Can Someone Else Insure My Car?

Key Points:

• Adding someone else’s name to the registration (a co-title) is one way for someone else to insure your car. 
• Having someone else added to your existing policy is also effective.
• Many insurers offer non-owners policies that enable coverage for vehicles a person doesn’t own.

If you’re a new vehicle owner, you may be wondering: Can someone else insure my car?

Auto insurance companies have strict rules when it comes to starting a policy and verifying information provided by the policyholder. This is mostly to prevent insurance fraud and make sure the driver has insurable interest in the vehicle. So most of the time, you won’t be able to insure a car you don’t own. However, there are special circumstances where the auto insurance provider may work with you.

We’ve reviewed the top car insurance companies in the nation, many of which will walk you through car insurance and vehicle ownership. Read on to learn how you can legally protect yourself when you’re driving a car you don’t own. Then, use our tool above to start comparing car insurance quotes.

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Can You Insure A Car You Don’t Own?

While the person who owns the car is usually the one who insures it, most states will allow someone other than the owner to pay for a car policy. However, many driver’s insurance providers will only insure a car if the policyholder and car owner are the same.

There are a few exceptions in which you can insure a vehicle even if you aren’t the owner. However, it will be difficult to become the primary policyholder.

To legally protect yourself when you’re driving a friend’s car, you can:

1. Transfer the registration
2. Add yourself to the owner’s existing policy
3. Add the owner to your policy as an additional interest
4. Buy a non-owner car insurance policy

Some of these steps will be challenging if you don’t live in the same residence as the vehicle’s owner. It all depends on the auto insurance company. Check with your provider to understand its rules. Many companies will be able to work with you if you establish necessity, if, for instance, this car is your only means of transportation.

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How To Insure A Vehicle You Don’t Own

There are special options to explore when considering insurance for a car someone else drives, or for a car not in your name.

When insuring a car someone else financed for you, the auto insurance company generally prefers for the policy to be in the owner’s name. Depending on your situation, there are ways to have coverage on a vehicle you don’t own.

1. Transfer Your Registration

Most of the time, your best bet is to have the owner transfer registration to you or see if you can be added to the vehicle’s registration. Getting a co-title will add your name to the existing title, allowing you to share ownership of the vehicle.

This is easier to complete when the vehicle is already paid off. It’s a good idea to consider, as this will prove your insurable interest in the vehicle. Once your name is on the vehicle’s title, you should be able to insure the vehicle even if you don’t live in the same home as the owner.

Research your state’s policies on “gifting” a vehicle, so the title can be completely transferred to you.

2. Add Yourself As A Driver To An Owner’s Existing Policy

One of the best options you have is to ask the original owner of the vehicle to add you as a driver to their current auto policy. This is an especially great option for families. When a teenager starts driving and will be using their parents’ or another family member’s car, they should be added to the family policy. This solution works when each motorist is living in the same household.

The exception to this rule is when college students live away from the family household in campus housing.

Adding a driver to an existing policy can even work if the owner of the vehicle is unable to drive the car for any reason and you drive the car for them. In this case, you would be the primary driver of the vehicle, even if you don’t own the car. This process still works best when you live in the same household and you are family members.

In any case, explain your situation to the car insurance company, and its agents should be able to help you with a feasible and legal solution.

3. Add The Owner To Your Policy As An Additional Interest

If you’re wondering whether you can insure someone else’s car, you may be able to add the owner of the car as an additional interest.

An additional interest doesn’t receive coverage, but keeps coverage in place to protect the vehicle. This is used when a party may want the car to be insured but doesn’t have ownership, so they can’t be listed as an additional interest on the main insurance policy.

Adding an additional interest doesn’t increase your car insurance premium. It simply states that someone else has an insurable interest in the car. It means the owner still has a financial stake in the vehicle, even if they aren’t the primary driver.

4. Buy A Non-Owners Car Insurance Policy

Starting a non-owners insurance policy is a good option for driving a car that doesn’t belong to you. Drivers can use this policy when borrowing a car that belongs to a friend or family member or when driving a rental car.

Most of the time, this policy will only give you liability insurance, because it is meant to cover you when you borrow the car and drive it infrequently.

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Can Someone Else Insure My Car?

Many drivers may want to have someone else insure their car to help them save money. This may be the case for high-risk drivers (drivers with DUIs, at-fault accidents, or tickets on their record) who have been quoted high insurance rates. However, you should avoid this at all costs, because that is illegal and counts as insurance fraud.

The best thing to do is to insure your own car and maintain a clean driving record. Over the years, you can qualify for lower rates. You can also check with insurance providers to see if you qualify for discounts to save money.

Can You Register a Car in Someone Else’s Name?

This depends on the state. Many locations require the registered owner of the vehicle to be the one to start an auto policy. Check with your local Department of Motor Vehicles (DMV) to learn the specific requirements for registering a car in someone else’s name.

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Do You Need Insurance To Drive Somebody Else’s Car?

No–most of the time, the insurance follows the car. So if you get into an accident when you’re driving a friend or family member’s car, their existing auto insurance policy will cover the losses, as long as the owner gave you permissive use.

If you cause excessive property damage that their insurance policy can’t cover, you may be held financially responsible. That’s where a non-owners policy can come in handy. This type of insurance coverage can protect you when you’re a pedestrian, and when you’re driving someone else’s vehicle or a rental car.

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What Is Insurable Interest And Do You Need It?

For you to insure a car, insurance companies look for “insurable interest.” This is a reasonable concern for a person to protect any property or vehicle with an insurance policy. In other words, you’ll be financially impacted if the car is damaged. When you own a vehicle, the interest is clear and obvious.

However, if you don’t own the vehicle, auto insurance companies may not trust that you’ll take the proper steps to keep the car safe and undamaged, since it’s not yours to primarily care about.

Trying to insure a car that is not yours may also raise a red flag for insurance fraud. If anyone could insure any car, they could receive benefits when the vehicle becomes damaged, instead of the person who actually needs the coverage.

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Our Recommendations For Car Insurance

It’s always a good idea to get car insurance quotes from multiple providers. That way, you can compare quotes, as well as what they offer in terms of customer service and more. Check out two of our top providers, and use our quote tool below to get free, personalized quotes.

State Farm Insurance: Best Overall Provider

State Farm is the largest auto insurance carrier in the nation. It’s known for its customer service and local agents who help customers manage their policies and answer questions about coverage. State Farm offers many ways to save money on your insurance costs, like discounts for driving safely, getting good grades, bundling home and auto policies, and going accident-free. It has all the standard types of coverage, including: 

• Liability coverage (bodily injury and property damage)
• Collision coverage
• Comprehensive coverage
• Personal Injury Protection (PIP)
• Medical payments (MedPay)
• Uninsured/underinsured motorist coverage

It also offers add-ons like rideshare driver coverage.

State Farm requires proof of ownership to insure a vehicle, so you can’t insure a car you don’t own. However, it provides a personal mobility policy, which covers you when you’re a pedestrian, passenger, or driver of a vehicle you don’t own. It even covers you when you’re riding a bike.

Geico Insurance: Best For Basic Coverage

Geico is primarily known for its affordable rates. The insurer offers many discounts, including those for senior citizens, members of the military, good students, and more. It has a variety of extra coverage options like roadside assistance, rental car reimbursement, and mechanical breakdown insurance. While you may not be able to insure a car you don’t own with Geico, you can purchase a non-owners insurance policy.

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Can Someone Else Insure Your Car?: FAQ

Here are some frequently asked questions about whether someone else can insure your car:

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How We Rate Car Insurance Providers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

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