Do I Need Car Insurance if I Rent or Borrow Cars?
If you live in a large city or are just looking for a way to potentially save money, then not having to deal with owning a car can be much more convenient than having one.
However, if you plan to rent or borrow vehicles every now and then, you will still need to purchase auto insurance. Specifically named non-owner auto insurance.
Not sure what that means? We’re happy to help! At Berry Insurance, we frequently write non-owner policies for clients who don’t own vehicles, so we’re well versed on the ins and outs of this type of policy.
Keep reading to learn what non-owner insurance covers, why you need it, how much it costs, and more!
Table of contents:
- Do I need car insurance if I am only renting or borrowing?
- What is non-owner insurance?
- What does non-owner auto insurance cover (and not cover)?
- How much does non-owner insurance cost?
- What do I need to apply for non-owner coverage?
Do I need car insurance if I am only renting or borrowing?
Let’s get this out of the way: Yes. Absolutely yes.
If you are not covered by a standard auto insurance policy, but plan to be behind the wheel of a car, then you should strongly consider having the coverage provided by a non-owner policy. Without the coverage provided by this policy, you could find yourself responsible for paying any expensive claims or repairs entirely out-of-pocket.
What is non-owner insurance?
Non-owner insurance (also called named non-owner) is a type of car insurance policy designed for people who don’t own a car. So, if you plan to rent or borrow a friend’s vehicle, having non-owner insurance would cover any potential accidents.
This type of policy is considered a secondary coverage, meaning it is used to cover gaps that the borrowed car’s insurance or rental car’s insurance policies wouldn’t cover. This means that if you cause an accident and the car owner’s car insurance policy reaches its limits, your non-owner policy would then kick in to cover the rest (as long as the policy has the proper limits).
Want to know about how rental cars are covered by auto insurance, and if you need to purchase coverage through rental companies? Read more here: Rental Cars and Auto Insurance: What You Need to Know.
What does non-owner auto insurance cover (and not cover)?
When compared to standard auto insurance policies, non-owner insurance is fairly bare bones. It provides the essentials, but does exclude some key coverages that you should know about.
What does non-owner typically cover?
- Injuries caused to others while driving someone else’s car
- Property damage caused to others while driving someone else’s car
What does non-owner typically not cover?
- Damage to the car you borrow
- Medical expenses for yourself
- Roadside assistance/towing
- Rental coverage
- Coverage if your limits are less or equal to the original policy’s limit
How much does non-owner insurance cost?
Due to non-owner insurance having fewer coverages than a standard policy, the cost is usually much lower.
The exact cost of this policy will vary depending on factors like driving record, credit, risks, age, location, and the amount of coverage you’re looking for. But if we’re looking at the average cost for a non-owner policy in Massachusetts, you can expect to pay around $400-$700 a year ($33/$58 per month).
How much non-owner coverage do I need?
Ultimately this is up to you based on your individual risks and financial situation. Typically we would recommend a minimum of $250,000 bodily injury per person, $500,000 bodily injury per accident, and $250,000 property damage.
This is not the type of insurance you’d want to skimp out on. Non-owner insurance only pays out if your limits are greater than those on the primary vehicle owner’s policy, so you’ll always want to be sure you have enough so the insurance will be there when you need it.
What do I need to apply for non-owner coverage?
Most insurance carriers in Massachusetts will require you to have a MA license and at least six years of driving experience to qualify for a non-owner policy.
Additionally, you will likely also be required to bundle the non-owner policy with another insurance policy, such as home, condo, or renter’s insurance. This is a requirement for most carriers, as they won’t offer non-owner policies alone.
For more information on what you'll need for a non-owner policy, check out this article: What Do I Need to Get Named Non-Owner Auto Insurance in Massachusetts.
Protecting yourself while borrowing or renting
Before renting a vehicle or borrowing your roommate’s car, be sure to contact your trusted insurance agent or carrier about how you can obtain a non-owner policy.
Non-owner insurance provides you the liability protection that could wind up saving you from a significant out-of-pocket expense if your joy ride turns a bit more stressful.
Hoping to narrow down your options? Check out this guide on what we consider the top non-owner insurance carriers and why you should consider them: Top 4 Non-owner Auto Insurance Carriers in MA.