In most cases, the person who owns an automobile also purchases and maintains insurance coverage for it. However, this isn't always the case. Adult family members who share a vehicle may, for example, split insurance costs. In the most common instances, insurers may allow non-owners to cover vehicles. However, insuring someone else's car isn't always simple. It depends on the insurance company you choose and the insurance laws in your state.
Important Points to Remember
- To acquire insurance coverage for a car, you usually need to have an insurable interest in it.
- Some insurers may enable you to get insurance for another person's car if the owner is a relative and you both live at the same address.
- Students who drive their parents' cars to college in another state may need to purchase their own insurance.
- If you don't own a car, you can get auto insurance by purchasing non-owner car insurance.
Is it Possible to Insure a Car I Don't Own
The person who insures an automobile usually has an insurable interest in the property. They make the payments and their name is on the title, so they purchase insurance to protect themselves in the event of a car accident. The person who owns the car, however, is not always the same as the person who drives it. Buying insurance on a car you don't own could happen in the following scenarios:- A college student who drives their parent's car to school but buys their own insurance
- You've been offered the use of an older relative's car because she no longer drives.
- A high school graduate who wants to continue their studies but can't afford their own vehicle but can afford insurance
How to Insure a Car When You Don't Own It
The reasons for insuring another person's vehicle vary, as do the criteria under which you can insure another person's vehicle. In general, though, you have the following choices:Request that the owner add you to the vehicle's insurance policy
If the car owner is a relative and you share the same residence, request that you be added to the driver list on their auto insurance policy. A roommate may add you as a driver to their coverage in some instances, but only if they own the vehicle. If each member of the family owns a car, they will need their own auto insurance policy. Your insurer may also let you extend coverage to each driver if you share a car. If you're a college student driving your parents' car, some insurers will let you keep your coverage or add your name to the policy's list of covered drivers if you go to school in the same state. However, if you attend school in another state or if your name is not mentioned in the title, you may need to purchase your own insurance.Non-Owner Insurance is available for purchase
Non-owner insurance may be appropriate if you don't own an automobile but occasionally borrow one from a friend or relative. Non-owner insurance may provide only the most basic coverage, such as bodily injury and personal property liability. Medical expenses, personal injury protection (PIP), uninsured and underinsured motorists, and rental automobile liability coverage may be included in some non-owner plans. Non-owner plans, on the other hand, do not provide collision or comprehensive coverage. So, if you borrow a car from a friend and cause an accident, your non-owner insurance policy will help pay for the other driver's medical and property damage bills, but not for your buddy's car. If you choose a non-owner policy, be sure you understand what sorts of coverage the vehicle's owner has and whether their collision and comprehensive coverages apply to you when you rent the car.Insurance Options for a Car You Don't Own
You could have another choice if you can't find a carrier that will let you buy insurance for someone else's car. You might be allowed to co-title the vehicle depending on where you live. In California, for example, a car can have up to two co-owners. Because the names on a title normally suggest ownership, co-titling might generate complications with survivorship. If "tenants in common" is not included after the names on the California title, the car will pass to the other named person on the title if one of them dies. In New York, a car can be co-titled by up to two people. You can, however, only insure the vehicle under both names. In addition, all co-titled automobiles must be registered in New York and carry the state's minimum liability insurance requirements.What Is the Cost of Car Insurance
According to a AAA study, the average cost of insuring a new automobile in 2020 will be $1,202 per year. However, insurance premiums are based on a variety of factors, including your age, kind and level of coverage, credit history (in most states), driving history, car make and model, and marital status.Who has the most affordable car insurance
Car insurance premiums vary greatly by state and are dependent on your specific rating variables. Request quotes from different companies while looking for auto insurance to discover the best deal. Also, go to reputable organizations like J.D. Power to identify providers who are highly rated in your area.How Much Automobile Insurance Do I Require
Except for New Hampshire and Virginia, all states require specified minimum amounts of auto insurance (although you must pay a $500 uninsured motor vehicle tax in Virginia if you choose not to carry insurance). Other types of coverage, including medical payments, personal injury protection (PIP), and uninsured and underinsured driver insurance, are required in some states in addition to bodily injury liability and property damage liability.What Is Covered By Car Insurance
Bodily injury and property damage liability are two common vehicle insurance coverages that help pay for another driver's medical expenses and property damage charges when you're at fault in an accident. Following a covered loss, collision coverage pays to repair your car. Non-collision losses, such as a broken window, storm damage, theft, and vandalism, are covered by comprehensive coverage. Each state has its own set of liability insurance regulations. You must meet the lender's or leasing company's collision and comprehensive coverage criteria if you lease or finance a vehicle.