Auto Insurance Policy: Whose Name Matters?

In most U.S. states, car insurance and registration don't have to be under the same name. This is because the car's owner can be an approved driver on the policy rather than the primary policyholder. However, having your car's registration and insurance in different names can make filing an insurance claim more difficult and cause delays in the claims process.

In most states, auto insurance and vehicle registration don't have to be under the same name

In most cases, you will need to be listed on an insurance policy along with the registered driver. Some insurance companies will refuse to provide insurance for a vehicle without putting the registered owner on the policy. However, other companies will work with you to set up a policy that fits your needs.

If you frequently borrow, rent, or share cars that you don't own, non-owner car insurance may be a good option for you. This type of insurance provides liability coverage in the event of an accident, but it does not cover damage to the car you are driving.

If you are trying to obtain coverage for another member of your household, such as your spouse or child, you may be able to add them to your existing insurance policy. In some cases, you may need to add the other member of your household to your vehicle's registration, meaning you would both be registered drivers of the vehicle.

It's important to note that having different names on your car insurance and registration can lead to complications. For example, it can confuse your insurance company and make the claims process more difficult. Additionally, if the insured driver is not the registered owner, there may be delays in the insurance payout while the details are sorted out.

To avoid potential issues, it is generally recommended that the name on your car registration and insurance policy match. This simplifies the claims process, facilitates effective communication with your insurance company, and helps with accurate record-keeping and identification.

Non-owner insurance is an option for people who don't own a vehicle but want liability coverage in case of accidents

In most states, car insurance and registration don't have to be under the same name. However, some insurance companies will only provide insurance for a vehicle if the registered owner is on the policy. Other companies will work with you to set up a policy that fits your needs.

If you are not the owner of a vehicle but are a frequent driver, you may want to consider non-owner insurance. This will ensure that you are covered in the event of an accident, even if the owner of the vehicle has insufficient insurance. Non-owner insurance can also be useful if you are between cars or need to provide proof of insurance after a major violation such as a DUI.

It is important to note that non-owner insurance is not available to those who live with someone who owns a car. In this case, the car owner must list all members of the household as secondary drivers on their insurance policy.

You can add the owner to your policy as an additional interest

While it is generally the case that a person cannot get an auto insurance policy on a car that they do not legally own, there are some exceptions. One such exception is to add the owner to your policy as an additional interest.

An additional interest is a third party that has a vested interest in the insured item. In the case of auto insurance, this could be a lienholder, such as a lender or leasing company, who has a financial stake in the vehicle. By adding them as an additional interest, they will be notified of any changes to the policy, including cancellations, lapses in coverage, and renewals. This ensures that they are aware of the level of coverage and can protect their investment.

It is important to note that an additional interest does not receive coverage under the policy and cannot file claims. They are simply kept informed of the policy status and any changes. Adding an additional interest typically does not increase the premium for the policyholder.

In contrast, an additional insured is a person who is jointly insured on the policy and has a financial stake in the vehicle. They are covered under the policy and have the right to make claims. For example, if you lease a car, the leasing company should be named as an additional insured on your policy so that they receive payment in the case of a total loss.

When deciding whether to add someone as an additional interest or additional insured, consider whether they need the benefits of coverage under your policy. If they do not require coverage, they can simply be added as an additional interest to be kept informed of any policy changes.

You can get added to the vehicle owner's policy

If you are a driver of a vehicle but are not the owner, you can ask the owner to add you to their auto insurance policy. This is a simple process and can usually be done online or over the phone. The vehicle owner will need to contact their insurance company and provide your name and other personal details.

Adding a driver to an insurance policy means they are insured under that policy when they drive the car. This means that if they get into an accident, the insurance company is more likely to cover the damage than for an unlisted driver.

Most insurance companies allow, or even require, the policyholder to add another driver to their car insurance policy if that person drives the insured car regularly or shares the same permanent residence. Some states may allow the policyholder to exclude a driver from being covered by the policy.

If you are added to someone's insurance policy, be aware that your driving history may affect their insurance premiums. For example, if you have a history of accidents or traffic violations, their insurance costs may increase.

If you are the owner of the vehicle, it is important to notify your insurance company of anyone who operates your vehicle regularly.

You can get a co-title with the vehicle's owner

If you want to get insurance for a car that you don't own, one option is to get a co-title with the vehicle's owner. This means that both of your names will be on the car's title, and you will both be recognised as owners of the vehicle.

To set up legal co-ownership, you can put both names on the title of a new car. You will need to specify how you are holding the car—either as joint tenants or as tenants in common. As joint tenants, the car will automatically go to the other person upon one co-owner's death. As tenants in common, each co-owner can leave their half of the car to whoever they choose.

If you are buying from a dealer, you might need to take out a loan together. The lender might require that both co-owners are on the loan, or you can choose to take out the loan in one person's name and put both names on the title. If you choose the latter option, you will need a joint ownership agreement. This should include details about the loan, a statement that you own the car equally, information on how the person not on the loan will contribute, and details on how either owner can buy out the other.

If you already own a car, you can sell a share of it to someone else, or you can buy a share of someone else's car. You will need to follow your state's procedures for putting another person's name on the registration and title. Check your state's Department of Motor Vehicles (DMV) for the specific requirements. In New York, for example, you will need to apply for a new registration and title certificate in both owners' names.

Before purchasing a share of someone's car, be sure to check for any liens on the car. A lien means that the owner owes someone money, and the creditor can take the car if the debt is not paid. Ask to see copies of the car's title and registration, and get the vehicle identification number (VIN) to check the car's history.

In most states (41 out of 50), you will need to get the permission of the lender before you can put a co-owner's name on the title. Contact your state's DMV to ask about the specific process.

It's important to note that even with co-ownership, you may still encounter challenges with insurance companies. They might not add the second driver to the policy if they are not an owner or family member. In this case, they may not cover an accident if the second owner is driving. Therefore, it's crucial to carefully review insurance policies and discuss options with insurance providers.

Frequently asked questions