Can I Insure a Car Not in My Name?
It’s likely you won’t be able to insure a car that isn’t in your name, but there are a few exceptions. According to Policygenius, if you try to insure a car in someone else’s name, you will usually have a lot of trouble.
It’s probably not possible to insure a car that isn’t in your name, but there are a few exceptions. According to Policygenius, you’ll find yourself going through a lot of trouble if you try to insure a car in someone else’s name. Some situations make it appropriate, such as when you drive a car owned by another family member.
‘Can I insure a car owned by someone else?” you might ask. Find out everything you need to know about insuring a car in someone else’s name.
Often, we have a family member or friend that we wish to help insure their car under our name or for some other reason.
In most cases, you won’t be able to insure a car that isn’t in your name. Nevertheless, you can co-title a vehicle or add someone as a named insured to your auto policy.
In general, the owner of a car should be the one to insure it. Car insurance companies want to ensure that the primary policyholder has an insurable interest in the car they’re insuring.
Insurable interest essentially means that you have a reason to insure a car. The obvious reason is that if you own the car, you have an interest in preventing it from being damaged or destroyed.
When you don’t own a vehicle, it is more difficult to demonstrate your entrenched interest. When you try to insure a vehicle you do not own, insurance companies are wary of fraud and less likely to let you get a policy.
However, just because you can’t open an insurance policy for a car you don’t own doesn’t mean you’re out of options.
Is it possible to insure a car I don’t own?
As we discussed earlier, it’s generally impossible to insure a car you don’t own because insurance companies want you to show an insurable interest in the vehicle.
If you can’t prove you own the car, you’ll probably have trouble finding an auto insurance company that will insure it.
What is the best way to demonstrate a reliable interest?
In order to prove your interest in the insurance policy, you may need to present a car registration or title, which is a legal document that identifies the owner of the vehicle. In contrast, if you don’t own a car, it’s harder to prove to an insurance provider that you’ve got a legitimate reason to do so.
Optional coverage for a car that is not in your name
There are no exceptions to this rule; you will not be able to insure a vehicle you do not own. Alternative options may still be available to you.
1. A co-title for a car
A co-title means that you add an additional owner to the car. Each state’s Department of Motor Vehicles (DMV) has different requirements, but in most cases, adding an owner to a car will require jointly applying for a new title.
2. Adding a named insured to an auto policy
In the case of living with someone and taking their vehicle frequently, such as a roommate or family member, an insurance company may require that you be added as a named insured on their auto policy, or vice versa.
Named insureds should be added to a policy for all household members.
3. Insurance for non-owners
Despite the fact that you would be unable to insure a car you don’t own, if you want to protect yourself as a driver, you can consider something called non-owner car insurance. Insuring drivers who regularly rent or borrow cars is a type of reduced car insurance for non-owners.
This type only includes liability coverage.
Whether we’re discussing taking out insurance as the policy holder or habitual driver, the answer is that a driver can always get car insurance for a vehicle, whether it is their own or not, without the need for authorization and with full validity if something goes wrong.
There is only one exception to this statement: if the vehicle to be insured belongs to an under-25 year old without a driver’s license, the insurer may require a document that states that the driver will not drive the vehicle.
In case this minor under 5 already possesses a driver’s license, a company will usually force the young driver to be the policyholder, without even offering him the chance to be a second driver.
These practices by insurers are intended to prevent customer fraud, since, as we all know, young drivers, particularly those younger than 25, have higher insurance rates as they provide a higher risk for insurers.
Alternatives to Insuring a Car That Isn’t Yours
There are alternative options for coverage if you can’t or don’t want to buy a non-owners policy. In addition to these, here are some other ways you can insure a car that’s not yours:
Register your vehicle and ask to be added.
By being listed as a registered owner, you have an insurable interest in the car.
Transfer the car registration to your name.
The owner can transfer the registration to you so you can open an insurance policy if the car is no longer needed or wanted.
Cover your rental car with insurance.
To be covered if you get into an accident while renting a car, select the collision damage waiver offered by the rental company.
Be added to the existing auto insurance policy as a driver.
When the owner adds you to their insurance policy, you should be covered in case of an accident.
Your insurance policy should include the vehicle owner.
Adding the owner and the vehicle to your insurance policy provides coverage for both of you.
Request to be added to the title of the vehicle.
With your name on the title, you have an insurable interest in the vehicle, which means you can insure it.7
Insure your non-ownership property.
If you frequently rent, borrow, or share other people’s cars, non-owners insurance is a great option. Keep in mind, however, that this insurance will not cover damages to your own vehicle – it will only cover damages to the other car and passengers if you’re at fault in an accident. Those looking to reinstate their license after a suspension can also take advantage of this coverage.
Questions and answers
If I don’t own a car, do I need car insurance?
You probably do not need auto insurance if you do not own a car legally. Non-owner insurance may be a good idea if you frequently rent cars or drive someone else’s car. These policies, also called named-operator policies, cover you as a driver without insuring the vehicle. They typically provide you with liability coverage, as well as medical payments, personal injury protection (PIP), and uninsured/underinsured motorist coverage.
Which company offers the best car insurance?
The best car insurance company for you will be determined by your specific situation and rating factors. You can typically determine which auto insurance company is right for you based on your age, gender, credit history, the type of car you drive, your coverage choices, and the discounts you are looking for.
What is the cost of car insurance?
US full coverage car insurance costs $1,674 per year on average. The amount you pay, however, will be determined by the same rating factors you use to decide which company is best for you. Finding the best coverage for your needs may require getting quotes from several insurance companies.