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 some situations for North Carolina drivers. Here’s everything you need to know about non owner auto insurance in NC.

What is Non Owner Car Insurance?

Non owner car insurance, also known as non owner auto insurance, provides liability coverage for drivers who don’t own a vehicle. It covers damages that an insured driver causes to other people and their property while operating a vehicle they don’t own.

Non owner policies do not provide coverage for damage to the vehicle the insured is driving. They only cover damages the insured driver causes to others and their property.

Who Needs Non Owner Car Insurance in NC?

There are several situations when a North Carolina driver may need non owner auto insurance:

  • New residents who want to get a NC driver’s license but don’t own a car yet. North Carolina requires new drivers to provide proof of insurance before getting a license. Non owner insurance satisfies this requirement.

  • Drivers who have lapses in their car insurance coverage. NC mandates continuous auto insurance coverage. Non owner insurance provides proof of insurance during coverage lapses.

  • Drivers who have lost their car insurance due to unpaid premiums or policy cancellation. Non owner insurance demonstrates they meet the state’s insurance requirements.

  • Drivers who have had their licenses suspended. North Carolina requires SR-22 filings to reinstate suspended licenses. An SR-22 provides proof of insurance. Non owner policies qualify for SR-22 filings.

  • Occasional drivers who borrow or rent cars. Non owner insurance protects them while operating vehicles they don’t own.

  • Drivers who can’t get traditional car insurance due to issues like poor driving records or credit problems. Non owner policies provide affordable liability coverage.

NC Requirements for Non Owner Car Insurance

North Carolina has mandatory minimum auto insurance requirements. Non owner policies must meet the state’s minimum liability coverage levels:

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

Non owner insurance only provides liability coverage to comply with the state’s minimum requirements. It does not include comprehensive or collision coverage since those only apply to the policyholder’s own vehicle.

How Much Does Non Owner Insurance Cost in North Carolina?

Non owner car insurance usually costs between $150 to $600 per year in North Carolina. Rates depend on factors like:

  • Age: Young drivers under 25 pay the highest rates. Senior drivers over 60 qualify for discounts.

  • Driving record: Drivers with accidents or violations face increased rates. Clean records get lower premiums.

  • Credit score: Insurers charge higher premiums for poor credit and lower rates for good credit.

  • Location: Urban areas like Charlotte and Raleigh have higher premiums than rural counties.

How to Get Non Owner Insurance in North Carolina

Here are some tips for getting non owner car insurance in NC:

  • Shop around: Get quotes from multiple insurance companies to find the best rate. Rates can vary significantly between insurers.

  • Ask for discounts: Take defensive driving courses, maintain good credit, and look for other ways to qualify for discounts. This helps lower your premium.

  • Raise deductibles: Choose higher deductibles which reduce your policy’s premiums. Just make sure you can afford the out-of-pocket costs if you file a claim.

  • Limit policy term: Opt for 6-month policy terms rather than annual terms to lock in a lower rate for less time.

  • Improve your driving record: Resolve any outstanding tickets or violations on your record. This can help secure a lower premium.

  • Consider usage-based programs: Some insurers offer usage-based insurance where your rate depends on how much you drive. This offers savings for low-mileage drivers.

The Pros and Cons of Non Owner Insurance

Non owner car insurance has several advantages:


  • Inexpensive liability coverage
  • Satisfies state insurance requirements
  • Allows drivers to reinstate suspended licenses
  • Provides coverage for occasional borrowers


  • No collision or comprehensive coverage
  • Doesn’t cover damage to vehicles driven
  • More expensive than adding driver to existing policy
  • Not available from all insurance companies

For drivers who can’t get regular car insurance, non owner policies offer an affordable way to meet state requirements. But they provide limited coverage compared to standard auto insurance.

Frequently Asked Questions about Non Owner Car Insurance

Here are answers to some common questions about non owner auto insurance in North Carolina:

Do I need non owner insurance to get a license in NC?

Yes, North Carolina requires new drivers to provide proof of liability insurance before getting a driver’s license. Non owner insurance satisfies this requirement if you don’t own a car.

Does non owner insurance cover rental cars?

Non owner policies provide liability coverage when driving rental cars. But they do not cover damage to the rental itself. Renters will need to purchase the rental company’s collision damage waiver for that coverage.

Can someone else insure a car for me?

No, the policyholder must have an insurable interest in the vehicle, meaning they own it, lease it, or have a financial stake in it. But drivers can be added as additional insureds to a family member’s policy.

How long can I keep a non owner insurance policy?

You can maintain a non owner policy indefinitely as long as you pay the premiums. It provides continuous proof of insurance as required by the state.

What happens if I buy a car?

Once you purchase a vehicle, non owner insurance no longer applies. You must obtain a traditional car insurance policy to cover your new car.

The Bottom Line

Non owner car insurance provides affordable liability coverage for North Carolina drivers who don’t have their own cars. It satisfies the state’s mandatory insurance laws and allows suspended drivers to regain their licenses.

While non owner policies have limitations, they offer a valuable coverage option for certain drivers in NC. By understanding how they work, you can determine if this type of insurance fits your situation.

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.

Can you drive a car in NC without insurance?

North Carolina takes the requirement of having automobile insurance very seriously. If you are caught driving without it, you will not receive a minor traffic ticket. Instead, you will be charged with a Class 3 misdemeanor offense and will have a permanent criminal record if convicted.

What is an example of non owned auto coverage?

Non-Owned coverage example The other car’s bumper is damaged, and the other driver’s wrist is sprained. The resulting expenses are as follows: $1,500 medical bill for the other driver’s wrist X-ray. $1,000 bill to replace the other car’s bumper.

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