A Guide to Non-Owner Car Insurance in Michigan

Non-owner car insurance provides liability coverage for drivers who don’t own a vehicle. While designed for people without cars, non-owner policies can benefit certain Michigan drivers in a variety of situations.

Below we’ll explore what non-owner insurance covers, who needs it, how it works, and what it costs in Michigan.

What Does Non-Owner Car Insurance Cover in Michigan?

A non-owner policy provides liability insurance only. It does not cover damage to the vehicle you are driving.

Typical non-owner policies include:

• Bodily injury liability – covers injuries to others if you cause an accident
• Property damage liability – covers damage to others’ property that you cause
• Uninsured motorist – covers your injuries if hit by an uninsured driver (optional)
• Personal injury protection – covers your medical expenses after an accident (optional)

Non-owner policies usually only include the state minimum liability coverage levels. In Michigan that’s:

• $20,000 per person for bodily injury
• $40,000 per accident for bodily injury
• $10,000 for property damage

Collision, comprehensive, roadside assistance and other coverages are not available since there is no specific vehicle being insured.

Who Needs Non-Owner Car Insurance in Michigan?

Non-owner car insurance is designed for drivers who do not own a car but still need proof of insurance. Common situations where non-owner policies are useful include:

• New drivers who cannot yet afford their own car
• Drivers whose vehicles are in the shop for an extended time
• Individuals who lost their licenses for traffic violations and need to file an SR-22
• Households with fewer cars than drivers
• People who rent vehicles frequently
• Borrowing a friend or family member’s car regularly

Non-owner insurance can provide secondary liability protection if you cause an accident while driving a car you don’t own. It kicks in after the owner’s policy limits are exhausted.

How Does Non-Owner Insurance Work in Michigan?

To get a non-owner policy in Michigan, you’ll need to contact an insurance agent directly. Unlike standard auto insurance, online quotes are not available for non-owner coverage.

During the application process, be prepared to provide:

• A valid driver’s license number
• Your driving record and history
• Vehicle usage information
• A credit or debit card to pay for the policy

Once approved, you’ll receive proof of insurance documents immediately. Coverage starts as soon as your payment is processed.

You can choose just the minimum required liability limits or opt for higher amounts of protection. Additional options like MedPay, uninsured motorist coverage, and personal injury protection may also be available.

How Much Does Non-Owner Insurance Cost in Michigan?

A non-owner policy costs approximately $1,073 per year on average in Michigan, which is less expensive than a standard auto policy. Rates vary based on factors like:

• Your age, gender, marital status, and driving record
• Your desired liability coverage limits
• Your credit history
• Where you live
• Optional coverages added

Drivers under 25 or over 65 will pay the most for non-owner insurance on average. Those with excellent credit scores and clean driving histories will pay the least.

Major Insurers Offering Non-Owner Insurance in Michigan

Many large insurance companies do not provide non-owner car insurance. But these three top auto insurers offer non-owner policies in Michigan:

• Geico – 800-207-7847
• State Farm – 800-782-8332
• Nationwide – 877-669-6877

When comparing options, be sure to ask about any discounts for bundling your non-owner policy with other insurance products like renters or homeowners.

Is Non-Owner Insurance Required in Michigan?

Michigan does not require non-owner coverage specifically. But all drivers are required to maintain auto insurance in certain situations:

• If you owe on a vehicle loan, gap insurance is required
• SR-22 filings mandate insurance after major violations
• Leasing a car requires liability and collision/comp insurance
• Personal injury protection (PIP) is mandatory for all vehicle owners

So while non-owner insurance itself isn’t compulsory, you may need it to comply with certain legal requirements.

Key Benefits of Non-Owner Car Insurance

Non-owner policies provide important protections including:

• Liability coverage if you cause an accident in a borrowed car

• Flexibility between vehicles or during a coverage lapse

• Meeting minimum insurance requirements after license suspensions

• Avoiding rental car liability fees when traveling

• Maintaining continuous insurance history with no gaps in coverage

Is Non-Owner Insurance Right for You?

Non-owner car insurance fills an important niche for Michigan drivers who don’t own a car but still need liability coverage. It provides inexpensive peace of mind when borrowing vehicles and keeps your insurance record intact.

Carefully consider your auto insurance needs and risks. While perhaps not mandatory, non-owner insurance can be an affordable way to stay protected as a driver without a car in Michigan.