Obtaining insurance for a vehicle that you are not the titled owner for is difficult to do. Most auto insurance policies will cover the vehicle that is owned by the policyholder. There are going to be situations where it is possible to get a policy for a car that you take custody of but don’t have registration for, but most states and a majority of auto carriers prefer not to do this. The reason boils down to having ‘insurable interest’ for the vehicle.
Obtaining insurance for a car that you own brings with it an assumption that you have a vested interest in the health of the vehicle. Car owners are not going to want anything to happen to cause them a loss on their investment. When the car is not registered to you, the insurance company cannot make the assumption that you have any vested interest in the car. Having an accident in a car that you didn’t purchase will cause you no loss. Prior to trying to prove that you have ‘insurable interest’ it’s critical to realize that there are instances where this will be impossible.
State Laws
There are specific states where you cannot get a registration for a vehicle unless you have insurance such as New York. If you are set to inherit a car with your relative’s name on the registration, it is assumed that there would be an insurance policy standing with that same person’s name on the plan. The name on the insurance card has to match the name on the registration card or the registration will be suspended, meaning that you can’t insure a car that you are not registered to in the state of New York.
There may not be great details online for the state that you live in. It may be necessary to call your particular state to find out specifically what the particular state laws are for your area as to whether you are legally able to have an insurance plan in a name other than what is on the registration card.
Getting Auto Insurance For A Car You Don’t Own
If you are left with no option but to obtain auto insurance for a vehicle that you do not own, it will be necessary for you to shop for your insurance and talk to multiple agents until you find one who may be willing to help you, if the state will even allow it. Ideally, it is going to be necessary to convince them of the stake that you hold in the car, e.g. it is your only transportation for work. The very worst thing to do would be to lie which would ultimately render you uninsurable if they were to find out. Always be truthful.
Alternatives To Obtaining Insurance For A Car You Don’t Own
There could be some viable choices for you based on your situation before you opt to go through the red tape of getting insurance for a car that is not registered to you. The simplest alternative is going to be for you to try to have yourself added to the registration of the vehicle or have the registration of the car transferred into your name if this is not a vehicle that you are inheriting. In a majority of scenarios, there can be two or more names on a title for a vehicle. Once your name has been included on the title, you can then apply for an insurance policy for the car even if you don’t reside in the same place as the other registered owner.
The other option is going to be to get non-owner car insurance for the vehicle.
Non-Owner Plans
This type of insurance option is not going to be the way that most people want to take or are able to take, but if you are into renting vehicles as opposed to taking one into your custody, a non-owner policy could be the perfect solution. This type of plan is going to give you the appropriate amount of liability insurance to allow you to be able to drive in safety and comfort in the instance that you have any type of at-fault accident. The registered vehicle owner is going to be the one who’s primary insurance plan will take effect in case of any damages or injuries that would happen to the vehicle or you as the driver. But if you are inheriting or taking over a car, this isn’t really the right option for those particular situations.
Summary
The first thing you want to do when you take custody of a car is to call the Motor Vehicle Administration for your state and find out the legalities involved with the registration process and the insurance. Once you know how your state handles the situation, you can move on from that point. If you have no way of being added to the registration, e.g. if you’ve inherited the car, insuring a car you don’t own may prove to be a very difficult process.