Auto Insurance Trade: Can I Insure a Car Not In My Name?
Auto Insurance Trade: Can I Insure a Car Not In My Name?
Can I insure a car not in my name? Know if you can add the owner to the policy or add yourself to their policy which is non-owners car insurance.
Can I Get Car Insurance On a Car That Is Not In My Name?
‘Can I insure a car not in my name’ is the question that might come into the minds of most people. And if you are also one of them, this post will remove all your doubts regarding it.
There is no direct lega way you can insure a vehicle that you do not own. But multiple alternatives can help you continue for this as a second person. Remember that driving someone else’s car or a vehicle gifted to you that is not registered on your name does not make you its owner. So, in these scenarios, it is car owner’s duty to insure his/her ride.
Brief Overview: Can You Insure a Car That’s Not in Your Name?
As mentioned in the start you can not put insurance on a car not in your name. But some other ways you can do it include the following:
- You can add the car owner’s name in your auto insurance quote and vice versa
- You can ask the auto owner to transfer his/her policy registration to your name
- You can also get a co-title with the car’s owner
- Last but not least, you can also apply for a non-owner car insurance policy
Let’s discuss things in more detail!
Digging Deeper!
You must be seeking an answer to the query ‘can I insure a car not in my name’. The straightforward answer is ‘NO’. and the following reasons support this answer:
Insurable Interest
While talking about insurance, just remember it is a financial product. If you get auto insurance for your vehicle, it doesn’t mean that your vehicle is safe from any damage.
Insurance is a financial protection aid that helps you to cope up with the loss caused by any accident or climate weather. If your car is damaged, then your auto insurance provides you with complete financial protection to fight against these calamities.
Auto insurance pays for two conditions:
- If you have this insurance and your car is damaged due to some natural disasters, you will claim this aid.
- If someone else vehicle is damaged due to your mistakes, auto insurance still helps you to tolerate these all expenses. All you have to do is to know about your coverage policy.
You need to have something called “insurable interest” in the vehicle. This means you must have a financial interest in the vehicle you want to insure. Usually, the person whose name is on the vehicle registration has this insurable interest. But there can be exceptions.
For example, someone who has taken out a loan to buy a vehicle might also have an insurable interest.
Auto Insurance Claims
This includes the situation when your auto insurance claim is paid and all your vehicle damage is also paid. If you were allowed to insure an automobile you do not own, you may receive compensation for damage to a car in which you have no financial interest.
Just imagine that your friend’s car crashed into a serious accident. If you could insure the car, you can easily file a claim and get back for the damage, even though your friend paid for it and had a financial interest in it. Because you have no financial interest in the car, you should not receive any compensation from the insurance company.
What Does Non-Owner Insurance Cover?
If you are thinking ‘Can I insure a car not in my name?’, then non-owner car insurance is the solution for you. Non-owner car insurance policy is available at different insurance companies. It may include the provider’s permission and the state you live in:
For a brief detail, have a look at the following table:
| Typical Coverage | Optional/State-Required Coverage | Not Included |
|---|---|---|
| Bodily Injury (BI) and Property Damage (PD) Liability Coverage | Medical Payments Coverage (MedPay) or Personal Injury Protection (PIP) | |
| Comprehensive Coverage | Uninsured/Underinsured Motorist (UM/UIM) Coverage | |
| Collision Insurance |
Check State Laws About Car Insurance
Can I insure a car not in my name requires to know at first whether your state law allows auto insurance even if you have not your own car. Different states require the same identity of vehicle registration and insurance card.
On the other hand, in some other countries, before your car registration, you need to get insurance which is a better reply to those who don’t know about can i get insurance on a car that is not in my name.
A deep research concludes that the mentioned seven states don’t require insurance to register a vehicle:
| State Requirement | Description |
|---|---|
| Mandatory Insurance | Only New Hampshire and Virginia require car insurance to register a vehicle. |
| Texas | Texas adopts the required insurance policy. 30/60/25 minimum liability coverage is necessary ($30,000 for each wounded person, $60,000 for physical injury per accident, and $25,000 for property damage). |
| Alternatives to Insurance | Alternatives are preferred for vehicle registration instead of traditional insurance for these states. |
| Mississippi | None (but posting a crash deposit or bond is required for financial responsibility) |
| New Hampshire | None |
| North Dakota | None |
| Tennessee | Proof of financial responsibility is required by posting a bond or making a cash deposit of $65,000 |
| Virginia | Uninsured motor vehicle fee of $500 required |
| Washington | Self-insurance (only for fleets exceeding 25 vehicles) or a certificate of deposit or liability bond of at least $60,000 |
| Wisconsin* | Check Local Regulations |
Alternatives to Insuring a Car That’s Not in Your Name
Putting an insurance on a car that is not in your name is not a big problem nowadays because you can find different alternatives which keep you safe from getting separate insurance for the vehicle you don’t own.
Try to Consider These Options:
- Become the Owner: ‘Can you put insurance on a car not in your name’ was a problem in the past but now, different alternatives have solved this issue. If you borrow a car permanently, you must transfer the car in your name legally. This keeps you safe from different insurance problems.
- Get Added as a Driver: If the owner’s insurance company allows it, ask them to add you as a driver on their policy. This is usually easier if you reside together. Request to be included as a driver on the owner’s insurance policy, if that is permitted by the insurance company. Living together usually makes this easier.
- Become a Co-owner (if applicable): Sometimes you are a co-owner of a car. This situation demands the proof of can i add a car to my insurance that is not in my name. Here, your insurance agent guides you to understand this all situation. However, if the vehicle is on loan, then you might not be a co-owner of the car or probably would not be able to apply for car insurance.
- Non-Owner Insurance: This is a wise decision if you occasionally rent or borrow cars. You can drive someone else’s vehicle with liability coverage if you have non-owner insurance.
How to Handle Common Scenarios?
| Scenario | How to be insured while driving |
|---|---|
| Drive a parent’s car while living at home | Add yourself as a driver on your parent’s insurance policy. |
| Regularly drive a roommate’s car | Add yourself as a driver on your roommate’s policy. |
| Occasionally borrow the car of a friend or relative who doesn’t live with you | You will probably be covered under the owner's policy. Cars that are infrequently used by drivers with the owner's consent are often covered by a basic vehicle insurance policy. However, you might wonder, can I add a car to my insurance that is not in my name? It's important to check with your insurance provider to understand the specifics of adding a car to your policy that you do not own. |
| Drive a parent’s car while away from home at school | If you drive your parent’s car then being a parent you should add the person to the insurance and inform your insurance company about them. |
| Drive a parent’s car once you’ve moved out | It is necessary to purchase your own insurance policy. It can be a confusing situation if you buy a car registered at one address and keep it somewhere else. Remember, car insurance rates vary depending on the locations where the car is kept. Additionally, if you don't live with someone, insurance companies typically won't allow you to continue driving their car under their policy. In this case, you might wonder can I insure a car not in my name. There are a couple of options. Your parent or the car's owner could sell or transfer the vehicle to you, allowing you to register it at your address and get your insurance. Alternatively, they might be able to add you as a named driver on their policy, but this depends on your living situation and the insurance company's rules. |
| Regularly drive the car of a friend or relative who does not live with you | Talk about having your name added to the vehicle title if you frequently use someone else's automobile so you may purchase insurance for it. This is especially crucial if the owner no longer uses the vehicle and is not, thus, covered by their insurance. |
A Few Related Queries
What is non-owner car insurance?
Non-owner car insurance covers complete liability coverage in case you drive a car that you do not own and hit someone while driving the car.
In what situations would I need non-owner car insurance?
There are two citations under which you need non-owner car insurance:
If you frequently borrow a car from someone who does not live at your residence
If the owner’s insurance doesn’t cover you.
Can I add someone else to my insurance policy as a driver?
It might be possible, but not sure. Basically, it depends on the company you purchase your vehicle insurance from and your condition as a driver.
