Can Your Car Insurance Be in Someone Else’s Name?

Our product recommendations are made independently, but we may earn affiliate commissions if you use a link on this page.

Though it’s common knowledge that cars must be insured, buying auto insurance is often confusing and lengthy as it involves many variables. As such, you may be asking yourself, “Can car insurance be in someone else name?”

Generally speaking, a car owner can’t have automobile insurance in someone else’s name. However, there are some exceptions, such as when a disabled driver owns but doesn’t drive a car or when parents buy a car for their adult children.

But even in these cases, it can become more complicated if you don’t share residence with the car’s owner.

Keep reading to find out more.

Can Car Insurance Be in Someone Else Name?

If you’re the car’s primary driver and it’s licensed and referenced in your name, it’s easy. You purchase a standard personal car insurance and add yourself and any other individual with a license in your household as drivers.

However, not everything we encounter in our daily lives is the norm.

Sometimes, purchasing insurance under someone other than the legal owner makes sense. So, if you’re worried and keep asking, “Can car insurance be in someone else name?” Here are a few instances where it’s possible.

1. A Parent Procures a Car for Their Adult Child Who Doesn’t Live With Them

You may have a child that is a college student and still under your financial support. In such a case, you may transfer the title of the car into your child’s name while keeping it registered under yours to continue paying insurance premiums.

Insuring a car as an adult means using one’s name and residence as the primary insured. To ensure compliance with statutory legislation, you must buy the insurance from an insurance company in the same state where the car is registered.

2. You Have a Disability and Own a Car

If you’re disabled and don’t have a driver’s license, either because you don’t want one or can’t get it, you might not be able to buy coverage using your name.

But if you have a caregiver and allow them to use your car, you can solve the problem by asking them to buy a non-owner insurance policy.

You might be able to track down an insurer that is willing to do so if you can demonstrate that you do not drive by choice and provide the name of a primary driver.

Before applying for such coverage, we recommend you review the insurer’s underwriting criteria.

3. You’re Undergoing a Divorce

Car insurance after a divorce can be complex because of questions of responsibility. If only one of the partners appears on the vehicle’s registration, then the vehicle is not considered joint property in some states.

If this is the case, before finalizing the divorce, you will need to determine who will be responsible for covering the insurance premiums and how to divide the property.

You may be required to maintain auto insurance while the registration will be in your ex’s name. Failure to maintain active auto insurance constitutes a violation of a court order.

Problems That May Arise if You Opt To Insure a Vehicle in Someone Else’s Name

Problems may occur later if you insure your car under someone else’s name. Research is essential to avoid getting fined or finding yourself in other serious trouble.

Some things to keep in mind include the following

1. Insurers Might Reject Your Request

Not all insurance companies will undoubtedly approve coverage for someone who doesn’t own the vehicle they plan to use most frequently.

For example, an insurance company has no interest in providing insurance in a region it has not yet established a rating for, which is the case if a student moves out of state and takes their car with them.

That’s why some insurers offer “student out-of-state” designations, allowing the car to be insured under the parent’s policy even if the student is studying in another state. Tell the insurer the truth to avoid having your policy canceled due to false information.

2. Compensation Requests May Not Work

You may run into trouble when filing a claim with your insurer if you don’t tell them that you aren’t the registered owner of the car you’re insuring. The insurer may reject your compensation request because you have breached the agreement.

Additionally, compensation payments are sent to the named insured or the named lender. Such a situation may prove problematic if the car owner needs cash to pay for repair bills.

3. DMV Might Fine You

In some jurisdictions, it’s a legal requirement to have the same name on the registration and the insurance policy.

The requirement is prevalent in jurisdictions where you can easily verify insurance documents digitally. To legally operate a motor vehicle, you’ll need to carry at least the bare minimum of insurance, as mandated by most states.

What Will Insurers’ Look For When Insuring Someone Else’s Car?

Insurers will typically inquire about your insurable interest. When you are a car owner, your insurable interest is obvious. Insurers will want to understand who you are and your stake in the car before they agree to cover it for you if you don’t own it.

If you’re not the car owner you want to insure, insurance providers will view you as a greater risk because you might not take all reasonable precautions to prevent damage. Insurance carriers are wary of insuring a car that isn’t legally yours because doing so is often indicative of insurance fraud.

Having some stake in a car is usually a prerequisite for being able to insure it. It eliminates the possibility of someone else insuring your car and collecting the payout in case of an accident, or your coverage is written off.

Driving a Vehicle That Is Not Registered to You

Usually, car insurance policies are tied to the vehicle rather than the driver. When somebody other than the car’s owner is driving it and gets into an accident, the car owner’s insurance usually pays for the damage.

Nevertheless, it’s dependent on the requirement that the driver is duly licensed and authorized to operate the car. Remember that the policyholder is always responsible for the vehicle and its use.

If you let anyone use your car and get into an accident for which they are at blame, your insurance rates will likely go up the next time you renew your policy.

Helpful Hints on Buying Insurance for a Car You Don’t Own

Insuring a car that is not yours can be challenging. Nevertheless, there are some situations in which insurers will offer such coverage. Some suggestions that could help you get insurance for a car you don’t own are as follows:

  • Co-titling. It is much simpler to co-title a paid-off vehicle than one with a loan balance. If possible, include your name on the car’s registration, as it will help show that you have a financial interest in the vehicle.
  • Ensure you have an extensive reading of the respective insurer’s guidelines. Since each insurer is unique, some might offer coverage even if you don’t own or partially own a car, share residence with the owner or have any financial interest in the vehicle. Nevertheless, some insurers will deny coverage for the reasons mentioned above.
  • Prove your need for car insurance. Give your insurer a thorough breakdown of what you need and why. You may be eligible for coverage if you cannot afford a car and need one regularly for work or school. Some insurance companies may provide car insurance if you regularly use the car. It is a common scenario for college students living on campus and driving their parents’ cars.
  • Give insurers truthful information. It will help if you tell your insurance provider everything there is to know about your circumstance. Insurers will be less willing to meet your needs if you give them false information or try to conceal things.

Final Thoughts

Can car insurance be in someone else name? There are several common and valid reasons why an individual might buy car insurance for a car they don’t own. Although it is more straightforward when two people share the same address, there are still ways to make it work when they have different ones.

If you don’t have your car but sometimes borrow one from a friend, the person’s auto insurance policy covers you. Nevertheless, buying a non-owner insurance policy may be prudent if you frequently drive someone else’s vehicle.

Now that you have more information about the potential outcomes of transferring auto insurance coverage to another party, you can make an informed decision.


Reference Legal Explanations

If you use any of the definitions, information, or data presented on Legal Explanations, please copy the link or reference below to properly credit us as the reference source. Thank you!

  • " Can Your Car Insurance Be in Someone Else’s Name?". Legal Explanations. Accessed on June 13, 2024.

  • " Can Your Car Insurance Be in Someone Else’s Name?". Legal Explanations, Accessed 13 June, 2024

  • Can Your Car Insurance Be in Someone Else’s Name?. Legal Explanations. Retrieved from