Insurers may allow non-owners to insure vehicles under the most common scenarios. But insuring another person’s automobile isn’t always easy. It may depend on the insurance company you choose and your state’s insurance laws.
Can I Insure a Car I Don’t Own?
Usually, the person insuring a car has an insurable interest in the property. They make the payments and their name is on the title, so they buy insurance because they could be liable in a car accident. However, the person who owns the car and the person who drives the car isn’t always the same. Scenarios in which buying insurance for a car you don’t own would include:
A college student who takes a parent’s vehicle to college but purchases their own policyAn elderly relative no longer drives and has offered her automobile to you to borrowA high school graduate planning to continue their education who can afford the cost of insurance but can’t afford their own set of wheels
There are numerous reasons why you may need to buy auto insurance for a vehicle you don’t own. But will an insurance company allow you to? It may depend on the state in which you live, whether you are related to the car owner, and whether you and the owner live at the same address.
How to Get a Car Insured When You Don’t Own It
Reasons for insuring another person’s vehicle vary and the conditions in which you can insure someone else’s car can differ among insurance companies. Generally, though, you have the following options:
Ask the Owner to Add You to the Automobile’s Policy
If the car owner is a relative and you share the same address, ask the owner to add you to their auto insurance policy’s driver list. In some cases, a roommate may add you to their policy as a driver, but only if they hold the title to the vehicle. If each person in the household has their own vehicle, they need separate car insurance policies. And if you share each other’s cars, your insurers may allow you to extend coverage to each driver.
Purchase Non-Owner Insurance
If you don’t own a vehicle, but sometimes borrow a car from a friend or relative, non-owner insurance may provide the coverage you need. Non-owner policies often provide barebones coverage, often just bodily injury liability and personal property liability. Some non-owner policies may also offer medical payments, personal injury protection (PIP), uninsured and underinsured motorist, and rental car liability coverages. But non-owner policies don’t include collision and comprehensive coverages. So, if you borrow a car from a friend and are at fault for an accident, your non-owner insurance policy will help pay the medical and property damage costs of the other driver, but they won’t pay to fix your friend’s automobile. If you choose a non-owner policy, it’s important to know the types of coverages the vehicle’s owner carries, and if their collision and comprehensive coverages extend to you when you borrow the automobile.
Alternatives to Insuring a Car You Don’t Own
If you have trouble finding a carrier that will allow you to buy insurance for another person’s car, you may have another option. Depending on which state you live in, you may be able to co-title the automobile. For example, California allows up to two co-owners for a vehicle. New York also allows up to two people to co-title a car. However, you can only insure the automobile in both names. In addition, all co-titled vehicles must be registered in New York and must carry minimum levels of New York State liability coverages. Each state has minimum liability coverage requirements. If you lease or finance a vehicle, you’ll also need to meet the lender’s or leasing company’s collision and comprehensive coverage requirements.
