On many occasions we have a relative or friend, whom we want to help, wanting to ensure their car under our name or for some other reason. But in most cases, it’s unlikely you’ll be able to ensure a car that isn’t in your name. However, you can co-title a vehicle or add someone as a named insured to your auto policy.
En general, quien sea el propietario titular de un automóvil debe ser quien lo asegure. Las compañías de seguros de automóviles quieren asegurarse de que el titular principal de la póliza tenga lo que se denomina interés asegurable en el automóvil que están asegurando.
El interés asegurable esencialmente significa que tienes una razón para asegurar un vehículo. Si eres el propietario del automóvil, la razón es evidente: el automóvil es tu inversión, por lo que tienes interés en evitar que se dañe o destruya.
But it’s harder to show your vested interest if you don’t actually own a vehicle. When you try to insure a vehicle you don’t own, insurance companies will be wary of fraud and much less likely to let you take out a policy.
But while it’s rare to open a policy on a car you don’t own, that doesn’t mean you’re out of options.
Can I insure a car that I do not own?
As we mentioned earlier, it’s often impossible to insure a car you don’t own because insurance companies want you to prove that you have an insurable interest in the vehicle. If you can’t prove that you have a financial stake in the car, it’s unlikely you’ll be able to find an auto insurance company willing to cover it.
How to show trustworthy interest
To show your credible interest when you apply for insurance, you may need to present a car registration or title, which is an official document that says who owns a vehicle. But if you don’t own a car, it’s harder to prove to an insurance provider that you have a legitimate reason to insure it.
Other coverage options for a car that is not in your name
Except in exceptional cases, you will not be able to ensure a car that is not your property. However, you may have some alternative options.
1. Co-title to a car
Co-ownership of a vehicle means that you are adding an additional owner to a car. Each state’s Department of Motor Vehicles (DMV) has specific requirements to do this, but to add an owner to a car, you’ll likely need to jointly apply for a new title.
2. Add a named insured on an auto policy
If you live with someone and frequently drive their vehicle, say a roommate or family member, an insurance company may require you to be added as a named insured on their auto policy, or vice versa. Generally, all drivers in a household must be added as named insureds on a policy.
3. Non-owner insurance
While you may not be able to insure a car you don’t own, if you want to protect yourself as a driver, you can look into something called non-owner car insurance. Ideal for drivers who frequently rent or borrow cars, non-owners insurance is a kind of reduced car insurance policy. Typically, it only includes liability coverage.
If you are in a situation where you are driving a vehicle that is not in your name, either because someone else used your credit to finance the vehicle for you or for any other reason.