Can I Insure a Car Not in My Name?
A car is typically purchased and maintained by the person who owns it. However, this is not always the case. Adult family members who share a vehicle, for example, may split insurance costs.
Under the most common scenarios, insurers may allow non-owners to insure vehicles. However, insuring someone else's car isn't always simple. It may be determined by the insurance company you choose and the insurance laws in your state.
Can I Insure a Car I Don’t Own?
The person who insures a car usually has an insurable interest in the property. They make the payments and their name is on the title, so they purchase insurance in case of a car accident.
The person who owns the car and the person who drives the car, however, are not always the same. Scenarios in which you would purchase insurance for a car you do not own include:
- A college student who drives their parent's car to college but purchases their own insurance policy.
- An elderly relative who no longer drives has offered you the use of her car.
- A high school graduate planning to further their education who can afford insurance but cannot afford their own vehicle.
There are a variety of reasons why you might need to purchase auto insurance for a vehicle that you do not own. But will your insurance company let you? It may be determined by your state of residence, whether you are related to the car owner, and whether you and the owner share the same address.
How to Get a Car Insured When You Don’t Own It
Reasons for insuring someone else's vehicle vary, as do the conditions under which you can insure someone else's vehicle. However, in general, you have the following options:
Ask the Owner to Add You to the Automobile’s Policy
If the car owner is a relative and you share the same address, request that they add you to the driver list on their auto insurance policy. In some cases, a roommate may add you as a driver to their policy, but only if they own the vehicle.
If each member of the household owns a vehicle, they will require separate car insurance policies. In addition, if you share a car, your insurers may allow you to extend coverage to each driver.
Purchase Non-Owner Insurance
If you don't own a car but occasionally borrow one from a friend or relative, non-owner insurance may provide the coverage you require. Non-owner policies are frequently limited to bodily injury liability and personal property liability. Some non-owner policies may also include medical payments, personal injury protection (PIP), uninsured and underinsured motorist coverage, and rental car liability.
Non-owner policies, on the other hand, do not include collision and comprehensive coverage. So, if you borrow a car from a friend and are at fault in an accident, your non-owner insurance policy will help pay the other driver's medical and property damage costs, but it will not pay to repair your friend's vehicle.
If you choose a non-owner policy, you should be aware of the coverages carried by the vehicle's owner, as well as whether their collision and comprehensive coverages extend to you when you borrow the vehicle.
Alternatives to Insuring a Car You Don’t Own
If you are unable to locate a carrier who will allow you to purchase insurance for another person's vehicle, you may have another option.
Depending on where you live, you may be able to co-title the vehicle. In California, for example, a vehicle can have up to two co-owners.
In addition, up to two people can co-title a car in New York. However, you can only insure the vehicle under both names. Furthermore, all co-titled vehicles must be registered in New York and carry the bare minimum of New York State liability coverage.
How Much Does Car Insurance Cost?
According to a AAA study, a new car will cost an average of $1,202 per year to insure in 2020. However, insurance premiums are subjective and are based on individual factors such as your age, types and levels of coverage, credit history (in most states), driving history, vehicle make and model, and marital status.
Who Has the Cheapest Car Insurance?
Car insurance rates are determined by your personal rating factors and vary greatly by state. When shopping for auto insurance, get quotes from several companies to find the best deal. In addition, use trusted sources such as J.D. Power to find providers who rank highly in your area.
How Much Car Insurance Do I Need?
Except for New Hampshire and Virginia, all states require certain minimum levels of auto insurance (though in Virginia, you must pay a $500 uninsured motor vehicle fee if you do not carry insurance). Aside from bodily injury and property damage liability, some states also require you to carry medical payments, personal injury protection (PIP), and uninsured and underinsured motorist insurance.
What Does Car Insurance Cover?
Common auto insurance coverages include bodily injury and property damage liability, which help pay for another driver's medical bills and property damage when you are at fault in an accident. Collision coverage pays for car repairs after a covered loss. Non-collision losses, such as a broken window, storm damage, theft, and vandalism, are covered by comprehensive coverage.
Each state has its own set of minimum liability coverage requirements. If you lease or finance a vehicle, you must also meet the collision and comprehensive coverage requirements of the lender or leasing company.