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Ever Heard of Nonowner Auto Liability Policies?

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I hadn’t until I read about nonowner auto liabilities policies in a Baltimore Sun article this past weekend. Nonowner auto liability policies are for folks who don’t have cars but find themselves renting them often enough that having their own insurance is better than taking the one offered by rental companies. According to the Insurance Information Institute, it costs only about $200-$300 a year and is a better alternative than the often $20+ a day prices from rental companies. By comparison, my insurance through Geico, which only covers liability, costs me $605 a year for a 2003 Toyota Celica. Nonowner Auto Liability policies are liability only, which means they only cover damage to the other car and not your own. Luckily, if you rent the car with a credit card, your credit card might offer a collision benefit (which one reason why you should decline the insurance offered by the rental company and rent with a card that offers insurance).

A brief look at on the Geico website didn’t yield any information about nonowner auto liability policies and when I tried with Kanetix (an auto insurance search engine I used when I tried to figure out the relationship with personal information and insurance rates) it wouldn’t let me continue without putting in vehicle information. I think that if you want to take advantage of this you’ll probably have to call up the insurance company directly.

Has anyone heard of this before or know someone who has used it? Seems like a good idea for people who live in cities.

{ 6 comments, please add your thoughts now! }

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6 Responses to “Ever Heard of Nonowner Auto Liability Policies?”

  1. buttercrud says:

    I have a non-owner policy. It’s $195/yr through Travelers. Combined with a credit card that covers collision, you’re all set. It only takes about 8 rental days here in NYC to pay itself off (I average about 30 rental days a year.) It IS perfect for city folk.

  2. lisa says:

    Does it provide any coverage if you are borrowing someone’s car as opposed to just a rental?

  3. Scott Kustes says:

    I’ve never heard of non-owner policies, but I wanted to comment on your $600 a year for liability only. Holy cow that’s high! Have you shopped around? Do you have a poor driving record or are you under 25? My wife and I just shopped around and ended up with a bit over $900 for full coverage on both a 2001 Cougar and a 2002 Millenia.

    Scott Kustes
    Modern Forager

  4. asm says:

    Yes, I have non-owner auto insurance from Direct General in TX. It cost me $240+ for 6 months (about $45+). This is very cheap, if you are renting car or borrowing friend’s car. This company offers only minimum liability (20/40/15). If you are experience driver with no tickets, then you will get under $200 for 6 months. Moreover, I checked with other insurance companies like Geico (about 450+ for 6months). But there are certain restriction with non-owner auto policy , if you borrow friend’s car. you can check with insurance agent.

  5. styleosophy says:

    I don’t own a car, I rent a car for personal and business reasons about 100-150 days a year. I cannot see the purpose in purchasing a car, because it would sit on the street at least 20 day’s out of the month, while I go to work (I catch the bus-I live in Chicago). But I am glad I came across this post, becuase I found it difficult to find such insurance. I had my brother add me to his car insurance (he owns a car), and it negates the car rental insurance fees, along with using the credit card, but I was also searching for something like this.

  6. styleosophy says:

    Two more perks of car rental, depending on the rental agency, they have loyalty programs. You can choose to receive free days, or airline miles with some agencies. Also, you get that new car feeling every time you get a rent a car! Sometimes, I feel like picking up a Volvo, or Dodge Charger. Other days, a convertible or an HHR.


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