Can You Insure a Car You Don’t Own?

Insuring a car that you don’t own can be a challenging task, but it is possible. One of the primary ways to obtain coverage while driving a car you don’t own is by purchasing non-owner car insurance. Other options include being added to the car owner’s policy or the car title.

What Is Non-Owner Car Insurance?

Non-owner car insurance is a type of insurance policy that provides basic liability-only coverage for drivers who do not own a vehicle. This coverage follows the policyholder rather than the vehicle, offering financial protection in case of an accident.

Non-owner car insurance is ideal for drivers who frequently borrow cars, rent cars, or are between vehicles. It is also useful for those who need SR-22 or FR-44 insurance due to a DUI conviction or other serious traffic violations.

What Does Non-Owner Car Insurance Include?

Non-owner car insurance typically includes:

• Liability Coverage: Covers injuries to others and damage to their property.
• Medical Payments Coverage: Covers medical expenses for the policyholder.
• Personal Injury Protection (PIP): Covers medical expenses and lost wages.
• Uninsured/Underinsured Motorist Coverage: Protects against drivers who have insufficient or no insurance.

What Does Non-Owner Car Insurance Not Include?

Non-owner car insurance generally does not include:

• Comprehensive Coverage: Covers non-collision-related damage such as theft or vandalism.
• Collision Coverage: Covers damage to the car in a collision.
• Towing and Rental Reimbursement: Covers towing costs and rental car expenses.

It’s important to note that non-owner car insurance is secondary coverage, meaning the car owner’s insurance will be the primary coverage in case of an accident.

How to Insure a Car You Don’t Own

Here are some options for insuring a car you don’t own:

• Non-Owner Car Insurance: Purchase a standalone policy that provides liability coverage.
• Proving Insurable Interest: Demonstrate that you have a financial interest in the car, such as using it for work.
• Getting Added to the Owner’s Policy: Ask the car owner to add you to their insurance policy.
• Changing the Car’s Title: Add your name to the car title to make it easier to obtain coverage.

Driving without insurance is not advisable as it can lead to legal and financial consequences. Nearly every state requires motorists to carry a minimum amount of coverage.

Challenges of Insuring a Car You Don’t Own

Insuring a car you don’t own comes with several challenges:

• Non-owner car insurance applies to the policyholder, not the car.
• Some states do not allow the sale of non-owner car insurance.
• Not all insurers offer non-owner car insurance.
• Finding quotes for non-owner car insurance can be difficult.
• Non-owner car insurance typically provides less coverage than traditional car insurance.
• Proving insurable interest can be challenging.
• Getting added to the car owner’s policy may be tough if you don’t live with the owner.

The Bottom Line

Obtaining insurance for a car that’s not in your name is not easy, but it can be done. However, some states and insurers may not provide the kind of coverage needed to protect a car that you don’t own. If you need assistance with your mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team of experts is here to help you navigate the complexities of car insurance and mortgage services.