{"id":5131,"date":"2023-11-03T10:30:56","date_gmt":"2023-11-03T10:30:56","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=5131"},"modified":"2023-11-03T10:30:59","modified_gmt":"2023-11-03T10:30:59","slug":"can-i-insure-a-car-not-in-my-name","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/car-insurance\/can-i-insure-a-car-not-in-my-name\/","title":{"rendered":"Can I Insure a Car Not in My Name? All You Need To Know"},"content":{"rendered":"

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.<\/p>

Can I Insure a Car Not in My Name? <\/span><\/h2>

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.<\/p>

Insurable Interest <\/span><\/h3>

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.<\/p>

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.<\/p>

Car Insurance Claims<\/span><\/h3>

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.<\/p>

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<\/a> 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.<\/p>

How to Obtain Coverage for a Car That Is Not Registered in Your Name<\/span><\/h2>

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.<\/p>

#1. Car Rental<\/span><\/h3>

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.<\/p>

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.<\/p>

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.<\/p>

#2. Getting a car loan from a friend or family member<\/span><\/h3>

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.<\/p>

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\u2014the definition of which varies by business\u2014and 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.<\/p>

#3. Receiving a vehicle as a gift<\/span><\/h3>

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.<\/p>

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.<\/p>

#3. Business Cars<\/span><\/h3>

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.<\/p>

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.<\/p>

How to Destroy Your Auto Insurance<\/span><\/h2>

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