Most states require you to have car insurance for any vehicle you own. But what if you’re driving a car registered to someone else? You usually can’t get insurance for a car not in your name, but you can still be covered.
The car’s owner is responsible for insuring it, whether you’re driving a friend’s or family member’s car or using a gifted vehicle. Special policies called non-owner car insurance might also be useful for you.
If you drive someone else’s car often (like a family member’s car), you might be able to be added to the owner’s insurance policy. If you borrow a car less often (like a friend’s car), you can explore “non-owner car insurance.
” This covers you for liability if you cause an accident while driving someone else’s car. It’s always best to check with the car’s owner and your insurance agent to see what options are available for your situation.
Can You Insure a Car Not in Your Name?
In most cases, car insurance can only be obtained by the person listed as the vehicle registration owner. This is because insurance companies want to ensure the person getting coverage has a financial stake in the car (called an “insurable interest”). Car insurance typically covers vehicles registered to the driver. If you drive someone else’s car, here’s how to make sure you’re insured:
Consider Non-Owner Car Insurance
You might want to consider non-owner car insurance if you frequently drive cars that are not yours. When you occasionally drive someone else’s car with their permission, the owner’s insurance usually covers you in an accident up to the policy limits.
However, if the costs of the accident exceed those limits, you would be responsible for the extra expenses. Additionally, if the insurer believes you drive the car too often and should have been added to the policy, they might refuse to cover the accident. This is why non-owner insurance is a good option if you regularly drive someone else’s vehicle.
Non-owner car insurance provides liability coverage for drivers who don’t own a car. This type of policy covers damages you cause to others and their property in an accident where you are at fault if the costs exceed the car owner’s liability limits. It can also protect you financially if you are sued because of a crash.
These policies typically include only the minimum required coverage in your state, though you can often choose higher limits.
Become a co-owner
If you have a legitimate reason to drive the car frequently, you can be added to the title as a co-owner. This would allow you to get insurance together with the main owner.
Becoming a co-owner of an auto insurance policy in the USA involves adding your name to both the car’s title and the insurance policy. First, you need to update the vehicle’s title to include you as a co-owner. This typically requires completing a title transfer form with your state’s Department of Motor Vehicles (DMV), which must be signed by both the current owner and the new co-owner.
Once the title is updated, contact the car insurance company to add your name as a co-owner on the policy. This process often involves providing the updated title and possibly completing additional forms. Adding a co-owner might change the insurance premium, as the insurer will consider both owners’ driving records, credit scores, and other factors to adjust the premium.
Share a policy
If you live with the owner, you might be able to add the car to your existing insurance policy or vice versa.
Case Study of How you can be Insured While Driving a Car that is not your Own
Most states require you to have car insurance for any vehicle you own. But what if you’re driving a car registered to someone else? You usually can’t get insurance for a car not in your name, but you can still be covered.
| Common case study | How to be insured while driving a car that is not your own |
| Drive a parent’s car while living at home
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You should be listed as a driver on your parent’s policy.
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| Regularly Use a Roommate’s Car
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You should be included as a driver on your roommate’s insurance policy.
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| Occasionally Borrow a Friend’s or Relative’s Car | Standard auto insurance typically covers drivers who occasionally use a car with the owner’s permission. The owner’s insurance will likely cover you. |
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Drive a Parent’s Car While Away at School |
Your parent should add you to their insurance policy and notify the insurance company about your school location.
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| Drive a Parent’s Car After Moving Out
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You’ll need to get your own insurance policy. Insuring a car at one address while keeping it at another is considered fraud. Car insurance rates are partly based on where the car is kept. Additionally, insurance companies won’t let you stay on someone else’s policy if you don’t live with them. Your parent can either add you to the car title or transfer the car to you. Then, you can register the car and get insurance using your own address.
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Conclusion
While you may not be able to insure a car that is not in your name directly, alternatives are available to ensure coverage while driving such a vehicle. Options such as being added as a driver on the owner’s policy or obtaining a non-owner car insurance policy can provide the necessary protection. It’s essential to explore these options and choose the one that best fits your circumstances and ensures legal compliance while driving a car not registered in your name.
Do I Need Car Insurance if I Do Not Own a Car?
Legally, you likely do not need to buy auto insurance if you do not own a car. However, if you frequently rent cars or drive someone else’s car, it may be wise to purchase a non-owner policy.
What is the Best Car Insurance Company?
There isn’t a single car insurance company that is best for every driver. With many providers available, the best one for you depends on your individual needs and priorities. Factors such as coverage options, customer service, price, and discounts will influence which company is the right fit for you.
What is Non-Owner Car Insurance?
Non-owner car insurance is a type of insurance policy designed for drivers who don’t own a car but are licensed to drive. It can be beneficial for those who regularly borrow or rent cars.
This type of policy provides coverage for the person listed on the policy and usually includes liability coverage. Depending on the state and insurance company, non-owner policies may also include additional coverage options such as medical payments, uninsured/underinsured motorist coverage, or personal injury protection (PIP)
