What is non-owner car insurance in Canada? 2024 guide

Non-owner car insurance is like a safety net for those times when you're behind the wheel of a car you don't own. 

Whether you're borrowing a friend's car or renting one for a road trip, this type of insurance has got your back. But what exactly does it cover? And who needs it? What does it cost? We've got you covered.

We're diving into all things non-owner car insurance in Canada, from what it is to how it works in different provinces. You can use our free comparator to compare the best car insurance quotes based on your unique needs.

What is non-owner car insurance?

Non-owner car insurance is a liability insurance policy designed for people who don't own a car but occasionally drive someone else's. It kicks in if you cause an accident while borrowing a friend's car, renting a car or using a car-sharing service.

Here's what this insurance typically covers — and doesn't cover

• Bodily injury: This pays for the medical expenses of others if you cause an accident while driving someone else's car.
• Property damage: It covers repairs or replacements if you damage someone else's property with a borrowed car (think mailboxes, fences or another car).

• Damage to the car you're driving: Non-owner insurance doesn't cover repairs to the car you borrow or rent if you're at fault in an accident. You might be able to get a collision damage waiver (CDW) from the rental company or use coverage offered by some credit cards.
• Your injuries: Medical bills for yourself if you're hurt in an accident while driving someone else's car aren't covered.

Car insurance is mandatory in Canada and even if you're driving your vehicle, you need some form of coverage. Explore the best car insurance plans in Canada based on your unique needs and budget right here using our free tool below. Get free quotes from the best providers.

Who might need non-owner car insurance?

• People who frequently borrow cars
• People who rent cars often
• Drivers with an SR-22 requirement (a certificate proving liability insurance, often required after a DUI or driving without insurance)

Not sure whether this is the right option for you? Use our comparator to get more details, such as its coverage and price in your province.

How does non-owner car insurance work? 

Non-owner car insurance works a bit differently in the public auto insurance provinces of Canada — British Columbia (BC), Saskatchewan and Manitoba.

Here's what you can expect:

• Standalone policies available: Unlike most provinces with private insurance, these provinces allow you to purchase non-owner car insurance as a standalone policy, even if you don't own a car yourself. This is handy if you frequently borrow cars or use car rentals.
• Saskatchewan: Here, non-owner coverage is already included in the basic Auto Pak plan if it includes collision and comprehensive insurance. So, if you already have car insurance, you're automatically covered for non-owned vehicles as well.
• British Columbia & Manitoba: You can add it as an endorsement to your existing auto policy, similar to private insurance provinces. Non-owner car insurance BC also offers an optional package called RoadStar or RoadStar Plus that includes non-owner coverage alongside other benefits.

How do non-owner car insurance Ontario plans work?

In Ontario, non-owner car insurance isn't exactly a standalone policy like in some other provinces. It's an add-on feature called OPCF 27, also known as legal liability for damage to non-owned automobiles.

Here's how this insurance works in Ontario:

• Add-on to existing policy: You can't buy OPCF 27 by itself. You need to have an existing Ontario car insurance policy and add OPCF27 as an endorsement to extend coverage from your current policy to borrowed or rented vehicles.
• Extends existing coverage:  Think of OPCF27 as an umbrella that extends the liability and accident benefits coverage you already have on your car to apply to borrowed vehicles as well.

If you're at fault in an accident while driving someone else's car, OPCF27 will kick in and cover:

• Bodily injury of others involved in the accident.
• Property damage to other people's property caused by the accident (e.g., another car, a fence).

Unlike comprehensive coverage, OPCF27 doesn't cover damage to the car you're borrowing or renting if you're at fault in an accident. You might need to get a separate Collision Damage Waiver (CDW) from the rental company or rely on coverage offered by some credit cards.

What is OPCF27? 

OPCF27, also known as Legal Liability for Damage to Non-Owned Automobiles, is an endorsement you can add to your existing car insurance policy in Ontario, Canada. It essentially extends your car insurance coverage to vehicles you don't own, such as borrowed cars or rentals.

It provides financial protection if you damage someone else's car (or property) while driving it. Keep in mind that OPCF27 is not a standalone policy. OPCF27 typically covers third-party liability and property damage. 

When it comes to renting cars, OPCF27 has some limitations:

• Applies to standard-sized rental vehicles. It wouldn't cover trucks, vans, motorcycles or other specialty vehicles.
• The vehicle's gross vehicle weight (GVWR) can't exceed 4500 kg (roughly 9920 pounds) to be covered by OPCF27.
• Only drivers listed on your personal insurance policy are covered by OPCF27 when renting a car.
• OPCF27 coverage is limited to a maximum of 30 consecutive days for a rental car.
• OPCF27 coverage is only valid for rentals in Canada and the United States.

How much is non-owner car insurance?

The cost of this insurance in Canada can vary depending on several factors, including:

1. Province: Each province has its insurance regulations and might offer different coverage options. For instance, standalone non-owner policies are available in some provinces but not others.
2. Your driving record: A clean driving record with no accidents or speeding tickets will generally lead to lower premiums.
3. Frequency of use: How often you borrow or rent cars can affect the cost. More frequent use might lead to a higher premium.
4. Type of Coverage: The specific coverages included in your policy (e.g., liability amounts) will also influence the cost.

Here's a general idea of the cost range:

You must get car insurance quotes based on your unique profile and needs as the costs vary from one individual to another. You can get personalized car insurance quotes and compare them right here using our free tool below.

How to get non-owner car insurance in Canada?

Just like the cost, the process of getting non-owner car insurance in Canada depends on your province. We have covered how it works in various provinces, giving you an idea of how to get it, but here’s a brief overview to help you further:

In provinces like BC, Saskatchewan and Manitoba

1. Compare quotes: Utilize online insurance comparison websites to get quotes from various insurance providers.
2. Contact insurance companies: You can also reach out to individual insurance companies directly for quotes.
3. Choose a provider: Select the company offering the most competitive rate and coverage that suits your needs.
4. Apply for coverage: Follow the application process of your chosen provider, which might involve submitting documents like your driver's license.

In Ontario (OPCF 27 endorsement)

Now, this might be a little different than you expected:

1. Contact your existing car insurance provider: Since OPCF27 is an add-on to your existing policy, reach out to your current car insurance company.
2. Inquire about OPCF27: Ask about adding the OPCF27 endorsement to your car insurance policy.
3. Provide additional information: The insurance company might request additional information about your driving habits and the types of vehicles you expect to borrow or rent.
4. Pay the premium: Once approved, you'll need to pay the additional premium for the OPCF27 endorsement.

How can you save on non-owner car insurance?

Here are some tips to potentially save on non-owner car insurance:

• Increase your deductible: Raising your deductible can lower your premium. Just be sure you can afford the deductible if you need to make a claim.
• Consider usage-based insurance: If you borrow cars infrequently, usage-based insurance that bases your premium on how much you drive might be a good option.
• Ask about discounts: Many insurance companies offer discounts for good drivers, taking defensive driving courses or insuring multiple vehicles.

Another great way to save money is to compare different plans — including their rates and coverage — from various providers. You can do it right here, using our comparator.

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Sunny Yadav Copywriter

Sunny has over six years of experience curating engaging content spanning across industries. Specifically in finance, his expertise is insurance reviews and lending and investment topics.