A non-owner car insurance policy is made for people who don’t own a car but often drive vehicles belonging to others – friends, relatives, car rentals or vehicles from the employer’s fleet. It acts as liability coverage, i.e. it will pay for damages done to other vehicles and medical bills for the passengers inside them, but not for damage to the car you are driving. A non-owner’s insurance doesn’t include comprehensive/collision coverage, towing or rental reimbursement.
A non-owner’s policy may be the right choice if you live in a large metropolitan area where parking spots are very expensive (or nonexistent altogether), the traffic is very congested and you would rather borrow a car every once in a while than own one. Even if you drive a friend’s car every once in a while, a non-owner’s policy can pay off when the owner’s car insurance limits are low and you are sued for the difference. It might also work better if you frequently rent cars – a non owner’s policy is inexpensive than paying the rental insurance for very short periods of time.