How Does Non-Owned Auto Insurance Work?

Do you regularly avail of vehicle rental services or borrow your friend’s car to commute? If you are doing this for over 3 to 4 days a week, maybe it is time to consider buying non-owner car insurance.

To simplify, it is insurance coverage for a car you use but do not own. The liability policy can help you pay off any physical injury or property damages sustained while you were behind a borrowed car’s steering wheel.

As a policyholder who needs to rent or borrow cars to commute daily, you can save yourself from many financial hassles by purchasing this policy. Well-known Canadian insurance companies like Surex can help you learn more about the coverage and even buy one with beneficial guarantees.

Let us delve into the insurance’s working and find out how it might fit your needs.

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What Is Non-Owner Auto Insurance?

A non-owner insurance auto policy is liability coverage that can compensate you if you face an accident while driving a borrowed or a rented car. The vehicle in question should be owned by someone else to fit this criterion.

If the owner’s car faces a road mishap and you are at fault, their policies might not cover substantial expenses. In this scenario, if you own non-owner auto insurance, it can pay off property damages and physical injuries.

Who Needs This Insurance?

If you use a rented or borrowed car to commute, non-owner car insurance is the perfect risk management tool. Every licensed driver in Canada has the option to get non-owner car insurance. Of course, if the lender is your family member, there is no need to get one without consulting them first.

If your daily commuting looks something like this, then this might be the right coverage for you:

  • If you need a rental car to commute almost daily
  • You use car-sharing services
  • Your car is old, so you are using a friend’s vehicle to get to work.

Many rental car companies offer rental car coverage as you are fully responsible for any damage to the car. You can also opt to pay to sign a collision damage waiver instead. If the company charges you per day, the amount is likely to put a dent in your pocket. Instead, go for the non-owner insurance policy for more affordable, all-around coverage.

Types Of Coverages Under Non-Owner Car Policy

Non-owner car coverages differ slightly from regular car insurance. All property damages and physical injuries to a third party through the policyholder falls under this policy’s payments. However, it does not include passengers under the physical injury coverage.

Many insurance companies do allow you to add the following policies to your coverage:

Personal Injury Protection (PIP)

PIP coverage compensates for medical expenses to treat physical injuries from an accident, irrespective of who is at fault. Both the non-owner car policyholder and the passenger can receive this benefit. Lost wages can also be a part of the PIP policy.

Underinsured/Uninsured Motorists Coverage

It is helpful if the non-owner of a car faces an accident and the driver at fault does not have a sufficient car insurance policy in their name. The underinsured/uninsured auto policy also comes in handy for hit-and-run cases.

Types Of Coverages NOT Under Non-Owner Car Insurance

The non-owner car policy does not include the following types of insurance under its coverage:

Collision Coverage

Collision coverage pays for damages that the car incurs from an accident. However, non-owner car insurance does not have this policy under its features.

Comprehensive Coverage

Comprehensive car insurance covers damages due to fallen objects, fire, storm, theft, and vandalism. Unfortunately, it does not form a part of non-owner coverage.

Roadside Assistance

Non-owner car insurance does not cover towing services, jammed start button, or flat tire expenses.

Understanding Non-Owner Car Insurance Premium

The criteria for non-owner car insurance coverage’s premium are the same as a regular auto insurance policy’s. The following criteria factor in your insurance quote:

Driving History

If you have a clean driving record with no parking violation, hit-and-run cases, and impaired driving charges against you, you can enjoy discounted premium rates. However, if you have an irresponsible driving record, it can surge your premium rates.

Your Current Age

If you are an experienced driver, you can get lower premium rates. For younger drivers, the premium can be expensive as they are inexperienced behind the steering wheels.

Your Coverage Needs

It is always advisable to purchase insurance a little above your state’s liability requirements. So if you go for expensive insurance, your premium rate will be a bit high.

How Expensive Is Canadian Non-Owner Insurance?

The cost of non-owner insurance is not as high as you would imagine. There are, of course, various factors that determine your insurance’s expenses, such as:

Your Driving Range

How many kilometers do you drive per day using a non-owned car? If you drive long-distance, your premium rates might be higher.

Driving Frequency

Do you drive two times a week or less? Or do you need a rented or a borrowed car almost daily to commute? If you use a car more frequently, your premium rates would be higher.

Insurance Claim Record

If you rarely claim insurance compensations and have a safe driving record, it can help avail discounted premium rates.

Where Do you Drive

if you drive through bustling urban roads, chances of accidents are high. Hence, your premium rate might also be steep.

Depending upon these factors, you can ask your insurance agent or company to evaluate an approximate amount for your non-owner car policy. Be assured that your coverage purchase expenses will always be lesser than the out-of-pocket compensation due to any possible road accidents.


Make sure to read through an insurance’s terms and conditions before buying it. This would help you develop an understanding of your policy’s coverage and exclusions.

It is always recommended to consult professional experts and receive affordable quotes for non-owner insurance. Protecting your finances while driving a borrowed car is made easy with a trustworthy name like Surex.

If you are interested in even more lifestyle-related articles and information from us here at Bit Rebels, then we have a lot to choose from.

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