coverage, a rental-company waiver or another physical-damage product.
How a non-owner policy pays after an accident
Liability coverage pays the people you injure or whose property you damage, and it stops at your limits. New York's minimum limits are $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage, according to the New York Department of Financial Services (opens in a new tab). Say you carry those minimums, cause $35,000 of bodily injury to one person, and do $18,000 of property damage.
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Bodily injury to one person | $35,000 |
| Bodily injury limit per person | $25,000 |
| Property damage caused | $18,000 |
| Property damage limit | $10,000 |
| Insurer pays ($25,000 + $10,000) | $35,000 |
| Unpaid beyond the limits ($10,000 + $8,000) | $18,000 |
The insurer pays the first $35,000. The remaining $18,000 can fall to you, the vehicle owner's insurer or another insurer, depending on which policy pays first, whether you had permission, whether the car was regularly available to you, and the exclusions. These figures use statutory minimums, not an average claim.
Limits and add-ons that change what the policy pays
Bodily injury liability and property damage liability limits are the main choice. New York requires $10,000 of property damage coverage, and the New York Department of Financial Services (opens in a new tab) lists $15,000, $25,000, $50,000 and higher limits as generally available. Some policies use one combined single limit instead, with $100,000, $300,000 and $500,000 given as examples. Higher limits generally raise the premium.
Other coverages depend on the state. Connecticut requires uninsured motorist and underinsured motorist coverage of at least $25,000 per person and $50,000 per accident, according to the Connecticut Insurance Department (opens in a new tab). New York requires $50,000 of basic No-Fault benefits and uninsured motorist coverage at its minimum liability limits, with supplementary SUM coverage available. Deductibles generally do not apply to bodily injury liability, though one can apply to optional physical-damage coverage if the policy includes it.
An SR-22 is a filing attached to a policy, not a separate coverage. California recognizes an operator's policy covering only cars the driver does not own for SR-22 purposes, according to the California Department of Motor Vehicles (opens in a new tab). Our Connecticut SR22 insurance guide covers the filing in that state.
Where you see non-owner coverage
The term belongs to auto insurance. You can meet it on a quote that describes you as a non-owner, on a declarations page with limits but no scheduled vehicle, or in an insuring agreement that covers liability for a "non-owned automobile." Exclusions address cars that are owned, furnished, regularly available, rented or used for business. New York uses a named non-owner coverage endorsement, PP 03 30, according to the New York Department of Financial Services (opens in a new tab). It also appears on renewals, binders and claim letters that ask whether you had permission. A home or renters policy can cover some belongings inside a car, but it does not replace non-owner liability coverage.
How Connecticut and New York rules apply
Connecticut sets the minimums a qualifying policy has to meet. Conn. Gen. Stat. § 14-112 (opens in a new tab) requires financial responsibility of $25,000 for injury or death of one person, $50,000 for more than one person in one accident, and $25,000 for property damage. Minimum auto policy provisions, including bodily injury, property damage, medical payments and uninsured motorists coverage, are set by regulation under Conn. Gen. Stat. § 38a-334 (opens in a new tab), and Conn. Gen. Stat. § 38a-335 (opens in a new tab) requires a conspicuous statement about coverage for rented private passenger vehicles.
New York defines when a borrowed car counts. 11 NYCRR 60-1.1 (opens in a new tab) requires qualifying owner's policies to cover incidental, non-business use of a car that you and your household do not own, that is not furnished or available for regular use, and that you drive with the owner's permission and within its scope. Occasional or infrequent use generally qualifies and regular use does not, according to a New York Department of Financial Services opinion (opens in a new tab). Registering a car you own takes proof of financial security for that car under N.Y. Vehicle and Traffic Law § 312 (opens in a new tab), which a non-owner policy does not provide unless it says so.
Questions to ask an agent or insurer
- Does this policy cover liability when I drive a borrowed or rented car, and is it primary or excess? The owner's policy, the rental agreement and your policy can have different rules about which pays first.
- What are my bodily injury and property damage limits, and what would be left if damages exceed them? Payments stop at the limits, and anything above them can come back to you.
- Does the policy cover damage to the car I am driving? Liability coverage pays others, so collision damage waivers and other physical-damage protection are separate questions.
- Does the policy carry an SR-22 or other filing, and how long must it stay active? If the policy cancels or does not renew, the filing can stop satisfying the state, which can affect your license or registration.
- Does my planned driving count as regular use, business use, delivery, rideshare or passenger-for-hire use? Those uses can fall outside incidental non-owner coverage and need a different policy or endorsement.
Frequently asked questions
Short answers on rentals, household cars and SR-22 filings.
Does non-owner car insurance cover a rental car?
It may provide liability coverage while you rent a qualifying car. It generally does not pay for damage to the rental itself. Check the policy, the rental agreement, any collision damage waiver, the vehicle type and how long you are renting.
Can I use a non-owner policy for a household member's car?
A car owned by someone in your household, or one regularly available to you, may not qualify as a non-owned car. A claim can be denied or limited, and you may need to be listed on the owner's policy instead.
Can I get an SR-22 without owning a car?
Yes, in states that accept an operator's or non-owner policy for the filing. California accepts the SR-22 certificate with an operator's policy for qualifying DMV actions.
Is non-owner insurance the same as an SR-22?
No. Non-owner insurance is the liability policy, and the SR-22 is the certificate filed with the state showing that a qualifying policy exists. The filing does not replace the policy.