Everything You Need to Know About Non Owner Car Insurance in North Carolina

Non owner car insurance provides liability coverage for drivers who don’t own a car. This type of insurance is required in certain situations in North Carolina, such as for people who need to drive occasionally or those who have had their license suspended.

Below is a comprehensive guide on non owner car insurance in NC:

What is Non Owner Car Insurance?

Non owner car insurance, also known as named operator policies, provides liability coverage for drivers when they operate vehicles they don’t own.

It protects you when you drive someone else’s car, such as:

  • Borrowing a friend or family member’s car
  • Renting a car
  • Driving a company car for work

Non owner policies only provide liability coverage. This means it covers injury to others or damage to their property when you are at fault in an accident. It does NOT cover damage to the car you are driving or injury to yourself.

Non owner policies are priced based on your driving record, age, location and other factors. They tend to be cheaper than regular car insurance since you are not insuring a vehicle.

Why Get Non Owner Car Insurance in NC?

There are several situations where non owner car insurance is required or recommended in North Carolina:

Meeting Minimum Liability Requirements

North Carolina requires all drivers to carry minimum auto liability coverage of:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Without non owner insurance, you wouldn’t meet these requirements if you drive a car you don’t own. Having this coverage protects you from financial and legal consequences if you cause an accident.

Reinstating a Suspended License

Drivers who have had their license suspended for any reason must file an SR-22 form with the DMV to get their license reinstated. An SR-22 form proves you have liability insurance.

Non owner car insurance is often the most affordable way to get SR-22 coverage. It allows you to drive legally again after a suspension.

Obtaining a Driver’s License

North Carolina requires driver’s license applicants who don’t own a car to get non owner liability coverage. This proves you will be insured when driving.

Teenagers and new state residents commonly need non owner policies when first getting a license.

Driving Occasionally

Non owner car insurance allows you to drive vehicles belonging to others on an occasional basis. It can provide cost savings if you don’t own a car but drive less than 10 times a month.

High Risk Drivers

Drivers with poor records like DUIs may be unable to get regular car insurance or only qualify for expensive policies. Non owner insurance provides affordable liability coverage so they can legally drive other vehicles.

What Does Non Owner Car Insurance Cover in North Carolina?

Non owner insurance includes the state minimum liability coverages:

Bodily Injury Liability: Pays for injuries to others when you are at-fault in an accident. The NC minimum limits are $30,000 per person and $60,000 per accident.

Property Damage Liability: Covers damage you cause to another vehicle or property. The minimum is $25,000.

Additional coverages like collision, comprehensive, uninsured motorist, etc are NOT included but can sometimes be added for extra cost. Make sure to ask an agent if you need these coverages.

How Much Does Non Owner Car Insurance Cost in NC?

The cost of non owner insurance varies significantly based on your driving record, age, location and other risk factors. On average, expect to pay $150 to $350 per year for a basic non owner liability policy in North Carolina.

Here are some factors that impact the cost of non owner car insurance:

  • Age – Rates are much higher for drivers under 25 years old

  • Driving Record – Expect higher premiums if you have past tickets, accidents or DUIs. Clean records get the lowest rates.

  • Location – Insurance costs more in cities than rural areas

  • Credit Score – Insurers charge more for drivers with poor credit

  • Policy Limits – Higher liability limits cost more but provide better protection

  • Added Coverages – Collision, comprehensive, etc will increase the premium if you add them

To find the cheapest non owner insurance, get quotes from multiple companies and compare. Rates can vary significantly between insurers.

How to Get Non Owner Car Insurance in North Carolina

Follow these steps to get a non owner policy in NC:

  1. Shop and Compare Quotes: Get quotes from at least 3 insurance companies to find the best rate. You can use comparison websites or work with an independent agent.

  2. Provide Info for Quote: Be prepared to provide details like your age, license status, address and driving history. This allows insurers to accurately price your policy.

  3. Consider Your Risks: Think about how often you drive other cars and your likelihood of an accident. This helps determine what liability limits you need.

  4. Add SR-22: If you need non owner insurance to reinstate a suspended license, ask the insurer to file an SR-22. There may be a small fee.

  5. Pay Premium: Pay your premium to activate coverage. You can pay in full or arrange a monthly installment plan.

  6. Get Proof of Insurance: Carry your insurance card as proof of coverage when driving. You may also need to provide proof to the DMV.

Top Non Owner Car Insurance Companies in NC

The cheapest insurer for you depends on your individual risk profile. But here are some top companies to consider for non owner policies in North Carolina:

  • State Farm: Best for student drivers and those wanting add-on coverages.

  • Geico: Competitive rates and easy online quotes. Good for high risk drivers.

  • Progressive: Known for discounts and price comparison tools. Good for low mileage drivers.

  • Allstate: Use Drivewise program to get discounts for safe driving.

  • USAA: Only for military members and families but has cheap rates.

  • Travelers: Discounts for homeownership, multi-policy, good driving and more.

  • Nationwide: Available discounts for defensive driving course completion.

  • State Auto: Independent agents and personalized local service.

Frequently Asked Questions

Can you insure a car you don’t own?

Yes, non owner car insurance provides liability coverage when driving a car you don’t own. It’s cheaper than regular insurance since you aren’t insuring a specific vehicle.

What is an SR-22?

An SR-22 is a form insurers file with the DMV to prove you have liability insurance. It’s required to reinstate a suspended license in most states. Non owner policies can provide SR-22 coverage.

Is non owner car insurance required?

North Carolina requires all drivers to carry minimum liability coverage. Non owner insurance meets this requirement if you drive cars not registered to you. It’s mandatory in some situations like license reinstatement.

Does non owner insurance cover rentals?

Yes, non owner policies cover you when driving rental cars for liability to others. But they do NOT cover damage to the rental itself – you’d need separate rental car insurance for that.

Can I add comprehensive or collision to a non owner policy?

Some insurers allow you to add extra coverages like comprehensive and collision to a non owner policy, for an additional premium. But most only offer basic liability.

Is Non Owner Insurance Right for You?

Non owner car insurance provides affordable liability coverage for those who occasionally drive cars they don’t own. It meets state requirements and can help high risk drivers get back on the road after a license suspension or DUI.

Carefully consider your situation and insurance needs. Compare quotes from leading insurers to find the best rates. With some smart shopping, you can get the non owner coverage you need at a reasonable cost.

Non Owner Car Insurance Explained


How much is non-owners insurance in NC?

The average cost of North Carolina non-owner car insurance is $52 per month, which is $9 more than the national average of $43 per month. Remember that factors such as your age, credit history and driving history have a bigger influence on insurance costs than where you live.

How do I get liability insurance in NC without a car?

If you do not own a vehicle, the only resolution would be to purchase a non-owners insurance policy. If you do not own a vehicle but rent a car frequently, you are typically required to purchase liability and physical damage coverage from the rental company, which can be rather expensive.

What is a non owned auto coverage?

Non-owned vehicles are personal cars that your business doesn’t own, lease or hire. Non-owned auto coverage helps provide liability protection if a vehicle you haven’t leased, hired or rented is driven for your business and is in an accident.

Can I register a car in NC without insurance?

Proof of Liability Insurance North Carolina law requires continuous liability insurance (provided by a North Carolina-licensed provider) on all vehicles titled and registered in North Carolina. It is required prior to titling a vehicle.

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