There are special options to explore when considering insurance for a car someone else drives, or for a car not in your name.
When insuring a car someone else financed for you, the auto insurance company generally prefers for the policy to be in the owners name. Depending on your situation, there are ways to have coverage on a vehicle you don’t own.
Most of the time, your best bet is to have the owner transfer registration to you or see if you can be added to the vehicle’s registration. Getting a co-title will add your name to the existing title, allowing you to share ownership of the vehicle.
This is easier to complete when the vehicle is already paid off. It’s a good idea to consider, as this will prove your insurable interest in the vehicle. Once your name is on the vehicle’s title, you should be able to insure the vehicle even if you do not live in the same home as the owner.
Research your state’s policies on “gifting” a vehicle, so the title can be completely transferred to you.
One of the best options you have is to ask the original owner of the vehicle to add you as a driver to their current auto policy. This is a great option for families. When a teenager starts driving and will be using their parents’ or another family member’s car, they should be added to their policy. This solution works when each motorist is living in the same household.
The exception to this rule is when college students live away from the family household in campus housing.
Adding a driver to an existing policy can even work if the owner of the vehicle is unable to drive the car for any reason and you drive the car for them. In this case, you would be the primary driver of the vehicle, even if you don’t own the car. This process still works most easily when you live in the same household and you are family members.
In any case, explain your situation to the car insurance company, and its agents should be able to help you with a feasible and legal solution.
If you are wondering if you can insure someone else’s car, you may be able to add the owner of the car as an additional interest.
Additional interest does not receive coverage but keeps coverage in place to protect the vehicle. This is used when a party may want the car to be insured but does not have ownership. Thus, they can’t be listed as an additional interest on the main insurance policy.
Adding an additional interest does not increase your car insurance premium. It simply states that someone else has an insurable interest in the car. It means the owner still has a financial interest in the vehicle even if they are not the primary driver.
Starting a non-owners insurance policy is a good option for driving a car that does not belong to you. Drivers can use this policy when borrowing a car that belongs to a friend or family member or driving a rental car.
Most of the time, this policy will only give you liability insurance, because it is meant to cover you when you borrow the car and drive it infrequently.