What Is Non-owned Auto Liability Insurance?

Apr 12, 2023 | Business Insurance

A liability policy for persons who drive but do not own a car is called non-owner auto insurance. If you frequently rent or borrow a car or need to apply for an SR-22 without a car, a non-owner policy is a reasonably priced way to get liability auto insurance coverage. Auto insurance premiums for non-owners are frequently 5% to 15% less expensive than those for a normal policy. Non-owner insurance isn’t the best option for many people, though, including those who live with a car owner or who would otherwise need to be added to the primary policy of the vehicle.

When you are operating a vehicle that you do not personally own, non-owner insurance, also known as non-drivers’ insurance, offers liability coverage for physical injury and property damage. As a result, if you were to be involved in an accident with another driver and be determined to be at fault, your non-owner’s insurance policy would protect you from lawsuits just like a standard liability policy.


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A non-owner auto insurance policy can contain the following in addition to liability coverage, which pays for injuries and property damage to the opposing party in the event of an accident:

Payments for medical expenses or coverage for personal injuries

Insurance Coverage for Uninsured or Underinsured Motorists

Renter’s Liability Insurance

A non-owner auto insurance policy won’t offer comprehensive or collision coverage as no vehicle is associated with it. As a result, it won’t pay for harm to the vehicle you’re driving, medical expenses, or other expenses related to injuries you experience in an accident.

Non-Owned Auto Liability Insurance Benefits

Whatever the sector you work in, it’s probable that your staff members will need to drive a car to do jobs like client visits, product delivery, and product pickups. Larger corporations frequently offer their employees access to insured company vehicles for daily use, but small and medium-sized businesses sometimes do not have that luxury.

Your firm may be responsible if workers use their personal automobiles for work-related purposes and have an accident. The following advantages of non-owned auto liability insurance include insurance, horst insurance, non-owned auto, business auto, employee cars, and company cars.

In response to liability claims: 

Non-owned auto liability plans transfer the risks to your insurer if employees are involved in an accident while operating their own or a rented vehicle for business purposes. It’s crucial to keep in mind that this coverage covers your company, not the individual operating the car.

Legal cost reimbursement:

Legal expenses can quickly mount up if one of your employees is involved in an accident and you are sued. Non-owned auto liability insurance enables businesses to pay for defense costs after a claim.


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Protection that considers employees of all statuses: 

Whether your staff members are full-time, part-time, or temporary workers, hired and non-owned auto liability plans can offer coverage for them all. This is especially helpful for businesses that add personnel when business is brisk.

Additional coverage: 

If your company permits employees to use their own automobiles for work-related purposes, it’s likely that your general liability and auto policies don’t provide enough security. Non-owned auto insurance provides special coverage that is frequently not included in conventional plans, protecting your company from liability in the event of an accident.

Flexibility: 

Without non-owned auto insurance, your company can only give employees access to insured company cars. However, with the correct policy, your company can permit employees to use their own automobiles for work-related travel or to rent cars for business trips.


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