Is It Possible to Insure a Car Which You Don’t Own?

To insure a car, it is important that its title bears your name otherwise it will be indeed difficult to convince an auto insurance provider that you have “insurable interest” in the vehicle that is to be insured. Other than “insurable interest”, your state law may also apply that make things further more challenging for you to get a non-owned car insured.

The best way to determine whether you can insure a vehicle that don’t own is to either visit your state’s Department of Motor Vehicles (DMV) website and get detailed information regarding the same or contact a certified and highly experienced local agent.

What Is Insurable Interest Mean?

The owner of a car stands to lose financially his/her vehicle gets totled in an accident. Hence, it is in the interest of the car owner to get his/her vehicle insured. Insurance coverage will compensate for any financial damages which might result as a result of an accident involving the insured car. But to claim the damages or losses, car registration must bear the owner’s name. This is what is termed in insurance parlance as “insurable interest”.

If you are able to prove that you have some kind of “insurable interest” in a car that you don’t own then you can get it insured. Nevertheless, such a task may be extremely difficult even if might not be impossible.

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How Do You Insure a Car When You Are Not Its Owner?

For insuring a car which you don’t own, you can show insurers that your residential address is the same as the car owner’s, get your name added to the car owner’s auto insurance policy or add car owner’s name to your policy.

Alternatively, you can explore the possibility of being the car’s co-owner or buying a non car owner’s auto insurance policy can be a great option. And if you need to drive a car occasionally by borrowing one from a friend, relative, neighbour or acquaintance then you may qualify for insurance coverage under the clause of “permissive use” even if you are not listed on the car owner’s insurance policy as a listed driver.

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