Can I insure a car that isn’t in my name?

Insuring a car that isn’t in your name can be a complex process, but it’s possible under certain circumstances. Generally, insurance companies require the policyholder to have an insurable interest in the vehicle, meaning you must have a vested financial interest in its protection. This typically applies to situations where you regularly use the car, such as when it belongs to a family member or is leased.

To get insurance, you may need to be listed as an additional driver on the owner’s policy or obtain a non-owner car insurance policy. Non-owner car insurance provides liability coverage when driving a vehicle you don’t own, which can be useful if you frequently drive cars belonging to others. 

Some insurers might allow you to insure the car if you have a strong reason for doing so, like having a legal responsibility for the vehicle. Discussing your situation with an insurance agent who can guide you through the options and ensure you comply with all requirements is important.

Can you insure a car you don’t own?

“Insuring a car that’s not in your name is possible, but it requires careful handling and precise information disclosure,” says Ryan McEachron, CEO of ISU Insurance Services ARMAC Agency. “From my experience, it’s crucial to ensure you have some form of insurable interest, like having regular use or a vested interest in the vehicle.”

To insure a car you don’t own, you might consider being added as an additional driver on the owner’s insurance policy, or you could obtain a non-owner car insurance policy. 

Non-owner car insurance provides liability coverage when driving a vehicle you don’t own, which can be useful if you frequently drive cars belonging to others. It’s essential to communicate with insurance providers to understand their specific requirements and ensure you have the appropriate coverage for your situation.

When you can insure a car that you don’t own 

It is possible to insure a car you don’t own, but typically only under specific circumstances. Here are the situations where insuring a car you don’t own is allowed:

• You drive the vehicle often. This is common when you are the primary driver of a car owned by a family member, partner or a leased vehicle.
• You share a vehicle. If you are sharing a vehicle with a roommate or partner, confirming you have coverage is good, even if you don’t own the vehicle. 
• You lease a vehicle. If you are leasing a vehicle long-term, you’ll need insurance coverage for it, even though you aren’t the official owner. 
• You are renting a vehicle. Insurance companies typically require the policyholder to have an insurable interest in the car, meaning you would suffer a financial loss if the vehicle were damaged or lost. For example, you can purchase coverage when driving a rental vehicle. 

When you can’t insure a car that you don’t own

While it’s sometimes possible to insure a car you don’t own, it’s not allowed in some situations. Here’s when you cannot insure a car that isn’t in your name:

• You rarely drive the vehicle. If you borrow a vehicle from a family member one time, you likely cannot get an insurance company to write you a separate policy. 
• You don’t have an insurable interest. You can’t get coverage if you can’t withstand financial penalties after the vehicle is damaged. 

What are the legal implications of insuring a car that isn’t in your name?

“From a legal standpoint, it’s crucial to accurately disclose your relationship to the car and its owner when applying for insurance,” says Robert Macoviak, president of Oyer, Macoviak and Associates, an insurance agency in Boynton Beach, Florida. “Miscommunication can lead to claim denial or policy cancellation. For drivers frequently using a vehicle they don’t own, exploring options such as being added as a named driver or obtaining a non-owner policy might be beneficial.”

A denied claim could mean you’ll be on the hook for the entire financial fallout of an accident you caused. For example, that could mean you’ll have to pay to repair the other driver’s vehicle and medical bills without the help of an insurance company. Of course, depending on the damages, this could wreak long-term havoc on your finances. 

Insurance options when you don’t own a car

If you don’t own the vehicle, your insurance options aren’t as clear-cut. Explore the different ways to get insurance coverage on a vehicle you don’t own below:

Include the car owner as an additional interest in your policy

When you purchase insurance coverage, you can include the vehicle’s owner as an additional interest on the policy. 

As the vehicle’s owner, having their name on the policy keeps everything up and up. Of course, you’ll need to discuss the insurance arrangements with the vehicle’s owner to confirm they are comfortable with you purchasing a policy that includes their name. 

Generally, this is a good option if the vehicle’s owner doesn’t have a current insurance policy. 

Have yourself added to the car owner’s insurance policy

If the vehicle’s owner already has an insurance policy attached to the vehicle, they can add your name to the insurance policy. Of course, you’ll likely have to ask the owner to add your name to the policy. But this can be a straightforward way to confirm your coverage. 

When the owner adds you to the policy, their rates may increase. Please arrange your financial situation ahead of the change. 

Transfer the car registration or add your name to it

If the vehicle’s owner no longer uses it and wants you to drive it, consider asking to have the car registration transferred into your name. If they aren’t comfortable with that, consider adding your name to the car’s registration. With your name on this document, obtaining insurance coverage is easier. 

For example, let’s say your parents are letting you drive an older vehicle they own. If they no longer need the car and want you to use it, asking them to transfer the car registration to your name gives you more legal standing to purchase insurance coverage without their involvement. 

Obtain a co-title for the vehicle

Many states allow vehicle owners to share the title with another person. If the vehicle’s owner is open to this, obtaining a co-title is often as simple as filing a form at your state’s DMV. 

After your name is added to the title, you’ll have an insurable interest, making buying insurance coverage easier. 

Get non-owner car insurance

If your name remains off the vehicle’s paperwork and you aren’t added to the owner’s car insurance policy, a non-owner car insurance policy is a worthwhile opportunity. This type of policy allows you to purchase liability coverage for yourself as a driver. 

After an accident, a non-owner insurance policy can help you pay for damages and injuries you cause to others. 

What companies insure vehicles you don’t own?

Many major car insurance companies offer non-owner car insurance policies. Here’s a look at some of the companies that provide this type of coverage:

• USAA
• Geico
• State Farm
• Progressive
• Travelers
• Nationwide
• Farmers
• Allstate

What companies provide cheap non-owner car insurance

Car insurance costs vary based on your unique situation. However, some insurance companies consistently tend to offer cheaper rates than others. 

For California drivers, Kemper and AAA tend to offer the cheapest rates. But in Florida, Geico and Travelers tend to offer the cheapest rates. The table below highlights the average rates by company for the five most populous states. 

Look below if you didn’t find your state in the table below. The following table includes the cheapest companies for all states. 

Adding a car that’s not in your name to your insurance policy 

If you need to add a car to your insurance policy that isn’t in your name, you must follow specific steps and meet certain criteria. Some reasons why you might insure a vehicle you don’t own include:

• You have a financial stake or insurable interest in the car.
• You’re related to or live in the same household as the vehicle owner.
• Someone is moving in with you, and you may share the vehicle.

Though most major insurers will not sell you an insurance policy on a car that is not legally yours, some major insurers, like Progressive, say they will.

How to insure a car you don’t own

Insuring a car other than your own can be difficult, but there are a few ways that can help: 

Share the same address with the car owner

If you live at the same address as a car owner, it’s easy to be added to their insurance policy. The vehicle owner needs to contact their insurance company and tell them they would like your name to be included in their auto insurance policy.

Add your name to someone else’s auto insurance

Adding yourself to the title of a car can be difficult and expensive if you don’t own it. However, to get insured, you must show the insurance company that you depend on this vehicle to get supplementary coverage from the insurer.

Add a vehicle owner to your policy

You may consider adding the vehicle owner’s name to your insurance policy. This will ensure that the vehicle is covered in case of accidents or damage.

Can someone else insure my financed car?

Yes, someone else can insure your financed car in certain situations, but there are important considerations to remember. Although they may be able to secure an insurance policy for the vehicle, the bank or lending institution remains the primary lienholder. 

This means that insurance payouts, such as for repairs or a total loss, would go directly to the financing company rather than the policyholder. To avoid complications, it’s essential to ensure that the policyholder’s name is listed appropriately and that the coverage meets the lender’s requirements.

Can someone else register my car in their name?

Although someone else may be able to insure your financed car, the bank or lending institution is the primary lien It all depends on the state. Generally, someone else may be able to register your car in their name, but only if you permit them. You may also add a co-owner to your vehicle registration, showing your name on the title.

Alternatives to insuring a car you don’t own

If you have trouble convincing your insurance company to insure a car you don’t own, there are workarounds to consider:

Buy non-owner car insurance 

Non-owner car insurance is car insurance for drivers who don’t own a car. If you plan on borrowing a car regularly, non-owner car insurance will provide liability coverage for any vehicle you drive. Liability insurance pays for damages you cause to third parties, which may be enough for your needs, but it won’t cover the vehicle against loss or damages if you’re at fault in an accident.

Non-owner car insurance acts secondary to the car owner’s insurance policy. And if you drive someone else’s car regularly, you can ask the owner to add you as a driver to their policy.

Suppose you’re not the vehicle owner but want to make sure you have liability coverage to supplement whatever the car owner has. In that case, non-owner insurance can be an option with affordable insurance rates.

Ask to get added to the car owner’s insurance policy

Instead of trying to buy car insurance for a car you don’t own, it may be easier to get added to the owner’s auto insurance policy instead. This scenario only works if the vehicle owner is your roommate or family member who lives with you. Most car insurance companies are more willing to add a driver to an insurance policy than to insure a car not in your name.

Become a co-owner or owner on the title 

Depending on your state, you may be added as a co-owner on the vehicle’s registration. Once you’re on the title and registration, you’ll get a new title and be able to get an insurance policy on the vehicle.

Alternatively, consider asking the title bearer to transfer the vehicle ownership to you. The titleholder must own the car outright or pay it off in full first. Many states allow the gifting of a vehicle, saving you sales tax. However, it’s best to double-check this method with an accountant. You may save on sales tax but be subject to a federal gift tax on the car’s value.

Rely on permissive use 

If you plan to use the car occasionally, you don’t need an insurance policy if the owner already insures it. Insurance policies give non-owners of vehicles permissive use, which means licensed drivers who have been permitted to use the vehicle occasionally are covered without being named on the auto insurance policy.