Can i get insurance for someone else car

Everyone knows that cars need to be insured. But what do you do if, for one reason or another, you cannot insure your own vehicle? Every situation is unique, so here is a look at some common scenarios to help you get a better understanding of who can insure your car.

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Can Someone Else Insure My Car?

Here are some specific scenarios where you may be considering having someone else insure your vehicle:

When the Driver is Young

With little driving experience and a lack of credit history, insurance companies tend to charge a lot to insure teenage drivers. Fortunately for teen drivers, insurance companies allow another party to insure their cars, although according to AutoInsureSavings, they do prefer that the other person is a family member. Because parents or guardians of the teen usually insure the car along with their own, they usually save money through a multi-car discount.

When You Aren't the Primary Driver

If you own a car that someone else drives for you because you're unable to drive yourself, CarInsurance.com reports that you have two options for car insurance: you could pay to insure the car on your own or you could have another party insure the car for you.

When you sign up for an insurance policy, the insurance company will usually ask you to list the person who is the primary driver of the car. If you are insuring the car yourself, you would provide the name of the person who drives for you. In this scenario, purchasing a policy yourself can make it easier to make changes to the policy if that person stops driving your car. It is important to note that if the insurance company knows someone other than yourself is driving the vehicle, they may charge a higher rate to insure the car.

You are a High-Risk Driver

If you have been convicted of multiple traffic infractions or have been convicted of a DUI, you may be subject to high-risk driver's insurance. If this happened, you are likely paying extremely high rates and will have to pay them for an extended period of time.

According to AutoInsureSavings, it's inadvisable to have someone else insure your vehicle. If you were in a serious accident, you could cause that person's insurance premiums to go way up. There could also be major repercussions if the insurance company found out someone else was insuring your car so you could pay cheaper rates.

Why You Shouldn't Insure Someone Else's Car

While you may be tempted to insure someone else's car to save them money, CarInsurance.com reports that it's generally a bad idea that could get you in trouble with both the insurance company and state. According to ValuePenguin by LendingTree, most insurance companies require you to have an insurable interest in the vehicle. This means that if a vehicle was damaged or completely destroyed, you would be impacted financially. For this reason, it's typically only the owner or lienholder of a vehicle who will insure it.

US Insurance Agents notes that if a vehicle is being loaned to you for a long period of time and you want to be responsible for the insurance, an insurance company will likely allow you to insure the vehicle, even if you don't own it yourself. That said, the owner of the car would still have to be listed on the policy as well. This would ensure that if there was an accident, the car owner would be included in the claim settlement.

Understanding Insurance Fraud

What an insurance company wants to avoid, according to PocketSense, is a situation where you're insuring a car for another car owner to help them save money on their insurance premiums, particularly if the car owner is the primary driver of the vehicle.

For example, if you insure your sister's car because you have great credit, a good driving record, and can get cheaper rates, but your sister owns the vehicle and is the primary driver, that is considered misrepresentation and is a form of insurance fraud.

Getting Lower Insurance Rates

Look around for different insurance rates, as the rating systems with different companies can vary significantly. You may want to consider taking a driving course on accident prevention or defensive driving to lower your insurance rates, although it's important to confirm the impact of a driving class with the insurance company before you sign up. If you drive fewer miles than the average driver, you may also be able to save money by getting a low-mileage discount. Another option is to lower the amount of coverage you have on your car, especially if your vehicle is older. Finally, if you have the ability to pay a higher deductible if you get into an accident, consider lowering your rates by raising your deductible.

Getting Insurance as a Non-Owner

While the person who owns a car is usually the one who insures it, most states will allow policies to be paid by someone other than the owner. However, many will not insure a car if the policyholder and car owner are not the same. If there is a claim on the policy and the policyholder and car owner are different, the insurance company may deny the claim.

There are some options for insuring cars when the policy owner and car owner are different, though. The most convenient may be to add the policyholder to the vehicle's registration or transfer registration to the policyholder. If you live in the same house as the owner of the vehicle, another option is to just be added as a driver on the owner's policy.

Regardless of your situation, there is usually an option for insuring a vehicle, whether it means insuring it through someone else's policy or taking steps to lower rates for a policy you buy yourself. It's important to avoid misrepresenting your situation with the insurance company to reduce rates, as this could get you in trouble with your state or the insurance company.

Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com. For any feedback or correction requests please contact us at .

Sources:

https://www.autoinsuresavings.org/can-someone-else-insure-my-car/

https://www.carinsurance.com/kb/insuring-anothers-car-to-lower-rates-fraud

https://www.valuepenguin.com/car-insurance-car-not-registered-to-you

https://usinsuranceagents.com/answers/2759/can-carry-auto-insurance-for-car-if-the-title-is-not-in-my-name

https://pocketsense.com/can-someone-else-insure-car-title-under-name-8112.html

Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.

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