Navigating Another Person's Auto Insurance: What You Need To Know

There are many reasons why someone might want to insure a car that is not their own. For example, a parent might want to insure their child's first car, or a grandparent might want to insure a grandchild's car. It is possible to insure a car that is not in your name, but there are some important things to consider. Firstly, insurance companies usually require that the owner of the vehicle is the policyholder, and some will not insure a car if the policyholder and owner are not the same. Secondly, insuring someone else's car can be considered fraud if the correct procedures are not followed or if information is misreported to the insurance company. Thirdly, if the primary driver has a poor driving record, insurance rates will be high, even if the policy is in someone else's name. Finally, it is worth noting that car insurance usually follows the car, not the driver, so if someone borrows your car and has an accident, your insurance will usually be the primary payer for damages.

If you're a teen driver

In some states, you will need to be added to your parents' insurance policy as soon as you start driving with a learner's permit. In other states, you can wait until you have your driver's license. However, it is important to check with your state's requirements to ensure that you are complying with the law.

When it comes to insurance costs, adding a teenager to a parent's policy is usually cheaper than getting their own policy. The average cost for adding a teen between the ages of 16 and 19 to a parent's policy is $299 per month, while the cost of a teen policy is $468 per month. Female teen drivers are also generally cheaper to insure than male drivers.

There are a few ways to save money on car insurance for teens. Many insurers offer discounts for good grades, so if you maintain strong grades in school, you may be eligible for a discount. Additionally, participating in an approved driving education course can also help lower your rates.

Another way to save money is through a telematics program, which monitors your driving habits and offers discounts for safe driving. If you plan on attending college away from home and won't need to drive, you can also look for insurers that offer discounts for students without a car.

Finally, remember that insurance rates tend to decrease as you get older and gain more driving experience. So, while insurance may be expensive as a teenager, it will become more affordable as you get older.

If you're not the primary driver

If you did not have permission to drive the car, your auto insurance will be considered primary. If you don't have insurance, you may need to rely on the owner's policy to cover the damages, but this will depend on the laws of the state where the accident occurred. In some states, the owner may be held liable for damages if they failed to take reasonable steps to prevent an unauthorised driver from using their vehicle.

It's important to note that if you were driving under the influence of drugs or alcohol, or without a valid license, the owner's insurance company may deny the claim. Additionally, even if you had permission to drive, the owner may still be held liable for damages if they negligently entrusted their vehicle to you, knowing that you were a risky driver.

In any case, it's always a good idea to consult a personal injury attorney to help you navigate the complex legal issues that may arise following a car accident.

If you're a high-risk driver

High-risk drivers typically pay much higher insurance premiums because providers view them as greater liabilities. While there's no such thing as cheap insurance for high-risk drivers, certain providers offer more affordable rates than others. Here are some tips to help you find insurance as a high-risk driver:

• Submit a high-risk auto insurance quote to a company that specializes in high-risk insurance, such as isure. They will check with their insurer partners to find the best rate for you.
• Compare rates with a variety of partner providers to find the cheapest high-risk insurance.
• Consider paying your insurance upfront, as some companies offer a slight discount for doing so.
• Drive one of the safest cars on the road, as this can help reduce your premiums.
• Install an active theft alarm in your vehicle, as this can also lower your premiums.
• Refrain from driving to and from work, as the fewer miles you drive, the lower your premiums may be.

Remember, accidents and other traffic violations remain on your driving record for three years. So, if you can maintain a clean driving record for that period, you may be able to remove the high-risk classification and get better rates.

If you're adding someone to your policy

Most insurance companies allow you to add drivers to your policy, and this can usually be done online or over the phone. Some companies may require that you add any licensed drivers in your household to your policy, and it's generally a good idea to do so anyway to ensure that any accidents they're involved in are covered. This includes roommates, partners who move in, and teenage or college-aged children who drive your vehicle.

If someone who doesn't live with you only borrows your car occasionally, you don't need to add them to your policy, as they will typically be covered under "permissive use". This means that your car insurance coverage extends to other drivers provided you gave them permission to use your car. However, if someone who doesn't live with you drives your car regularly, you should add them to your policy.

Adding a driver to your policy may or may not affect your premiums. If you add an inexperienced or teenage driver, your rates will likely increase. However, if you add an adult with a clean driving history, your premiums may even decrease.

If you're insuring a car you don't own

It is possible to insure a car that is not in your name, but it can be challenging. Here are some options for insuring a car that you don't own:

Add the vehicle owner to your policy as an additional interest

Listing the owner as an additional interest does not raise the cost of the car insurance policy. It simply states that someone else has an insurable interest in the vehicle. This is similar to having a loan on the vehicle, where a bank or owner has a financial stake even if they don't drive it. The owner can control the level at which the vehicle is covered. If you damage the vehicle, the claims check would be written to the owner. Most car insurance companies allow this, but if your current provider does not, you may need to switch providers.

Get added to the vehicle owner's policy

This is a good option if the owner of the vehicle shares a residence with you. However, most auto insurance companies do not like to cover a driver who lives at a different address to the one listed for the policyholder. The insurer might require you to live with the owner to be covered. Adding yourself to the policy will also increase the premium, regardless of your driving record.

Get added to the vehicle title or registration

Being on the title or registration gives you "insurable interest", which means you prove to the insurance company that it is in your best interest to prevent damage to the vehicle. With insurable interest, you can buy auto insurance without any hassle. If the car is fully paid off, you can add your name to the title, but this can be difficult if the car is still under a loan.

Buy a non-owner insurance policy

A non-owner auto insurance policy is designed for people who drive another person's vehicle sparingly but do not have insurance themselves. This coverage will usually work as a complement to the vehicle's primary policy. For example, if you borrow a friend's car and get into an at-fault accident, a non-owner policy would only apply if you exhaust the property damage and bodily injury liability coverages carried by your friend. A non-owner policy does not cover damage to the vehicle you are driving or your own injuries after an accident. It also tends to be cheaper than standard car insurance.

Frequently asked questions