Do you have to own the car to get insurance?

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It’s not a typical situation. However, there are some reasons why you may wish to insure an automobile you don’t genuinely own — perhaps it belongs to a friend. However, you’re the sole one driving it. Generally, whoever is that the titled owner of an automobile must be the one to insure it. Automobile insurance firms wish to form confident the first customer has what’s referred to as interest within the automobile they’re insuring.

Insurable interest means that you’ve got a reason to insure a vehicle. If you’re the car’s owner, the rationale is self-evident: The automobile is your investment. Thus you’ve got a stake to keep it from being broken or destroyed.

But it’s more durable to prove your interest if you don’t truly own a vehicle. Once you’re attempting to insure a vehicle you don’t own, automobile insurance firms are cautious of fraud and be way less doubtless to permit you to require a policy. But, whereas gap a policy on an automobile that you don’t own is rare, that doesn’t mean you don’t have choices.

Can I insure an automobile I don’t own?

As mentioned, it’s usually not possible to insure an automobile that you don’t own due to insurance firms wishing you to prove you’ve got interested in the automobile. If you can’t prove you’ve got a money stake within the vehicle, it’s unlikely that you can realize AN automotive vehicle insurance firm willing to hide you.

How to prove interested

To prove your interest, once you apply for automobile insurance, you should have your car’s registration or your car’s title, conjointly referred to as a notice, that is a political candidate document that says the UN agency owns a vehicle.

Other coverage choices for an automobile that’s not in your name

Barring exceptional cases, it’ll not be attainable for you to ensure an automobile you don’t own. However, you will have several different choices.

1. Co-title an automobile

Co-titling a vehicle means that you’re adding an extra owner to an automobile. Every state’s Department of cars (or equivalent organization) has specific necessities for doing this; however, to feature AN owner to an automobile, you’ll doubtless ought to conjointly apply for a brand new title.

This typically involves filling out a type with the names and knowledge of each driver’s UN agency are listed on the title, paying a fee, and attending to the DMV personally to sign the new title. If the automobile in question was purchased with a loan that hasn’t been paid off, then you’ll advise the lienholder and see if it’s attainable to feature an extra owner to the title.

But once you’re adding to the title as a co-owner of an automobile, you’re liberal to get AN policy on its vehicle. As AN owner, you’ll be the first customer. however, the other owner should be listed on the automobile insurance policy.

2. Adding a named insured to AN automotive vehicle policy

If you reside with somebody and often drive their vehicle, say a friend or friend, AN insurance firm might need you added as a named insured on their automotive vehicle policy, or contrariwise. Typically, each driver in a very house ought to be added as named insured on a policy. You will be able to add a brand new named insured to your policy online or over the phone.

Non-owner insurance

While you will not be able to ensure an automobile you don’t own, if you’d wish to shield yourself as a driver, you’ll explore one thing referred to as non-owner automobile insurance. Ideal for drivers, UN agencies often rent or borrow cars; non-owner insurance could be a reasonably pared-down automobile insurance policy.

Policygenius home and automotive vehicle professional Fabio Faschi suggest that anyone was attempting to work out how to ensure an automobile they do not own ought to get non-owner insurance instead. “Get a non-owner’s policy, as a result of you don’t own the automobile,” Faschi aforesaid. “We’d wish to hide you for liability, however the vehicle itself has got to be insured by the owner.”

Non-owner insurance typically includes liability coverage, the backbone of most insurance policies. You’ll generally add personal injury protection, which covers your medical expenses if you cause AN accident, or uninsured/underinsured driver coverage, which covers you if you’re in AN accident caused by a driver while not insurance or whose insurance won’t cowl the full extent of the harm.

But non-owner insurance doesn’t embody the sort of coverage that’s designed to shield your vehicle, like collision and comprehensive coverage, as a result of there’s no vehicle to shield. Still, if you discover yourself often driving an automobile that doesn’t belong to you, obtaining non-owner insurance could also be an additional realistic choice than attempting to urge an automobile insurance policy for an automobile that’s not in your name.

When you get insurance for an automobile that you own, there’s AN assumption you’ve got a stake within the well-being of the automobile. Most automobile homeowners wouldn’t wish to crash their automobile thanks to the repair prices and the risk of loss on AN investment.

When you aren’t the owner of the automobile, that assumption can not be mechanically created. After all, if you crash an automobile you didn’t obtain, you don’t stand to lose any cash.

Before you arrange to prove your interest tho’, you ought to understand there are some things wherever this is often not possible.

State laws might forestall you from insuring an automobile you do not own

In certain states, registration and automobile insurance go hand in hand. States like the big apple need you to possess insurance to register a vehicle within the state. If the automobile you’re purported to inherit is registered in somebody else’s name, which means there ought to already be AN automotive vehicle policy on its automobile — within the owner’s name.