Bet Your Life: The Basics Of Life Insurance

Is It Possible To Insure A Car That's Not In Your Name?

It's possible to insure a vehicle that does not have your name on the registration. However, there are a few things you need to understand before you attempt it. You cannot just insure any car you want. It also matters which insurance company you deal with, and what state you live in.

Why Are You Insuring Someone Else's Vehicle?

There are any number of situations that can come up that can lead to you insuring another person's car.

  • Insuring a friend's car to help them out
  • Insuring a spouse's car
  • Insuring your child's car
  • Insuring a car that you're borrowing
  • Insuring a vehicle while waiting for the registration and title

It matters why, because you may need to explain it. Otherwise, you may have to prove you actually have access to the car by getting its VIN. Insurance companies do not want you insuring vehicles that you have no physical access to.

In addition, the auto insurance company wants to make sure the person that owns the vehicle isn't attempting fraud. For example, if your friend has numerous violations, it's possible they're trying to avoid paying high premiums by asking you to insure the vehicle.

Who Owns the Car? Who Is Driving It?

If you live with the owner of the car, it's possible you can add the person to your current insurance policy if you have one. This is a typical route people take with family that lives with them. As long as the person driving the car has a license to drive, then it's usually okay.

It's even sometimes okay to go through the process and name the primary driver as somebody other than yourself. No matter the circumstances, there's usually a path to insurance. The more degrees of separation between you and the owner of the car, the harder the process becomes.

Why Your Insurance Carrier Matters

Not all insurance carriers like the idea of insuring vehicles for non-owners. You may have to shop around. Even among insurers that don't mind your request, insurable interest can come into play. Some insurers have specific "non-owner" policies for this specific purpose. Some others may flat-out refuse you.

Be Completely Honest

The most important thing you can do when insuring someone else's vehicle is to stay honest. Do not try to hide what you're doing. Speak frankly about it with the insurance carrier. Even if they refuse you, they may still give you beneficial instructions.

For example, the insurer may direct you towards re-registering under both yours and the owner's name. The insurer may also let you know about relevant state regulations that forces them to refuse you. Just remember to tell the truth, and there's a good chance an auto insurer can come up with a solution for you.


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