Auto Insurance in Someone Else’s Name
Most people tend to associate auto insurance policies with people owning their vehicles. However, can you insure a car that you don’t own? Today we will talk about car insurance on behalf of someone else. Likewise, we will review your main options when going through this situation.
Is it necessary to have insurance when driving someone else’s car?
While drivers don’t need a license to drive a vehicle, they generally do need insurance, no matter who owns the car.
And there may be times when people look for insurance on a car that won’t be theirs. Whether they are buying it as a gift for a family member or need it for their business, this scenario is quite common.
Unfortunately, car insurance follows the vehicle instead of the driver. The same can be said for life insurance as it is for the driver and not the car.
So what happens when an owner lends their car to someone else?
When this situation occurs, a policy within the policy may cover the driver, which is called “permissive use.” Unfortunately, you will not find this policy in certain insurance coverages. Not only that, but permissive use generally offers only liability coverage and nothing else.
Also, permissive use does not include the business use of a personal automobile. For this reason, it is always good to research what insurance policies the car owner has.
Can you insure a car that is not yours?
In short, yes you can. The easiest way is to add the driver of the vehicle to your insurance as additional interest. However, you can also purchase an auto insurance policy for non-owner.
If you do not choose any of these options, it will probably be difficult for you to get insurance for a vehicle that is not yours.
In general, car insurance companies tend to ask for people who own the vehicle. That way, they can verify if the owner of the vehicle has an insurable interest in it.
When you don’t own a car, it’s hard to prove that you have a financial interest in it. And, without much proof, many companies are unwilling to cover you as a result. Put another way, they don’t know how much you are responsible for taking care of the car.
Ways to Ensure a Vehicle That Is Not Yours
As we said earlier, there are two main ways you can insure a car that isn’t yours:
- Get Non-Homeowners Insurance
- Sharing car insurance
We will go over each of these options. That way, you can know which is the best option for you.
What Is Auto Insurance in Someone Else’s Name?
Auto insurance in someone else’s name, also known as non-owner auto insurance, was created for people who don’t own a car but still need to drive it. It is usually for people who occasionally rent or borrow a vehicle.
For example, if you are on vacation and you are thinking of renting, this policy is what you need.
Non-owners auto insurance coverage usually includes what is required in your state. In addition, this policy does not have any collision or comprehensive insurance. For this reason, if you wish, you can opt for full coverage instead of civil liability insurance.
Another thing to know about this insurance policy is that it does not come with a deductible. In other words, you won’t have to pay additional fees before coverage begins.
Believe it or not, there are many scenarios where you might need this type of policy. Some of them include:
- You need an SR-22 or FR-44 form
- Frequent use of car-sharing services
- Car rental and loan
- Require obtaining or reinstating a license
When you get this insurance, be sure to check out the best providers in your area. At Pagamenos Insurance, we offer a wide variety of auto insurance policies that are best suited to the needs of our customers.
How Can You Share Auto Insurance?
Unfortunately, a non-owners auto policy may not be the best option for you in some cases. One of the most common is when you borrow a car from a person who lives in the same household as you.
If this is your situation, you should consider sharing car insurance with the car owner.
Typically, most auto insurance companies require the driver to list all household members with a license on their policy. These people are what we know as additional insured.
Sharing an insurance policy is quite common for people who drive their parents’ car.
Also, young drivers tend to avoid high auto insurance quotes when they share a policy. After all, younger people tend to have lower credit scores which results in higher rates.
Sharing insurance policies can also go the other way. In other words, you can add the car owner to your insurance. And, believe it or not, this action will not change the cost of your insurance. You will simply add the person as an additional insured who has an interest in the vehicle.
Lastly, you can also share a car insurance policy by co-titling it or sharing ownership. However, you’ll want to check your state’s requirements for this process when choosing this option.
Please note that both policyholders must live in the same household when choosing this option. It won’t work for you if any of the people live far away in a city or even a different state.
How can you demonstrate the insurable interest in your vehicle?
Now that you know the best ways to insure cars that you don’t own, you should also be aware of how to demonstrate your insurable interest in owning a car.
As we said before, most companies prefer to insure vehicle owners rather than borrowers. Ownership helps insurers know the interest in the vehicle.
You can demonstrate your interest in the car by submitting the car title.
Now that you know about auto insurance in someone else’s name and everything about insuring other people’s cars, you should get the option that best suits your needs.
Remember that if you have any questions or need a quality auto insurance policy in Texas, you can always count on our team. We offer the best vehicle insurance rates in the entire area.
