How to get car insurance without a car

What a non-owner car insurance policy covers

A non-owner policy is liability insurance for a driver who does not own a car. The Texas Department of Insurance describes it as a policy that pays for damages and injuries you cause to other people while driving a borrowed car, and notes it does not pay for your injuries or for damage to the car you are driving.^[1] Nevada's regulator calls it an operator's policy that protects the driver, not the car.^[2]

Nevada says plainly that a policy issued only for non-owned vehicles is not proof of insurance for vehicles you own and cannot be used to register them.^[2]

Who needs car insurance without owning a car

• People who borrow cars often and want their own liability limits on top of the owner's.
• Frequent renters who would rather not buy the rental counter's liability coverage.
• Drivers reinstating a license who must file proof of insurance. California's DMV may ask for an SR 22 on a broad coverage or owner's policy.^[3]
• People between cars who want to avoid a gap in coverage, which can raise future prices.

SR-22 without a car

An SR-22 is not a type of insurance; it is a filing in which your insurer certifies to the state that you carry the required liability coverage.^[4] Nevada requires it after an uninsured accident and expects it to be kept continuously for three years.^[2] If you have no car, a non-owner policy is the usual way to carry it. Florida is stricter after a DUI: the law requires 100/300/50 limits for at least three years.^[5]

How to buy a non-owner policy

1. Confirm you do not own a car and no one in your household has a car you regularly drive; regular access usually means you belong on that policy instead.
2. Ask several insurers or an agent for a non-owner quote; not every company sells one online.
3. Pick limits above your state minimum if you can.
4. If a court or DMV requires it, ask the insurer to file the SR-22 and keep the policy active for the full period.

Non-owner policy limits and what to choose

A non-owner policy should carry at least your state's minimum liability limits, and most drivers are better off higher. When you borrow a car, the owner's insurance usually pays first and your non-owner policy pays on top once the owner's limits run out; if the owner's policy does not apply, yours is the only coverage. That makes the limits you pick the real ceiling on what is paid for someone you injure. Our state table lists every state's minimum; a common step up is 100/300/100, which in Texas's regulator survey cost only about 16% more than the minimum on an owner policy.^[1]

What a non-owner policy does not do

• It does not insure a car you own or one in your household that you drive regularly. Insurers expect regular access to be on that car's own policy.
• It does not pay to repair the borrowed or rented car. For that you need the owner's collision coverage or a rental company damage waiver.
• It does not pay your own medical bills unless you add medical payments or personal injury protection where the insurer offers it.
• It does not make driving legal without a license. If your license is suspended, the policy and SR-22 are steps toward reinstatement, not permission to drive.

Already own a car but have no license? See car insurance without a license. To estimate an owner policy when you buy a car, use the car insurance calculator.