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When insuring a car, you must have an insurable interest in the vehicle. This means that if the car is damaged or totaled, you’ll suffer financial loss.


Proving insurable interest can sometimes be difficult, especially if you insure a vehicle that isn’t in your name.

One way to demonstrate insurable interest is to show that you have a financial stake in the car, such as a loan or lease. You can also prove that you rely on the vehicle for transportation or business purposes.

If you can demonstrate that you would suffer financial hardship if the car were damaged or destroyed, then you should be able to obtain insurance coverage.


Unfortunately, in some states, insuring a car that's not in your name is against the law.

The name on the vehicle registration and insurance policy must match in many states for an insurer to open a policy. This is to prevent fraud and ensure that only those legally allowed to drive the car are insured.

If you're caught insuring a vehicle that's not in your name, you could face fines or have your policy canceled. So, if you're thinking about insuring a car that's not in your name, be sure to check your state laws beforehand.


If you need to insure a vehicle that’s not in your name or you live in a state where it’s illegal to insure a car that’s not in your name, never fear. There are five options for you to still insure the vehicle.

1. Non-Owner Insurance

When you don't own the car you're insuring, it's more difficult for the insurance carrier to assess the risk involved in insuring you. They may consider you a higher risk because they don't have as much information about you or your driving history. This can make it more difficult to find affordable insurance.

The best option for liability-only coverage is non-owner insurance, designed for people who don't own a car but still need liability coverage.

This type of policy is typically less expensive than a traditional policy because it has a narrower scope of coverage. If you're insuring a car that isn't in your name, shop around and compare rates from different companies to find the best deal.

2. Be Listed As a Regular Driver On the Existing Policy

If the car owner has an existing policy, you may be added to that policy as a driver. If you keep the vehicle at a different location than the existing policy shows, the insurance company will require an updated garaging address of the vehicle you are using. The policyholder may experience a rate increase based on your driving record and garaging address.

3. Get Added To The Registration

If you're looking to insure a car that isn't in your name, one option is to ask to be added to the vehicle registration.

By doing so, you'll be listed as a registered owner of the car and will have an insurable interest in insuring it. This can be a useful option if you're looking to insure a car you don't own outright but still have a financial stake in.

It's important to note, however, that insuring a vehicle in this way may be more expensive than insuring it in your own name. Therefore, it's essential to compare rates and coverage options before making a decision. Additionally, legal liability may potentially extend to all individuals or entities listed on the registration.

4. Have The Title or Registration Transferred to Your Name

If the car owner is willing, you can discuss having the title or registration transferred to your name. This will be the best way to ensure you can get the proper coverage for the vehicle in the case of an accident.

5. Gifted Vehicles in the Household

If you’ve given a vehicle to a child or grandchild who lives in the same home, this is another acceptable option for insurance on a car that’s not in your name. However, insurance company rules requiring how drivers are listed on policies differs, so check with your company.

While getting car insurance on a vehicle you don’t own is possible, it may be challenging. Explore the alternatives you learned about here to explore whether this is the right choice for you.

And if you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.

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