Non-Owner Car Insurance: Facts You Need to Know

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on July 9, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated July 9, 2024

Visit author page

5 minute read

Article Contents

When renting or borrowing a vehicle, you aren’t covered by your primary vehicle insurance but you still need insurance if you want to drive them. Non-owner car insurance is a product that’s designed for drivers who frequently drive cars that they don’t own.

Non-Owner Car Insurance at a Glance

  • Non-owner car insurance in Canada allows drivers to have insurance coverage when driving a rented or borrowed vehicle.
  • When taking out non-owner car insurance in Ontario, it’s added on to your existing policy using the OPCF27 form as an endorsement.
  • Non-owner car insurance has the basics of an auto insurance policy, like liability coverage, personal injury protection, and uninsured motorist protection. However, it may lack other features like accident forgiveness coverage or roadside assistance coverage.

There are a variety of situations where you may need to rent or borrow a car. By taking out a non-owner car insurance policy, you keep yourself protected and compliant when on the road in a vehicle that isn’t yours. What does non-owner car insurance cover? Who is it for? Read on to find out what you need to know about non-owner car insurance.

Can I Insure a Vehicle I Don’t Own?

Yes, you can insure a vehicle you don’t own. In fact, you’re legally required to have an auto insurance policy to be able to drive a car in Canada. Though auto insurance policies are usually tied to the vehicle’s registered owner, it’s possible to take out non-owner car insurance if you have a valid driver’s license and an existing insurance policy.

What Does Non-Owner Car Insurance Cover?

Non-owner insurance typically isn’t as comprehensive as an auto insurance policy connected to a car you own. It’s important to know the coverage and limitations of a non-owner car insurance policy:

  • Liability coverage: The main feature offered by non-owner car insurance, liability coverage protects you against damages or injuries caused to others as a result of an at-fault accident. This is essential when renting or borrowing a car to minimize the financial impact of any unfortunate events.
  • Personal injury protection: If you’re injured in a car accident, non-owner car insurance will cover your medical expenses, regardless of who was at fault. This important facet of coverage will give you some financial peace of mind when dealing with injuries sustained from an accident.
  • Uninsured motorist protection: This type of courage protects you in the event of an accident involving an uninsured driver or a hit-and-run. Since uninsured drivers aren’t legally allowed to drive in Canada, they are more likely to run from accidents to avoid getting in trouble.
  • Accident forgiveness coverage: Non-owner car insurance typically doesn’t offer accident forgiveness, a feature of some policies that protects your driving record in case of an at-fault accident and subsequently keeps your insurance rates from rising. 
  • Roadside assistance coverage: Some auto insurance policies can include roadside assistance, such as tire changes or towing services in case of a breakdown. Unfortunately, non-owner car insurance does not include this coverage.
  • Personal belongings: if your personal belongings are damaged or lost while inside your borrowed or rented vehicle, non-owner car insurance won’t cover the cost of replacing them. However, they might be covered under your homeowner’s insurance policy.
  • Damage to the vehicle: Any damage caused to the vehicle you’re driving isn’t covered by non-owner car insurance, but will be covered by the primary auto insurance policy. Since the primary insurance policy is tied to the vehicle itself, it’s the policy of the vehicle owner that covers repair or maintenance costs for it.
  • Rental replacement: Non-owner car insurance policies won’t cover the cost to rent a vehicle if the one that you’ve rented or borrowed is deemed inoperable.
  • Company vehicles: Typically, the company’s own auto insurance covers company-owned vehicles or cars driven in service of a business.
What Non-owner Car Insurance Covers & Doesn't Cover

When Should You Get Non-Owner Car Insurance?

There are several situations where you should purchase non-owner car insurance. Here are a few examples:

  • If you frequently drive a family member’s or friend’s car, then non-owner car insurance can protect both of you in the event of an accident. Supplementing the car owner’s primary insurance ensures that you’re covering all bases if you’re not listed on the auto insurance plan.
  • People who rent cars regularly or avail of car-sharing services can benefit greatly from taking out non-owner car insurance. While it’s possible to get rental car insurance every time you rent a car, this option can get expensive over time. Non-owner car insurance can save you more money in the long run while ensuring that you’re covered every time you rent or share a car.
  • If you’re between owning vehicles, taking out a non-owner car insurance policy can help keep your insurance coverage uninterrupted and avoid any gaps in your insurance history. Maintaining a continuous line of insurance coverage will help you out when applying for another insurance policy, as insurance companies can consider any interruptions in your coverage as red flags and result in higher premiums.

Non-Car Owner Insurance in Ontario

In Ontario, non-owner car insurance isn’t available as a standalone policy. You need to have an existing auto insurance policy before you can take out non-owner car insurance. This is done by adding OPCF27 as an endorsement to your current policy. This form, also known as legal liability for damage to non-owned vehicles, allows your primary auto insurance policy to extend to borrowed or rented vehicles in Ontario.

What Do I Do When I Get into an Accident in a Vehicle I Don’t Own?

While driving a borrowed or rented car, getting into an accident can cause some financial and legal implications when it comes to making an insurance claim. To know whose insurance policy covers what, you need to understand a few things: exactly what your non-owner car insurance policy covers, what the vehicle owner’s car insurance policy covers, and how fault is determined by insurance companies. Here are a few tips for if you get in an accident:

  • Read your non-owner car insurance policy closely and determine how extensive your coverage is.
  • If you get into an accident, report it immediately to your insurance company and notify the owner of the vehicle so they can let their insurance company know as well.
  • Don’t admit fault at the scene of the accident – let the insurance companies sort that out.
  • Take note of all the details you need to properly file a claim with your insurance company.
  • Don’t agree to a settlement with another driver at the scene of the accident.
  • Go to a hospital to get medically checked, even for small injuries. Medical professionals can better assess you after an accident, and you’ll cover your bases for future insurance claims for medical expenses.
  • If the insurance company of another driver involved in the accident calls, you may need to talk to an insurance investigator. Make sure to keep details about the accident consistent and accurate. If your insurance company finds out you lied about your involvement in an accident, they may raise your insurance premiums or even cancel your policy altogether.
  • Contact an insurance lawyer if an insurance company – whether yours or another driver’s – wants to dispute your claim and you believe that you’re in the right.

How Does Non-Owner Car Insurance Impact Your Auto Insurance Rates?

Taking out a non-owner car insurance policy can impact your auto insurance rates. The biggest factor that this will affect is your insurance track record. If your insurance coverage history has a gap or interruption, that can be seen by insurance companies as a red flag, giving them a reason to raise your insurance premiums.

If you buy non-owner car insurance when driving a rented or borrowed car, insurance companies will see that as a sign of you being a responsible driver. By doing this, you signal to insurers that you are a low-risk driver and they’ll be more comfortable giving you lower auto insurance rates.

Key Advice From MyChoice

  • Non-owner car insurance can keep you covered when driving someone else’s vehicle.
  • You can take out a non-owner car insurance policy if you don’t currently own a vehicle but are planning to buy one soon. This keeps your insurance record continuous and prevents a gap in your record that can be seen as a red flag.
  • A non-owner car insurance policy can save you money in the long run as opposed to taking out rental car insurance every time you rent out a car.
  • Non-owner car insurance typically doesn’t cover vehicles driven as part of a business.

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes

Discover More About

Insurance companies are leaving Alberta due to high loss ratios. Take a deep dive into the region’s auto insurance market and its current pain points.
Learn when your policy will cover brake pad replacement, how to replace your brake pads, and the signs that your brake pads should be replaced.
Learn when to replace your car tires by recognizing signs of wear, understanding tread depth, and knowing the right time to switch to winter tires in Canada.

Even More Ways To Save