Can You Insure Someone Else’s Car? Essential Car Insurance Tips

No, you can’t usually insure someone else’s car,  even though you probably want to be the Santa Claus of auto insurance, buying coverage for everyone who’s on your nice list. 

However, there are some good reasons why you might want to look into the possibility of obtaining coverage for a vehicle you don’t legally own. 

Learn more about the issue and see how you can stay financially protected while behind the wheel (even if that wheel isn’t yours). 

The Basics of Car Ownership and Insurance

The law in the Evergreen State, as well as in almost every U.S. state, is that you must have at least a minimal level of auto insurance to drive. The way insurance happens is simple, even if it typically sounds like the most confusing subject on the planet: The owner of the vehicle must have the coverage. 

There’s a concept called “insurable interest.” It means that you can only purchase a policy for a vehicle if you have a financial interest in it. After all, if you don’t own the car, you wouldn’t be hurt financially if it was ever damaged – unless of course your former friends try to come after you. Therefore, you “shouldn’t” be compensated by an insurance settlement. 

Insurers feel that if you don’t have an insurable interest in a vehicle, you have no incentive to keep it in good condition — or to drive safely and avoid wrecks… how rude, right?! So, if you’re trying to pay to insure a vehicle you don’t own, the companies tend to suspect you might have some form of fraud in mind. And now you know why many auto insurance companies won’t sell you a policy if you don’t have a financial stake in the matter. 

The Legal Landscape of Car Insurance Companies

There are at least a couple of non-fraudulent situations in which a person might want to get insurance for a car they don’t own (kudos in advance for being a non-fraudulent team player). The first circumstance is if you bought a car for your teen driver and put the title and registration in their name. 

In that situation, the licensed driver and owner of the vehicle (your teen) is who the insurers expect to do business with, and you may have to just give your child the money so he or she can make the payment in his or her name. Yes, this is one situation where your kids have a legitimate need for funds… the other being candy, of course. 

Another situation might be if you frequently borrow a non-relative’s car, such as a boyfriend, girlfriend, or roommate. You drive it so much that you feel the risk of being in an accident while behind the wheel is increased, and you’d like to be financially protected. 

In both of those cases, there are solutions that don’t involve insuring a car that’s not in your name. 

Practical Solutions for Insuring Someone Else’s Car

It’s generous of you to buy your teenage driver their first car. While putting their name on the car title emphasizes their total ownership, it might not be doing you any favors when it comes to paying for the auto coverage. 

A better solution might be to put both of your names on the car title, signifying joint ownership. With this approach, you’ll have no trouble paying for your child’s car insurance policy. However, this can be difficult if you’re making payments on the vehicle, so try to make the co-ownership decision before you and your teen sign the paperwork to take out a car loan. You can do it! 

As for the situation where you frequently borrow the car of a friend or roommate, you can get non-owner car insurance that’s liability-only. It won’t pay for the damage to the vehicle if you’re involved in an at-fault accident, but it will help pay for any property damage or medical bills of the other parties involved. 

It’s also easy for the car owner to add your name to the policy and, in this way, to assure that you’ll receive the same benefits as they would, if necessary. 

When it Makes Sense to Get Non-Owner Car Insurance

Non-owner car insurance is a minimal level of coverage for those who don’t own a particular automobile but frequently drive it. Most auto insurance policies allow others to occasionally borrow the insured vehicle, but you need this special mode of coverage if a non-owner uses the car on a regular or frequent basis. 

This form of coverage does not include comprehensive or collision benefits for repairing or replacing the vehicle since the holder of the non-owner policy doesn’t own the vehicle. It’s assumed that the owner of the car will have this more extensive form of coverage. 

Non-owner car insurance is liability protection only. This means that it offers financial benefits to the third parties involved if you have an accident for which you’re at fault. This coverage will help pay for the damage to their vehicles, their medical bills, and damage to the personal property of others — but won’t pay for your own medical bills or car damage. 

Since there’s no actual car to insure through a non-owner policy, the coverage is quite affordable. 

Frequently Asked Questions

Can Someone Else Insure My Car?

Probably not. Auto insurance companies typically only offer coverage to a vehicle’s owner. This is the person whose name is on the car title and registration. 

Can I Put My Car Under Someone Else’s Insurance Plan?

If you live with a roommate or significant other, you can add your vehicle to that other person’s auto coverage policy rather easily (or add them to yours). Just contact your auto insurance agent… hint hint! 

Can I Insure a Car That’s Not in My Name?

This question might come up as you consider whether you can insure a family member’s car. 

This is generally not allowed by most insurers if your name isn’t on the title and registration. As far as the insurer is concerned, you don’t have an interest in insurability if you’re not an owner. 

But you can get around this by adding your name to the car’s title as its co-owner. Ask your insurance agent how to do this or take the matter to your local Department of Motor Vehicles office. 

Get Started with Affordable Non-Owner Car Insurance in Washington Today

At Vern Fonk Insurance, we understand you might sometimes need auto coverage even when you don’t own a car. Come see us – rain or shine… or just rain – about affordable non-owner car insurance. Think of us as your sun coming up in insurance land. 

Simply call us at (800) 455-8276 or get a quick quote online. You can also find a Washington office and agent near you.