How Does Non Owner Insurance in Canada Work?

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non owner car insurance

Non-owner car insurance is offered to drivers who don’t own a car but borrow, rent or participate in car sharing services such as Zipcar on a regular basis. Like all drivers in Canada, it’s illegal to get behind the wheel without a valid auto insurance policy. So whether you’re borrowing someone else’s car or renting a vehicle, it’s crucial that you have a valid insurance policy with liability coverage to protect you in the event of an accident.

A non-owner car insurance policy will protect you from the financial burden of having to pay out of pocket for injuries or property damage resulting from an at-fault crash.

Before purchasing auto insurance from an insurance company, it’s important to understand your unique needs and compare quotes online to see the different offerings that you can take advantage of.

What type of coverage does a non-owner auto insurance policy provide?

You can expect most non-owner insurance policies to provide the following types of coverage: 

Liability coverage: Non-owner car insurance provides you with liability coverage for property damage and physical injury you cause to pedestrians or other drivers, with the exception of your passengers.

Uninsured/underinsured motorist protection: This insurance coverage provides protection in the event that you’re injured in a hit-and-run or in are an accident caused by a driver without insurance or without enough insurance. 

Personal injury protection: Insurance coverage for injuries resulting from an accident regardless who is at fault. 

It’s important to note that non-owner insurance doesn’t provide collision or comprehensive coverage – this type of protection pays for repairs or replacement of a personal vehicle that you own.

How does it impact your car insurance premium?

When you share a vehicle, you’re also sharing your auto insurance. If someone else is driving your vehicle and they crash, your insurance will cover the damages but your auto insurance premium will likely increase upon renewal. In Canada, your insurance covers anyone who borrows your car, as long as they have permission and a valid drivers license.

Why would I buy non-owner car insurance coverage?

There are many reasons why drivers in Canada opt for non-owner car insurance. Here are a few examples:

Liability protection: Accidents can happen at anytime, whether you’re driving a car that you own, a rental car or a borrowed vehicle. It’s important to be covered at all times, as accidents happen when you least expect them to. Liability insurance will protect you in the event that you’re in an accident, injuring another individual, while you were driving a non owned vehicle whether borrowing your friend’s car, driving a rental car, etc.

Coverage for a rental car: While all rental companies in Canada do have their own insurance under commercial policies, it’s always a good idea to get additional collision coverage in the event that you are responsible for physical damage to the vehicle or another driver’s vehicle. Renters are always responsible for damage or loss occurred while the car is in their possession. Rental companies do offer waivers to protect yourself against these risks however they come at extremely high daily rates. So if you rent cars often, this can add up very quickly. This is why you might consider non-owner insurance. When purchasing a non owner car insurance policy you can get access to a waiver for at fault physical damages. 

Driver risk status: You can protect your driver’s status by purchasing a non-owner insurance policy. This is important because car insurance providers will often assess your risk level prior to offering you a policy and the lower your risk, the better rates you will get. They also might see you as higher risk if you have many gaps in your driving history without insurance. Purchasing a non-insurance policy at a low rate is an easy way to maintain a favourable status and experience a better premium down the road.

Who can get non-owner car insurance?

Any driver with a valid driver’s license that doesn’t own a vehicle is eligible for non-owner car insurance. However, it’s important to note that many insurance companies won’t offer non-owner insurance to drivers who have access to a vehicle in their household.

For example, if a family member or someone in your household is lending you a vehicle, non-owner car insurance isn’t the appropriate choice. In this case, you are to be included in the car owner’s insurance policy.

How much is non-owner car insurance in Canada?

If you often borrow or rent a car then non-0owner car insurance is worthwhile. It costs between $200 and $500 annually, so it isn’t too bad – especially if you consider the cost of getting in an accident without insurance coverage. The cost of your non-owner car insurance policy may be impacted by the following factors:

Where can I buy non-owners insurance in Canada?

There are many insurance companies that offer non-owner policies, you just need to know where to look! Luckily at Complete Car, finding the top car insurance policies at the lowest rates is what we do best! We will sift through the top insurance providers in Canada and find the non-owner car insurance policy that makes sense for you. 

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