Can you purchase auto insurance if you are not the registered owner?

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Typically, you purchase insurance on a car that has a title in your name or is registered to you. However, you can insure a car that is not registered in your name if you meet a few key requirements. (iStock)

If a police officer stops you for running a red light, the first thing you’ll be asked to show is your license, registration, and proof of insurance. But what if the car is not registered with you and therefore you cannot show proof of insurance?

If you’re a driver, we don’t have to tell you how important it is to have comprehensive auto insurance. If you have concerns about insurance coverage and take the road often, be sure to visit the Credible multi-lender site to see all of your auto insurance options, whether you are the registered owner or not. .

You can get insurance coverage on a car that is not registered with you. But it’s not that common. The car must be registered in the name of the owner or the person who holds the title, and the name of the owner must also appear on the auto insurance policy. Or, you can purchase non-homeowners insurance.

Can you insure a car if you don’t own a car?

As a rule, it is possible to insure a car that is not registered in your name. But it really depends on the underwriting guidelines of your insurance company. Having said that, there are ways around this. You can co-title the car and add yourself as an owner, or you can opt for liability insurance that covers you when driving a car that is not your own.

If you have insurance and want to cut costs or want to switch car insurance companies, head to Credible to explore prices and compare quotes all in one place (bonus: you can complete the process entirely. online).

Insurance companies want to be convinced that the same person who owns the car is the primary policyholder. This is called insurable interest.

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What is insurable interest?

The insurable interest protects the primary policyholder against financial loss. It shows your auto insurance company that you have a vested interest in the vehicle and that you will take care of it if it is damaged. It is much more difficult to prove insurable interest if you do not own the vehicle.

In this case, auto insurance companies may expect fraud and be less likely to write a policy for the vehicle that is not registered in your name.

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How to insure a car that is not in your name

There are several ways to insure a car that does not bear your name.

1. Co-title the vehicle: In essence, co-titling is the co-ownership of the vehicle. Both owners are required to sign the original of the application for registration and title in their state of residence.

The same goes for the insurance policy, known as co-owners’ insurance. If you co-trust the vehicle and both drive the car, you must both be on the auto insurance policy. Any other family member who also drives the car must also be listed on the policy.

The only exception to condominium insurance is if the registered owners of a car do not live together and both owners do not drive the car. In this case, you may not have to list both drivers on the auto insurance policy.

If you want more insurance coverage or a better rate, be sure to use a price comparison site like Credible. Credible can help you compare auto insurance rates and companies to make sure you are covered.

2. Insurance for non-owners: If you have non-homeowner insurance and are in an accident, your policy – which acts like a secondary insurance policy – will come into effect when the primary policyowner’s insurance runs out. Companies often purchase a non-owner’s policy for a company car or truck driven by employees.

There are a number of other reasons why you might want to purchase non-owner insurance:

  • If you only use the car occasionally.
  • You are renting a car for an extended period.
  • To get and keep a driver’s license (most states require proof of insurance to apply for a driver’s license).

Credible’s free financial tools will help you save on auto insurance by allowing you to compare rates or other charges. Start finding out what else is there today.

3. Added to the vehicle owner’s policy: Many times the owner of a vehicle will add another person – usually a close friend or family member to their policy. This way everyone on the policy who drives the car is covered. This is also the case if you share the same address as the owner of the vehicle.

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When can’t you insure a car that doesn’t have your name on it?

The reasons why you cannot insure a car that does not have your name on it are somewhat obvious and include:

  1. If you are not legally authorized to drive. You are a minor or for some reason cannot drive in a particular state.
  2. If you do not have the authorization of the owner of the vehicle or of the main policyholder.
  3. You have no insurable interest in the vehicle. Most states and many auto insurers require it.
  4. You have a bad driving record or DUI.
  5. You have had gaps in insurance coverage. You can still get insurance for a car that doesn’t have your name on it, but it won’t be easy.

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