Car Insurance for Vehicles You Don’t Own

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Margaret Huntley 11-06-2021

Can I Insure A Car That’s Not In My Name?

can you insure a car that is not in your name

Though it’s not very common, there are some justifiable reasons for wanting to insure a car that you don’t own. Perhaps the car belongs to a family member but you are the one driving it most often. Or perhaps you occasionally drive your live-in partner’s vehicle that they own. 

The short answer to whether you can insure a car that you don’t own is no. The long answer has to do with specific circumstances and work-arounds that make having insurance while driving a car that is not in your name possible. This article will give you a long answer. 

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Insurable Interest

Insurance companies prefer to only cover people who have an insurable interests in the vehicle they wish to insure. Essentially what this means is that you have a financial stake in the car. Without such a stake, there is a high risk of insurance fraud. The easiest, and most common way that this insurable interest is proven is through proof of ownership. 

When You Cannot Insure a Car That Isn’t in Your Name?

There are a few reasons that you may be prohibited from insuring a car you don’t own:

  • You have no insurable interest 
  • You live in a state that prohibits insuring a car, not in your name 
  • You are not legally allowed to drive in your state 
  • The car’s owner does not grant you permission to insure the car in your name

Options for Insuring a Car That You Don’t Own

If none of the exclusions listed apply to you, there are some options available. But it is important to note that if you do manage to get insurance on a car that you don’t own, the owner of the car will have higher premiums since insuring other drivers is seen as a high risk behaviour. 

That being said, here is what you may be able to do:

  • Co-titling: Co-titling is when there are two names listed as car owners. This can only be done if the car is fully paid off and if you live with the other owner. The reason for the necessity to live with the other owner is because different zip codes have different risks associated with them, which affects insurance rates.
  • Add Vehicle to Your Existing Policy as Additional Interest: Including another person’s vehicle as one of your additional interests will add someone else’s vehicle as an insurable interest to you. However, any claims made on that vehicle will go to either its owner or, in the case that the vehicle is not fully paid off yet, the bank. You will not receive claims on the vehicle.
  • Add Yourself As a Driver to Owner’s Policy: It is possible to add your name to the owner’s insurance policy as another driver. Though, doing this will increase the owner’s rates.
  • Get A Non-Owner’s Insurance Policy: There is such a thing as insurance policies for non-owners. You should know that these policies are rare and that they do not offer very much coverage. Typically you will only receive liability coverage, and in some rarer cases, you may receive personal injury coverage

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Importance of Car Insurance

Despite the possible hassle of insuring a car that you do not own, it is a good thing to look into if you are driving another person’s vehicle. Insurance offers peace of mind and valuable funds in times of need. It is always better to be insured than it is to not be. 

Margaret HuntleyMargaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.