Who Buys Non-Owner Car Insurance?

Non-Owner Car Insurance covers people who do not own a vehicle but frequently use one. But are there a lot of people who drive other’s cars? More so, are these people insured? In this blog, we’ll explore if agents should focus on Non-Owner’s Insurance or not.  

Non-Owner Car Insurance covers people who do not own a vehicle but frequently use one. Whether you’re borrowing or renting a car, a non-owned auto insurance would pay for injuries and damages in case of accidents. According to TDI, a “non-owner’s insurance pays for damages and injuries you cause when driving a borrowed/rented car. But it doesn’t pay for your injuries or damage to the car you are driving.” 

But are there a lot of people who drive other’s cars? Statista reports that there are 34.91 million rental car users in the US, as of 2019. The report estimates the growth of this number to 35.7 million in 2020. 

In this blog, we’ll explore the things that agents should focus on while selling non-owner’s insurance.

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Non-Owner Car Insurance Coverage

Non-Owner Car Insurance includes coverage as mandated by the state. This coverage will protect only the most basic claims. But you always have the option to apply for a policy with higher limits.  


If someone gets involved in an accident while driving a borrowed car, the vehicle owner’s car insurance pays out first. Only if the owner’s policy is insufficient to cover the damages, the non-owned auto insurance will work as secondary coverage.  

Here are some typical claims that non-owner car insurance will pay for: 

  • Bodily Injury: The insurance will consider any medical costs. Moreover, it will also reimburse lost wages and legal fees.  
  • Property Damage: If the driver is responsible for any property or vehicle damage, the insurance will cover it. But it will not repair the vehicle you’re driving.  
  • Uninsured/Underinsured Motorist Protection: The policy pays out if you’re injured while being hit by a driver without insurance or insufficient insurance. Like when a truck driver without a truck insurance hits you.  

Non-owned auto insurance does not assign a specific vehicle in the policy. So, unlike car insurance, non-owner’s insurance does not cover collision damages. So, if lenders get into collisions, the policy won’t cover damages to the car they are driving or the medical bills. 

How Does A Non-Owned Auto Insurance Work?

Non-owned auto insurance covers a single individual. So, the policy will only cover the one who purchased the policy, not the insured’s spouse or anyone else. 

Usually, non-owner car insurance does not have a deductible. This means the insured doesn’t have to pay any money before the insurance starts paying for coverage. The reason is that non-owner’s insurance is a secondary coverage utilized only if the car owner’s primary coverage is insufficient.  

For example, let’s say an insured got into an accident while driving their friend’s car. The friend had insurance for property damage worth $15,000. If the insured caused $20,000 of damage, the insured would be responsible for the excess $5,000 in damages. The insured’s non-owner policy would cover this amount if it included at least $20,000 of property damage.  

The non-owner’s insurance would not pay any coverage if the friend’s insurance were enough to cover all damage worth $20,000. 

Finding Your Target Market 

Conditions that demand Non-Owned Auto Insurance: 

  • Not all license holders have vehicles. Some states demand such people to require non-owner’s insurance on license renewal. 
  • Some car-sharing services also require such type of insurance.  
  • Not all people who frequently use other’s cars get insured. Sadly, they face higher rates when purchasing a vehicle. To avoid such situations, they can get non-owned auto insurance.  
  • People who rent vehicles are vulnerable to auto related risks. Liability coverage can drain significant money from their pockets. You can deter exposure to such dangers through a non-owned car insurance.  
  • Value Penguin also explains that multiple traffic violators need SR-22 non-owner insurance. It is a policy required by authorities, for people charged with numerous traffic violations, to maintain their license.  
  • Companies provide vehicles for their employees. The company policy reimburses most claims made during the task of a job. But claims made outside office hours should be covered by the employee. To divert this risk, they can buy a non-owner’s policy.  

Some Tips to Generate More Leads in Non-Owner Car Insurance Policy 

  1. Try to get in contact with the license providers in the state. They can provide accurate data on license renewal statistics. Filter out license holders without vehicles with whom you may have a high chance of sales. 
  2. Contact car-sharing platforms can as they may require their customers to buy this policy. 
  3. Develop networks in the car rental industry. Collaborate with such companies and sell the policy through their help. 
  4. Tie-up with second-hand car dealers. They know who is selling cars, and the sellers need non-owners insurance.  
  5. You can also ask your B2B clients to provide you with employees who lack insurance. 

Neither carriers nor agents advertise non-owner car insurance like bike insurance, which is significantly marketable In a world where car-sharing and using rental cars are popular, nonowners insurance can sell exponentially too. It’s up to the agents how they communicate the essence of non-owner’s policy to the clients. 

Did we miss out on anything? What are your thoughts on Non-owner’s Insurance? Let us know in the comments down below. 

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

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