While most states do not require that a policyholder’s name match the name on the vehicle registration, individual insurers may have rules against purchasing a policy where the police officer’s name does not match the registration name.
Even if your insurance company allows you to purchase a policy for a car not in your name, the claim process can be complicated. There is a risk that you may accidentally breach your insurance terms and conditions.
Insurers may also choose to charge a higher fee for calculating this risk. That’s why it’s important to find the best car insurance for you.
What does the law say? Only New York State legally requires that the name on your auto insurance policy match the name on your license plate. If there are two names on the application, you will need both names on the policy. In other states, each insurance company must decide whether to issue a policy for your individual situation.
Keep in mind that most auto insurance companies require that you demonstrate an insurable interest in the vehicle being insured. This means that you have a financial interest in the car and any repairs resulting from an accident are your financial responsibility. This can be difficult to prove for a vehicle you do not own.
Who insures a car that is not in your name?
There are situations in which you may want to have your car insured by someone else.
You ask your child to take out insurance themselves
You may own your own family car, but you want your child to take some financial responsibility for its use. If the car’s title and registration are in your name, but you intend to insure the car in your child’s name, you must ensure that your child does not violate the terms of your insurance coverage. If your child goes abroad, they may be breaching the terms of your policy and your claim may be rejected. Contact your car insurance agent for more information.
Drivers under 25, especially teen drivers, pay some of the highest car insurance rates in the country. Check out our free car insurance guide for drivers under 25 to make sure you get the best deal at the lowest price.
Someone else is the primary driver of your vehicle
It may happen that you have a car registered and registered in your name, but you are not the person driving it. Maybe your partner, your parents or your babysitter uses the car regularly. Remember that your insurance policy covers anyone who uses your car from time to time, even if you give your car to a relative or neighbor. However, most insurance companies require that someone who has regular access to your vehicle be insured under a policy for that vehicle.
In any case, you should discuss the details with your health insurance company. The owner of the vehicle (if you are not) will likely also have to comply with the insurance policy. And remember, your premium may be higher if you provide a car that’s not in your name.
Alternative to insuring a car not in your name
If getting car insurance for a car you don’t own isn’t an option, there are several alternative routes you can take. And even if your insurance company modifies a policy for someone who is not a registered owner, other alternatives may be more convenient and result in a less complicated claims process.
Add your name to registration
In most cases, two or more names are allowed on the registration certificate. This is probably the most convenient alternative to securing a car that is not in your name. You can ask the vehicle owner to put your name on the license plate, or they can transfer the license plate to you entirely.
Mention the owner and driver in the insurance policy
Another option is for the car owner to add the non-owner to their insurance. Keep in mind that in most cases both parties must live at the same address for your insurance company to agree.
