Can I insure a car that isn’t in my name?

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Insuring a car that isn’t in your name can be a complex process, but it’s possible under certain circumstances. Generally, insurance companies require the policyholder to have an insurable interest in the vehicle, meaning you must have a vested financial interest in its protection. This typically applies to situations where you regularly use the car, such as when it belongs to a family member or is leased.

To get insurance, you may need to be listed as an additional driver on the owner’s policy or obtain a non-owner car insurance policy. Non-owner car insurance provides liability coverage when driving a vehicle you don’t own, which can be useful if you frequently drive cars belonging to others. Some insurers might allow you to insure the car if you have a strong reason for doing so, like having a legal responsibility for the vehicle. It’s important to discuss your specific situation with an insurance agent who can guide you through the available options and ensure you comply with all requirements.

Can you insure a car you don’t own?

Yes, it is possible to insure a car you don’t own, but the process can be more complex than insuring a vehicle registered in your name. Insurance companies typically require the policyholder to have an insurable interest in the car, meaning you would suffer a financial loss if the vehicle were damaged or lost. This is common in situations where you are the primary driver of a car owned by a family member, partner, or leased vehicle.

To insure a car you don’t own, you might consider being added as an additional driver on the owner’s insurance policy, or you could obtain a non-owner car insurance policy. Non-owner car insurance provides liability coverage when driving a vehicle you don’t own, which can be useful if you frequently drive cars belonging to others. It’s essential to communicate with insurance providers to understand their specific requirements and to ensure that you have the appropriate coverage for your situation.

Adding a car to your insurance policy if it’s not in your name

If you need to add a car to your insurance policy that isn’t in your name, you’ll need to follow specific steps and meet certain criteria. Some reasons why you might insure a vehicle you don’t own include:

• You have a financial stake or insurable interest in the car.
• You’re related to or live in the same household as the vehicle owner.
• Someone is moving in with you, and you may share the vehicle.

Though most major insurers will not sell you an insurance policy on a car that is not legally yours, some major insurers, like Progressive, say they will.

How to insure a car you don’t own

Insuring a car other than your own can be difficult, but there are a few ways that can help: 

Share the same address with the car owner

If you live at the same address as a car owner, it’s easy to be added to their insurance policy. The vehicle owner just needs to contact their insurance company and tell them that they would like your name to be included in their auto insurance policy.

Add your name to someone else’s auto insurance

Adding yourself to the title of a car can be difficult and expensive if you don’t own it. But to get insured, you will have to show the insurance company that you depend on this vehicle to get supplementary coverage from the insurer.

Add a vehicle owner to your policy

You may consider adding the vehicle owner’s name to your insurance policy. This will ensure that the vehicle is covered in case of accidents or damage.

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Alternatives to insuring a car you don’t own

If you have trouble convincing your insurance company to insure a car you don’t own, there are workarounds to consider:

Buy non-owner car insurance 

Non-owner car insurance is car insurance for drivers who don’t own a car. If you plan on borrowing a car regularly, non-owner car insurance will provide liability coverage for any vehicle you drive. Liability insurance pays for damages you cause to third parties, which may be enough for your needs, but it won’t cover the vehicle against loss or damages if you’re at fault in an accident.

Non-owner car insurance acts secondary to the car owner’s insurance policy. And if you drive someone else’s car regularly, you can ask the owner to add you as a driver to their policy.

Suppose you’re not the owner of the vehicle but want to make sure you have liability coverage to supplement whatever the owner of the car has. In that case, non-owner insurance can be an option with affordable insurance rates.

Ask to get added to the car owner’s insurance policy

Instead of trying to buy car insurance for a car you don’t own, it may be easier to get added to the owner’s auto insurance policy instead. This scenario only works if the vehicle owner is your roommate or family member who lives with you. Most car insurance companies are more willing to add an additional driver to an insurance policy than to insure a car that’s not in your name.

Become a co-owner or owner on the title 

Depending on your state, you may be able to get added as a co-owner on the vehicle’s registration. Once you’re on the title and registration, you’ll get a new title and be able to get an insurance policy on the vehicle.

As an alternative, consider asking the title bearer to transfer the vehicle ownership over to you. The titleholder must own the car outright or pay it off in full first. Many states allow the gifting of a vehicle, saving you sales tax. However, it’s best to double-check this method with an accountant. You may save on sales tax but end up subject to a federal gift tax on the car’s value.

Rely on permissive use 

If you’re planning to use the car occasionally, you don’t need an insurance policy if the owner already insures it. Insurance policies give non-owners of vehicles permissive use, which means licensed drivers who have been given permission to use the vehicle occasionally are covered without being named on the auto insurance policy.

Can someone else insure my financed car?

Although someone else may be able to insure your financed car, the bank or lending institution is the primary lien holder. Any insurance checks or payouts would be paid to the financing company.

Can someone else register my car in their name?

Although someone else may be able to insure your financed car, the bank or lending institution is the primary lien It all depends on the state. Generally, someone else may be able to register your car in their name, but only if you give them permission. You may also add a co-owner to your vehicle registration, showing both your names on the title.

Cynthia Bowman

Contributing Researcher

 

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Cynthia Paez Bowman is a personal finance writer with degrees from American University in International Business and Journalism. Her work has been featured in MSN, Brex, Bankrate, Freshome, The Simple Dollar, GOBankingRates, and more. Cynthia is based between Las Vegas and Europe. In her spare time, she travels throughout Africa and the Middle East helping women entrepreneurs develop and grow their businesses.