Non-owner Car Insurance in Canada

What is non-owner car insurance?

A non-owner car insurance policy provides liability coverage for drivers involved in an accident while using a vehicle they do not own. Like all car insurance policies, non-owner policies have specific rules and conditions.

To be eligible for non-owner car insurance, drivers typically need to maintain an active personal auto insurance policy or a commercial general liability (CGL) policy that includes coverage for commercial auto insurance. This requirement ensures that drivers have liability protection when operating vehicles they do not own.

You should contact your provider directly to learn about the specific requirements and options available for obtaining non-owner coverage.

Non-owner auto policies offer liability protection, which means that if you are involved in an accident while driving a vehicle that is not yours—be it a friend's car, a family member's vehicle, or a rental car, you can be covered for damages and any potential legal claims made against you.

This type of policy is particularly advantageous for individuals living in urban areas, where there is a higher reliance on car-sharing services. Additionally, it benefits those who might occasionally need to rent a vehicle for business trips or personal travel over an extended period.

What provinces is non-owner car insurance policies available?

In British Columbia, Saskatchewan, and Manitoba, you can purchase non-owner car insurance as a standalone policy:

• Saskatchewan: Non-owner coverage is automatically included in the basic Auto Pak plan if you have collision and comprehensive insurance in Saskatchewan. This means you're covered even if you don't own a car.
• British Columbia: You can add non-owner coverage to your existing auto policy in B.C. or purchase it separately through RoadStar or RoadStar Plus, optional packages that bundle non-owner coverage with other popular products.
• Manitoba: Non-owner car insurance can be added to your current Manitoba auto insurance policy.

This coverage is also available as SEF27 in Alberta and Atlantic Canada, or QEF27 in Quebec, and can be added to your existing policy in these regions.

Keep in mind that insurance regulations vary by province. Contact a local broker for personalized advice and to ensure you have the right coverage for your needs.

What do non-owner policies cover?

Non-owner insurance primarily focuses on liability coverage, which means it covers damages or injuries to others if you're responsible for an accident. It’s important to note that this policy only applies to you, not other drivers.

Many insurance companies allow you to add extra coverage options:

• Personal injury protection: This coverage helps pay for medical costs and rehabilitation for you and your passengers after an accident. It can also help cover lost wages, also known as SABS.
• Underinsured/uninsured motorist coverage: This option helps pay for costs if you have an accident with a driver who doesn’t have insurance or who can't pay for all the damages.

Knowing these details will help you make an informed choice when selecting a non-owner car insurance policy. Before buying a non-owner policy, it’s important to know what it covers and doesn’t. This helps you understand your coverage and prepare for any accidents.

What doesn’t a non-owner policy cover?

While non-owner insurance offers basic liability coverage, it does not include comprehensive, collision, or roadside assistance, which may leave you financially responsible in various situations. Here’s a look at when you might need them:

• Comprehensive and collision coverage: This policy does not cover vehicle damages from falling objects, severe weather, theft, vandalism, or fire. You are responsible for the costs if a borrowed or rental car is damaged in these situations. Additionally, non-owner insurance does not cover accident-related damages, so you would need to pay for repairs out of pocket if you’re in a collision while driving a non-owned vehicle.
• Roadside assistance: This policy also does not include roadside assistance services such as flat tire changes, towing, or jump-starting. If you encounter an emergency while driving a non-owned car, you must manage it independently.

Who needs non-owner insurance for their car?

A non-owner policy covers you when you drive cars you don’t own. Here’s when you might need one:

• If you rent cars often: Most rental companies require you to take full responsibility for any damages. While you can buy coverage directly from the rental agency, it tends to be more expensive and offers less protection than a non-owner policy.
• If you regularly borrow someone else's car: Maybe your car is in the shop, or you've sold it, and you're using a friend’s or family member’s car. Their insurance may cover you, but a non-owner policy can add more protection. If an accident occurs, and the damages go beyond their policy, your non-owner insurance can step in and help with the remaining costs—so you’re not left paying out-of-pocket.
• If you use car-sharing services: Most car-sharing companies provide basic insurance, but non-owner coverage can give you added protection, especially in the case of a major accident.

You don’t need a non-owner policy if:

Here are a few examples of when you may not need a non-owner policy.

• You own a car: A standard car insurance policy should suffice.
• You share a car with a household member: If you frequently borrow a car from someone you live with, it’s best to be added to their policy as an occasional driver, as many companies require this for household members.
• You rarely rent vehicles: If you use borrowed cars infrequently, consider being added to the policyholder’s insurance instead of getting non-owner car insurance, which can be costly.
• You’re using a borrowed car long-term: A standard auto insurance policy will offer better protection than non-owner insurance.

How much does non-owner insurance cost?

Non-owner coverage generally costs less than liability coverage for a car you own. However, the price can vary based on factors like your driving record, location, and chosen coverage limits. In Ontario, you may qualify for OPCF 27 – non-owner coverage is not available as a standalone option.

Contact our brokers for answers to your questions and a personalized quote to find the coverage that fits your needs, or learn more about pay-as-you-go insurance.

Non-owner insurance FAQs

Where can I get non-owner insurance?

Any driver with a valid driver's license and an existing auto insurance policy is eligible for non-owner car insurance as an endorsement for a vehicle they do not own. Contact your insurance provider to learn more about costs and available options.

Is non-owner car insurance more expensive?

When comparing insurance options, many factors exist, such as your driving history, age, location, and coverage needs. Non-owner insurance may be cheaper for some drivers, while others may benefit from having a basic policy.

Make sure you’re covered when driving someone else’s car in Canada

Non-owner insurance offers protection for those who don’t own a car but still drive, whether borrowing, renting, or seeking continuous coverage. It provides liability protection for drivers without their vehicles. Drive safely and responsibly, even when you're in someone else's car.