If you’re looking to insure a car that’s not in your name, you probably won’t be able to, but there’s a bit of nuance involved. In most cases, you’ll find yourself going through a lot of trouble if you try to insure a car in someone else’s name. Fortunately, there are some instances in which it’s appropriate, such as certain scenarios in which you drive a car owned by another family member. ‘Can I insure a car not in my name?‘ you might ask. Learn everything you need to know about insuring a car in someone else’s name.
Yes, you can insure a vehicle registered in your own name or the name of your spouse, partner or co-habitant, or a lease company under a minimum 12 month lease. If the vehicle is registered to anyone else
Insurable Interest:
Above all else, insurance companies look for insurable interest when crafting policies. Put simply, insurable interest is valid motivation someone might have to get insurance for a vehicle and keep it in good condition. Being the owner of the vehicle qualifies as insurable interest as the motivation is that the car was an investment for the owner. If you don’t own the vehicle, insurance companies are typically a bit wary since that tactic is so often used for fraud.
When you apply for car insurance, you’ll have to provide some kind of insurable interest. This typically takes the form of car registration or car title, also known as a pink slip. When you don’t have the vehicle’s pink slip, demonstrating insurable interest is a bit tougher. Even if you are able to secure insurance, there’s typically a downside for the car’s owner. The owner of the vehicle will likely have to deal with a lapse in insurance, and that can increase premiums for the owner since insurance companies see that lapse as an increased risk.
Before you even pursue proving your insurable interest, you need to make sure that getting insurance for a car that’s not in your name is even possible. Some state laws prevent this practice entirely. In these states, insurance and registration tend to work together. New York, for example, won’t let you register a car unless you have insurance for it. Inherited vehicles should already have someone else’s insurance on the vehicle, so there’s no need to insure a car that you don’t own in that case since it’s already covered.
Co-Titling:
One of the ways you can insure a car you don’t own is to gain partial ownership first by co-titling the vehicle. This means adding your name as a partial owner to the car’s title. While every state has different requirements for this. You and the car owner will likely have to jointly apply for a new title together. This application involves filling out the form, paying a fee, and going to the DMV to sign the title in person.
In some instances, co-titling may be impossible. This is generally the case if the vehicle hasn’t been paid off yet. You can always appeal to the source of the loan to see if co-titling is possible, but that’s not often the case. Should you be able to obtain a co-title, you can easily add an insurance policy to the car as your co-ownership ensures insurable interest.
Keep in mind that there are some downsides to this method. While it can be useful if you and the other owner share a residence and you drive the car often, The insurance premiums will always increase when someone else is added to the policy. In fact, some insurers don’t even allow joint insurance unless the people listed on the policy live together.
Additional Interest:
If you’re looking for the easiest way to insure a car that’s not in your name, you can add the owner of the vehicle to your insurance policy as an additional interest. When you do this, your premiums will not increase as it merely states someone else’s insurable interest. Just remember that the owner or the bank, depending on whether the vehicle is paid off or not, will be the one receiving the claims check should any damage occur in an accident.
Non-Owner Insurance:
There are specific insurance policies designed for this scenario, and they’re known as non-owner insurance policies. These policies exist to cover those who drive someone else’s vehicle every now and then and don’t have any insurance themselves. While this is a fairly easy way to get insurance, it’s essential to consider the amount of coverage you can get.
Coverage under a non-owner insurance policy is severely limited. Only liability coverage is included, which is the basic backbone of every insurance policy. There are opportunities to add personal injury protection in some circumstances along with uninsured motorist insurance, but that’s typically the full extent. Collision and comprehensive coverage or anything designed to protect the vehicle itself isn’t included.
