Consider this situation. Your sister is on military deployment overseas, and her car is sitting in your parents’ driveway. You need a way to get around, and she offers use of her car. However, you live in another state, so your parents can’t add you as a driver on their policy that includes the car. So you ask, “Can I insure a car I don’t own?”
Considerations When Looking to Insure a Car You Don’t Own
There are a lot of other situations where you may want to insure a car you don’t own, and generally you can, if state law allows, and you can find a willing insurer. Here are several factors to think about when considering the question, “Can I insure a car that I don’t own?”
You’ll need to register the car in your state, so check with your DMV to find out if you can register a car you don’t own. You may have to have your name added to the title. If the car is paid off, this may involve only a small fee. If it’s not paid off it can be more complicated.
Insurance companies want to know you have a financial stake in the car. An owner has a greater incentive to drive carefully and keep the car out of accidents than someone who doesn’t own the car.
If you don’t have a financial stake in the car, you may need to convince the insurance company you have another reason to keep the car safe, that you rely on it to get around, for instance, or that it’s in your custody and you have control of it.
When you ask an insurer, “Can I insure a car that I don’t own?”, be upfront about why you need insurance and how you’ll be using the car. Never lie to get insurance. Getting caught in a lie is a great way to label yourself as a high risk. Lying to get insurance is also illegal.
You may be able to add the owner to the policy as an insurable interest. Your sister wouldn’t need to be on the policy as a driver, but if you were to total the car, the payout would go to her as owner.
If you are unable to insure the car, you can look at something like getting a non-owner policy. A non-owner policy is limited, doesn’t include comprehensive or collision coverage, and doesn’t cover other drivers besides the policy holder, but can be useful.
How Can I Get Help Insuring a Car I Don’t Own?
If you’re asking, “Can I insure a car I don’t own?” you may also be wondering, “Can I get help insuring a car I don’t own?” Keep in mind that you may be allowed to insure a car you don’t own, but insurers aren’t required to insure it for you, and those willing to might charge more than other companies, so if you get a few refusals keep shopping around. If you don’t have time to get quotes from lots of insurers, or would like help from experienced insurance agents, contact Insurance Center Associates today. For more information on getting car insurance, see “A Beginner’s Guide to Auto Insurance.”