Can I Insure a Car Not in My Name? All You Need To Know

Can I Insure a Car Not in My Name
Photo by Ryan West

If you want to insure a car that isn’t in your name, you probably won’t be able to, but there is some wiggle room. According to Policygenius, attempting to insure a car under someone else’s name will usually result in a lot of difficulties. Fortunately, there are some circumstances where it is appropriate, such as when you drive a family member’s car. ‘Can I insure a car that is not in my name?’ you may wonder. Learn everything you need to know about insuring a car in the name of someone else.

Can I Insure a Car Not in My Name?

In general, you cannot insure a car that is not registered in your name. To properly comprehend why, it may be essential to first grasp how insurance works.

Insurable Interest

Insurance is a type of financial instrument. Despite the fact that you are “covering” your vehicle, your insurance does not prevent the damage from occurring. Rather, having auto insurance coverage protects you financially by helping to cover claim expenses if you are in an accident.

Because auto insurance may cover damage to your vehicle as well as damage to another driver’s vehicle (depending on the type of coverage you have), you must have an insurable interest in the vehicle. This means you must have a vested interest in the car you insure. You have no insurable interest in a vehicle if it is not registered to you. As a result, you cannot insure it.

Car Insurance Claims

When an auto insurance claim is paid, the insurer’s cash for the vehicle’s damage is transferred to the insurance policyholder. If you were allowed to insure a car that you did not own, you could theoretically obtain compensation for damage to a vehicle in which you had no financial stake.

Consider the following: You borrow a friend’s car and crash into a utility pole. If you were able to insure the car, you may file a claim under your collision insurance and be compensated for the damage, despite the fact that your friend has a financial stake in the vehicle because they paid for it. You have no claim against the insurer because you have no financial investment in the car.

How to Obtain Coverage for a Car That Is Not Registered in Your Name

Although the only person who can insure a car is the legal owner, it is still a good idea to learn about your other options to ensure you are financially protected from unexpected incidents. In some cases, you may be able to purchase vehicle insurance for a car that you do not own in order to obtain the coverage you require.

#1. Car Rental

When renting a car, you have a few alternatives for auto insurance coverage. If you already have auto insurance on another vehicle, your coverage limits will usually transfer to a rental car.

However, if you do not have full-coverage auto insurance, which includes comprehensive and collision coverage, you will be unable to repair your rental car if it is damaged. If the vehicle is stolen or vandalized, there is no coverage. Before renting a car, you should check with your insurance company to determine how your coverage applies to this other vehicle.

If you don’t have your own auto insurance, you might think about getting the rental company’s insurance. In fact, if you cannot present proof of coverage on another car, you may be asked to purchase coverage from the rental business before renting the vehicle.

#2. Getting a car loan from a friend or family member

Before driving a car that has been leased to you, you should consult with your friend or family member’s insurance provider. Even if you are not listed as a regular driver on the vehicle, you should be covered by their auto insurance policy. This is known as “permissive use,” and it means that the vehicle owner and auto insurer are allowing you to drive the vehicle temporarily so that insurance coverage extends to you while you are using it.

If you borrow another person’s car for an extended period of time, you may need to be included as a driver on the owner’s auto insurance policy. Furthermore, the vehicle’s garaging address may need to be changed to your home so that the insurance can be properly assessed. Using a rented car on a regular basis—the definition of which varies by business—and failing to notify the insurance company could result in a claim being refused for misrepresentation, so it is critical to be open and honest about the situation.

#3. Receiving a vehicle as a gift

Maybe your parents or grandparents just bought a new car and agreed to give you their old one as a gift. They may offer to keep the vehicle insured, but is this the proper course of action?
It is most likely determined by your living situation and age. You may be eligible to retain the vehicle insured on your parent’s policy and add yourself as the vehicle owner if you still live in the same home as your parents (or whoever gave you the vehicle) and are a minor.

If you are a legal adult or live in a different state, you will almost certainly need to obtain your own auto insurance policy. Because insurance providers understand that car registration and insurance transfers take time, leaving the vehicle covered by the preceding owner’s policy for a few weeks may be permissible. However, you should make every effort to obtain an insurance coverage in your name as quickly as possible, and then register and title the car to you.

#3. Business Cars

If you work for a company that provides you with a vehicle, the car must still be insured. Typically, your company will own the vehicle, which means you have no insurable stake in it. As a driver, you will almost certainly be included in your employer’s business auto insurance policy. You are not required or permitted to obtain a personal auto policy for a company car that you do not own.

If you own a business and buy a company vehicle, you will need to acquire business auto insurance. The vehicle must be insured as a corporate vehicle rather than a personal one. If your company is the registered owner of the car, the insurance coverage must be in the name of the firm.

How to Destroy Your Auto Insurance

Obtaining insurance for a car that is not in your name might be difficult at times, but it is far preferable to being uninsured. has identified a few common mistakes that might lead to car insurance cancellation:

  • Not introducing new drivers: If someone in your home, such as a teenager, has recently obtained a driver’s license, your insurance must be informed. Given how expensive juvenile car insurance is, it may be tempting not to mention it, but the penalty can raise premiums even further.
  • Leaving out a move: Assume your child is about to leave for college. They take the car with them and you don’t notify your insurer. The insurance concerns are different when the car is primarily driven in a different ZIP code. Failure to mention this change may result in sanctions.
  • Keeping insurance after a sale: If you sell or give your teen a car, such as any of these wonderful possibilities, they will need to obtain their own insurance policy as the new owner. You can co-title with them or add them to your policy if necessary, but your policy will not carry over without an update.

With these considerations in mind, you’ll be in a better position to insure a car that isn’t registered in your name. Remember that, as Policygenius points out, the titled owner is almost always the one who needs insurance.

Alternatives to Insuring a Rented Car

If you’re having problems convincing your insurance provider to insure a car you don’t own, consider the following workarounds:

#1. Purchase non-owner car insurance.

Non-owner car insurance covers drivers who do not own a car. If you plan on borrowing a car on a frequent basis, non-owner car insurance will cover you for whatever vehicle you drive. Liability insurance covers third-party losses, which may be sufficient for your needs, but it does not cover vehicle loss or damage if you are at fault in an accident.
first, inquire about getting included as a driver to their policy.”

Non-owner car insurance supplements the policy of the car owner. If you frequently drive someone else’s car, you can ask the owner to add you as a driver to their policy.
If you are not the owner of the vehicle but want to ensure that you have liability coverage to supplement what the owner of the car has, non-owner insurance can be an affordable option.

#2. Inquire about being added to the car owner’s insurance policy.

Instead of attempting to obtain car insurance for a vehicle you do not own, it may be easier to add it to the owner’s auto insurance policy. This scenario is only applicable if the vehicle owner is a roommate or family member who lives with you. Most car insurance companies would rather add an additional driver to an existing policy than insure a car that is not registered in your name.

#3. Become a co-owner or title owner.

You may be able to add yourself as a co-owner on the vehicle’s registration depending on your state. You’ll acquire a new title and be able to get an insurance policy on the vehicle once you’re on the title and registration.

Consider requesting the title holder to transfer ownership of the vehicle to you as an alternative. The titleholder must first own the car outright or pay it off completely. Many states permit the gifting of a vehicle, which saves you sales tax. However, this procedure should be double-checked with an accountant. You may save on sales tax, but you will be subject to a federal gift tax on the value of the car.

#4. Count on permissive usage

If the owner insures the car, you don’t need an insurance policy if you only use it rarely. Non-owners of automobiles are granted permissive usage, which implies that licensed drivers who have been granted permission to use the vehicle on occasion are protected without being included in the auto insurance policy.

Can I Insure My Financed Car With Someone Else?

Although someone else may be able to insure your financed car, the primary lien holder is the bank or lending organization. Any insurance payments or cheques would be made payable to the financing company.

Can Another Person Register My Car in Their Name?

Although someone else may be able to insure your financed car, the primary lien is held by the bank or lending institution. Everything is dependent on the state. In most cases, someone else may be able to register your car in their name if you give them permission. You can also add a co-owner to your vehicle registration, which will result in both of your names appearing on the title.

Can You Acquire Insurance on a Car That Isn’t Yours?

This is determined by the insurance company as well as the information you have about the vehicle you are attempting to obtain. There are several exceptions for those who want to purchase car insurance but do not possess a vehicle. The primary condition is that you have an ‘insurable interest’ in the vehicle; yet, many states and auto insurance companies will still refuse coverage to persons who do not own the car.

Is It Necessary to Insure a Vehicle in Your Name?

Most of the time, it will be tough to insure a car that is not in your name. However, you can co-title a car or add someone to your auto coverage as an insured.

Can Another Person Insure My Car if the Title Is in My Name?

In general, no. An individual cannot obtain auto insurance on a car that they do not legally own unless they can demonstrate to the insurance provider that they have an insurable interest in the vehicle.


In general, insuring a car that is not in your name is a risky proposition. In such instances, most insurance firms are hesitant to engage with customers and may simply reject your application. However, if the owner is a family member or a relative and you can demonstrate a vested interest in insuring the car, you could try it.
If it doesn’t work, consider co-owning the car. Simply follow a simple legal procedure, and you should be able to insure the vehicle.


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