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Non-Owner Car Insurance in Canada

To the point Do you want to know what non-owner car insurance is in Canada? Let's find out in this article.

Non-owner car insurance is available to Canadian drivers who do not own a car but regularly rent, borrow or use car-sharing services. In Canada, it’s illegal to drive without having a valid car insurance policy in place.

It’s essential to have a valid car insurance policy that covers liability to protect you in the event of an accident if you’re borrowing someone else’s car or renting one. With a non-owner car insurance policy, you are protected from out-of-pocket financial losses incurred from property damage or injuries caused by an at-fault accident.

What is Covered With a Non-Owner Car Insurance policy?

The following is covered with a non-owner car insurance policy:

  • Liability coverage: Excluding your passengers, you have liability coverage for property damage and bodily injury to pedestrians or other drivers caused by you.
  • Personal injury protection: Injuries resulting from an accident are covered regardless of who is at fault.
  • Uninsured/underinsured motorist protection: This coverage protects you if you get injured in a hit-and-run or an accident caused by a driver who doesn’t have enough or doesn’t have any insurance.
  • Rental car coverage: Rental companies all have their commercial insurance policies, but you should get non-owner car insurance to ensure you’re covered if you’re liable for physical damage to your car or another driver’s vehicle. With a non-owner car insurance policy, you qualify for a waiver for at-fault physical damages.

Non-owner car insurance does not provide collision or comprehensive coverage, as it covers the cost of repairing or replacing a personal car that you own.

Driver risk status: By purchasing a non-owner insurance policy, you protect your driver’s risk status. This is significant because car insurance companies regularly evaluate your risk level before providing you coverage, and the lower your risk, the lower your premiums will be. If you have a lot of gaps in your driving history without insurance, they may consider you a greater risk. Purchasing a low-rate non-insurance policy is a simple approach to keeping a positive status and enjoying a lower premium in the future.

What is OPCF27?

The OPCF27 add-on to your current car insurance policy, also known as legal liability for damage to non-owned vehicles, allows you to add your existing coverage to a borrowed or rented car.

Rental cars often lack collision and comprehensive coverage, and the standard insurance limits for bodily injury and property damage claims may not be as high as you’d want. However, you can sign a waiver to absolve yourself of responsibility for car damages, but with OPCF27, you won’t have to.

With the additional endorsement, you can use your third-party liability and accident benefits from your car insurance policy on the insured car you’re driving. You’ll also get collision and comprehensive insurance, which means you won’t have to pay for all damages if you get into an accident in your non-owned vehicle.


Several car insurance companies offer non-owner car insurance policies. Do your research and find an insurance company that will provide you the lowest rates with the best coverage.

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Jean-Maximilien is an expert in Canada and France about Loyalty programs, Credit cards and Travel. He is the Founding President of Milesopedia.

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