What Is a Non-Owner Auto Policy?
What Is a Non-Owner Auto Policy?
A non-owner auto policy is a personal auto liability policy for people who do not own a vehicle but who regularly drive borrowed, rented, or shared vehicles. It provides liability coverage when the policyholder is at fault in an accident while driving someone else’s car, and it can be written to include uninsured motorist, underinsured motorist, and medical payments coverage that follows the insured person regardless of what vehicle they are in.
Who is a non-owner auto policy designed for?
Non-owner policies are most commonly purchased by people who:
- Do not own a car but occasionally rent or borrow vehicles
- Frequently use rideshare services as passengers and want UM/UIM coverage that stacks on top of platform coverage
- Are required to file an SR-22 or FR-44 certificate of financial responsibility after a license suspension or DUI conviction but do not own a vehicle
- Have returned a company vehicle and need continuous insurance coverage to maintain their driving record in good standing
What does a non-owner auto policy cover?
A non-owner policy covers the policyholder’s legal liability to others when they cause an accident in a non-owned vehicle. The limits are set by the policyholder at purchase, typically starting at Georgia’s minimum of 25/50/25 and available at higher limits. For example, a policyholder who borrows a neighbor’s car and causes a rear-end collision is covered for the other driver’s medical expenses and vehicle damage up to the selected policy limits.
When written with UM/UIM coverage, the policy also pays the policyholder for injuries caused by an uninsured or underinsured driver – including when the policyholder is a passenger in someone else’s vehicle, a rideshare vehicle, or a rental car. Under Georgia’s add-on UM/UIM rule (O.C.G.A. § 33-7-11), this UM/UIM coverage stacks on top of whatever coverage the vehicle owner or platform provides, rather than offsetting against it.
Georgia’s UM/UIM statute creates two classes of covered persons. Class 1 (the named insured, their resident spouse, and resident relatives by blood or marriage) have UM/UIM coverage that follows them personally – they are protected “while in a motor vehicle or otherwise.” This personal portability is why a non-owner policyholder’s own UM/UIM follows them as a passenger in borrowed cars, rideshare vehicles, or rental cars. Class 2 (permissive users, guests in the insured vehicle, and personal representatives) are covered only while physically in the specific insured vehicle. A non-owner policy with UM/UIM gives the policyholder Class 1 status on their own policy, providing the personal UM/UIM coverage that follows them into any vehicle.
What does a non-owner auto policy not cover?
A non-owner policy does not cover physical damage to any vehicle the policyholder is driving. It provides no collision or comprehensive coverage. A non-owner driver who damages a borrowed car has no coverage for the car itself under a non-owner policy – only the liability exposure to others is covered. For example, a policyholder who borrows a coworker’s SUV and scrapes a parked car is covered for the parked car’s repairs through the liability portion, but owes for any damage to the borrowed SUV out of pocket.
Non-owner policies also do not cover vehicles regularly available for the policyholder’s use. If a family member’s car is available to the policyholder on a regular basis, that vehicle should be added to the family member’s policy as a regularly driven vehicle. The non-owner policy is for occasional use of vehicles to which the policyholder has no regular or ongoing access.
How does a non-owner policy interact with the vehicle owner’s insurance?
The vehicle owner’s liability insurance is primary. The non-owner policy is excess – it pays only after the owner’s coverage is exhausted. This mirrors the general principle that insurance follows the vehicle first, with the driver’s own policy providing excess protection.
For rideshare passengers and others who frequently occupy vehicles they do not own, the UM/UIM component of a non-owner policy is often more valuable than the liability component. The UM/UIM follows the person as a passenger, including in rideshare vehicles where the platform’s post-HB 529 UM/UIM limit in Georgia is $100,000 per person.
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