Insuring A Vehicle: Ownership Flexibility

How to Insure a Vehicle Not in Your Name

It is generally difficult to insure a vehicle that is not registered in your name, and in some states, local laws prohibit it. However, there are a few ways to get coverage for a car you don't own. One option is to add the owner of the vehicle to your insurance policy as an additional interest, proving that you have a financial stake in the car. Another option is to get added to the vehicle owner's insurance policy, especially if you live with them. Alternatively, you can co-title the vehicle, becoming a partial owner by adding your name to the car's title, although this may increase insurance premiums. Finally, you can purchase a non-owner insurance policy, which provides liability coverage for those who drive a vehicle they don't own.

Non-owner insurance

• Borrow cars often and don't have their own policy
• Use car-sharing or short-term rental services
• Rent cars often

To get a non-owner policy, you will need to work with an insurance agent or insurance provider. You typically cannot select this option during the online quote process. You will need to provide your driver's license and payment method, along with information on your driving history and the amount of coverage you want to purchase.

When Not to Get Non-Owner Insurance

• If you usually borrow a roommate's car, it may be more convenient to get listed on their policy.
• If someone in your household has a car, it may be more cost-effective to get listed on the owner's policy.
• If you are required to drive a company car for work, non-owner coverage is not necessary.
• If you have a car insurance policy that covers you when you rent cars, non-owner insurance may be unnecessary.

State Laws

It's important to check your state's laws regarding insuring a car you don't own. Some states, such as New York, require the names on the vehicle's registration and insurance card to match. Additionally, every state except New Hampshire and Virginia requires car insurance, and in most states, you need to have auto insurance before you can register a car.

Adding the owner to your policy

Adding the owner of the vehicle to your insurance policy as an additional interest is one way to insure a car that is not in your name. This method tells your insurance provider that you are the primary driver of the vehicle, even though you are not the owner. However, it is important to note that this option can be challenging as you will need to prove to the insurance company that you have a financial stake or "insurable interest" in the vehicle. This means that you must demonstrate that you would be severely affected if the car were to be damaged or stolen.

To add the owner of the vehicle to your policy, you will need to contact your insurance provider and provide them with the necessary information. This may include details about the vehicle, such as the make, model, and value, as well as information about the owner. It is also essential to be transparent about the situation and inform the insurance company if you plan to drive the vehicle regularly.

Keep in mind that not all insurance companies may allow this option, and it is always best to check with them directly to understand their specific policies and requirements. Additionally, adding the owner of the vehicle to your policy may result in increased insurance premiums, as insurance companies consider the addition of another person to the policy as an increased risk.

Before pursuing this option, it is also crucial to check your state's laws and regulations regarding insurance and vehicle registration. Some states, such as New York, require the names on the vehicle's registration and insurance card to match, which may pose challenges when trying to insure a car that is not in your name.

Getting added to the owner's policy

If you're looking to get added to the owner's policy, you'll need to make sure that the owner of the vehicle is your roommate or family member who lives with you. Most car insurance companies are more willing to add an additional driver to an insurance policy than to insure a car that's not in your name.

If you live with the owner of the car, getting added to their policy should be easy. This is because providers are more likely to insure family members who live in the same household. It's common for a spouse or a teen to be added to a car insurance policy as a listed driver.

To get added to the owner's policy, the vehicle owner just needs to contact their insurance company and tell them that they would like your name to be included in their auto insurance policy.

However, if you borrow someone else's car for an extended period, you may need to be listed as a driver on the owner's auto policy. Additionally, the vehicle's garaging address may need to be updated to your address so that the policy can be rated correctly. Regularly using a borrowed car—the definition of which will vary by company—and failing to notify the insurance company could result in a claim being denied for misrepresentation, so it is important to be transparent about the situation.

If you frequently borrow cars but don't always borrow the same car, you may be a good candidate for non-owner car insurance. These policies usually provide liability coverage and may also offer personal injury protection, medical payments, or uninsured motorist coverage.

Co-titling the vehicle

Gaining partial ownership by co-titling the vehicle is one way to insure a car that is not in your name. This involves adding your name as a partial owner to the car's title. While the requirements for co-titling vary from state to state, you and the car owner will likely need to jointly apply for a new title, fill out a form, pay a fee, and go to the DMV to sign the title in person.

Co-titling may not be possible if the vehicle hasn't been paid off yet, as the lender may not allow it. If the vehicle is financed, you can appeal to the loan source to see if co-titling is an option. Should you be able to obtain a co-title, you can easily add an insurance policy to the car as your co-ownership ensures insurable interest.

It's important to note that there are some downsides to co-titling a vehicle. Insurance premiums will increase when someone else is added to the policy. Additionally, some insurers don't allow joint insurance unless the people listed on the policy live together, as the ZIP code is a major factor in gauging risk.

Relying on permissive use

Permissive use can apply to almost anyone. It can be expressed or implied permission to drive the vehicle. Expressed permission is verbal or written, such as when someone asks to borrow your truck, and you reply, "Yes." Implied permission does not need to be spoken and is generally based on past behaviour, the relationship between the people involved, or the lack of objection from the policyholder. For example, your child uses your car to go to the store since it is first in the driveway, or your roommate takes your car without permission to pick up a friend from the airport since you lent it to them last time.

There are some exceptions to permissive use. Commercial use of a vehicle is typically not covered under a standard auto insurance policy. Excluded drivers, who are specifically named in an auto insurance policy and not covered while operating the insured vehicle, are another exception. Non-permissive use, when the car is used without the owner's permission, and frequent use, when a regular user of the car might need to be listed as an additional driver, are also not covered under permissive use.

Permissive use can have costly repercussions, so it is essential to know if your insurance company allows permissive drivers and what it means for your policy. While most large-scale car insurance providers offer permissive use car insurance, some smaller companies do not. Some policies may also provide lower coverage limits for permissive users than for listed drivers. It is a good idea to consult your policy documents and check with your coverage provider about exclusions or limits related to permissive use.

Frequently asked questions