How much is non-owner car insurance?

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Even if the vehicle belongs to someone else, most states require drivers to carry a minimum amount of car insurance. If you get caught driving without insurance, you could face steep penalties. Plus, you’ll be unprotected against financial losses after an accident. 

Non-owner car insurance gives drivers the coverage they need to get behind the wheel without owning a vehicle. On average, drivers pay $325 annually for non-owner car insurance across the nation, but costs vary dramatically from state to state.  

We explore what you need to know about this specialized type of car insurance and highlight some worthwhile non-owners car insurance providers. 

What is the cost of non-owner car insurance?

The average cost of non-owner car insurance is $325 per year, but because rates vary significantly by state, you could end up paying much more or less than this average.

Besides your location, other factors also impact your car insurance costs. Your driving record, age, gender, and how frequently you drive a borrowed vehicle all play a role in determining your rates.

How much non-owner car insurance costs by state

Drivers paying for non-owner car insurance pay significantly different prices across the nation. Rates vary by state due to factors specific to each region, such as the number of natural disasters within a region and the crime rates within a state. More natural disasters and higher crime rates often lead to higher insurance premiums. 

The differences can be dramatic. For example, drivers in Iowa, South Dakota, Nebraska, and Idaho pay an average of less than $200 per year for non-owner car insurance. Meanwhile, drivers in Michigan, Rhode Island, and Florida pay an average of over $500 per year for the same coverage. 

Keep in mind that where you live isn’t the only factor. Average non-owner car insurance costs vary by coverage levels, too. 

The table below shows how much non-owner car insurance costs in each state. 

Non-owner car insurance costs by age

Age greatly impacts car insurance premiums, and non-owner car insurance is no different. In general, teens and young adults pay the most for car insurance. However, seniors may experience an increase in their rates after years of enjoying lower premiums.

Here are the rates you can expect based on your age. 

Average cost of non-owner car insurance for teens

New drivers have the least experience behind the wheel, which translates into higher car insurance rates. Sixteen-year-olds face the highest non-owner car insurance costs, with an average annual premium of $832. As teens gain experience on the road, the average rates drop. By age 19, teens pay an average of $552 per year for non-owner car insurance. 

The table below breaks down the average cost of non-owner car insurance by age for teens. 

Average cost of non-owner car insurance for young adults

Compared to older adults, young adults face relatively high car insurance premiums. But luckily, the average rates drop a bit from the teenage peak. At age 20, the average driver pays $503 for non-owner car insurance every year. But by age 24, the average annual cost is down to $381.

The table below breaks down the average cost of non-owner car insurance for young adults. 

Average costs of non-owner car insurance for adults

After reaching age 25, drivers start to see their car insurance rates fall to an average of $357 per year for a non-owner policy. The decline continues for decades, with 60-year-old drivers paying an annual average of $311 for non-owner car insurance.

The table below breaks down the average cost of non-owner car insurance for adults. 

Average cost of non-owner car insurance for seniors

Seniors start to see their rates tick back up. This is because insurers view seniors as higher risk due to age-related factors that affect driving ability, such as slower reaction times and declining vision. Sixty-five-year-olds see their average rates climb to $321 per year. By age 75, drivers pay an annual average of $366 for non-owner car insurance. 

The table below breaks down the average cost of non-owner car insurance for seniors. 

Average cost of non-owner car insurance from top insurers

Different insurance companies have different ways of determining premiums, meaning you can find significantly different rates by shopping around. Seek non-owner car insurance quotes from multiple insurers to ensure you’re getting the best deal.

Our data show that State Farm offers the cheapest non-owner car insurance, costing an average of $262 annually. USAA is the most affordable option for military members and their families. 

The table below highlights the average cost available from top non-owner car insurance providers. 

The cheapest cities for non-owner car insurance

The city you call home matters to your car insurance company. That’s because your ZIP code is tied to traffic congestion measures, crime rates and more. Insurers take all of these details into account. 

The cities with the cheapest rates for non-owner car insurance include Corydon, Iowa; Veblen, South Dakota; and Bassett, Nebraska. 

Below, you’ll find the cheapest city for non-owner car insurance in each state.

How is non-owner car insurance different from non-owner SR-22 insurance?

Non-owner car insurance is a good option for those who don’t own a vehicle but have a driver’s license. This optional coverage is useful if you drive occasionally, though it may not be required to report your coverage to the state.

In contrast, SR-22 non-owner car insurance is required for drivers with serious offenses who want to get behind the wheel. 

“Non-owner SR-22 insurance provides the SR-22 form for those with serious offenses who need to prove minimum coverage to legally drive,” says Ryan McEachron, owner of ISU Insurance Services. “From experience, non-owner insurance is affordable and useful if you have a good driving record but occasionally borrow vehicles. However, for those with a poor record who need an SR-22, non-owner SR-22 insurance may be the only option to drive legally again.”

When to buy non-owner car insurance

“I would recommend non-owner car insurance if you frequently rent vehicles or borrow cars from others but do not own your own vehicle,” says Christian Strange, president of Strange Insurance Agency. 

A non-owner car insurance policy also shields you from the high costs of a traditional policy or buying a collision damage waiver at the rental car counter.

Strange continues, “Non-owner car insurance provides liability coverage when driving vehicles you do not own, without the high cost of traditional auto insurance. For example, a client of mine needed to rent a car for a two-week business trip but did not own his own vehicle. He purchased a non-owner policy to cover liability costs in case of an accident during his trip. The non-owner policy cost a fraction of an annual auto insurance premium.”

How to save on non-owner car insurance

Getting quotes from multiple insurance companies before committing to a policy is one way to lock in savings. This ensures that you get the best rate available for your situation. 

Understanding the cost of non-owner car insurance is key to ensuring you’re adequately covered without overspending. By comparing quotes and knowing the factors that influence rates, you can find the right policy that fits your needs and budget.

Methodology

Insure.com gathered non-owner car insurance rates across all the states with the help of Quadrant Information Services. Non-owner insurance rates are based on the profiles of 40-year-old male and female drivers with a good credit score and a clean driving record.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.