What Insurance Do I Need if I Do Not Have a Car
If you drive someone else's car now and then, you need liability coverage of your own. If you never drive, you don't need a policy at all.
It depends on whether you still drive
If you don't own a car but you borrow one, rent one, or drive a family member's car from time to time, you need a non-owner car insurance policy. It covers your liability if you cause an accident while driving a car that isn't yours. It doesn't cover damage to the car you're driving, only the damage or injury you cause to others.
If you've given up driving entirely, you don't need car insurance at all. There's no requirement to carry a policy on a car you don't own and don't drive. The only reason to think about coverage at this point is if you expect to drive again, even occasionally, or if you want to keep a continuous insurance history for when you do.
Whether you ever get behind the wheel
A non-owner policy only makes sense if there's a real chance you'll drive. That includes borrowing a child's car, renting one on a trip, or driving a friend's car while yours is in the shop. If any of that sounds like you, the policy is worth having, because your own auto insurance from years ago doesn't follow you once you no longer own a car.
If you're certain you won't drive again, whether because of a medical condition, a choice to give up your license, or simply no longer needing to, then there's nothing to insure. Car insurance covers driving. Without driving, there's no risk for a policy to cover.
Some people in between these two situations keep a non-owner policy just in case. That's a personal call, not a requirement. Nobody is required to carry insurance against the possibility of driving someday.
What a lapse in coverage can cost you later
If you've had car insurance continuously for years and then drop it because you sold your car, some insurers will treat you differently when you come back for a new policy later. A gap in coverage can mean losing a loyalty or continuous coverage discount you'd built up, even if the gap was for a good reason.
A non-owner policy is one way to avoid that gap. It keeps a policy active in your name even though you don't own a car, and it satisfies many insurers' definition of continuous coverage. Whether it actually preserves a specific discount depends on the insurer, so ask directly if this matters to you.
If you don't expect to need car insurance again, this isn't worth worrying about. It only matters for someone who thinks they might want a policy of their own again down the road.
Questions people ask about this
Do I need insurance if I only drive a family member's car?
You may be covered under their policy, but check with their insurer first. Many policies extend to household members or frequent drivers only if they're listed on it. If you're not listed and you drive their car regularly, a non-owner policy fills that gap.
Can I get car insurance if I don't have a driver's license?
If you've given up driving and surrendered your license, you generally don't need or qualify for an active auto policy. If you still hold a valid license but don't own a car, you can still get a non-owner policy.
Does renting a car mean I need my own insurance?
Rental companies offer their own coverage at the counter, but it's often an add-on cost. A non-owner policy can cover you when renting, so check with the rental company and your prospective insurer about how the two interact.
What happens if I let my car insurance lapse completely?
Nothing happens automatically, since there's no law requiring you to carry insurance if you don't own a car. The only effect shows up later, if you apply for a new policy and the insurer asks about your coverage history.
Is a non-owner policy cheaper than a regular car insurance policy?
It covers less, since there's no vehicle to insure for damage, so it's priced for liability only. Ask any insurer you're considering to explain exactly what the policy includes before comparing it to what you had before.
See what a non-owner policy would cost you before deciding whether you need one.
Think honestly about whether you'll drive at all in the coming year, even occasionally. If the answer is yes, call your previous insurer or a new one and ask specifically about a non-owner policy. Ask how it would affect any discount or coverage history you've built up. If the answer is no, you likely don't need to do anything, though it's worth telling your current insurer you've sold your car so they can close out the policy properly. Keep any cancellation notice or final document from your old insurer in case you need to show proof of your coverage history later.
