Can You Insure a Car You Don’t Own? Learn the Main Methods Here!

Can You Insure a Car You Don't Own


Most people tend to associate auto insurance policies with people who own vehicles. However, can you insure a car you don’t own? Today we’ll answer this question. Not only that, but we’ll go over your main options when going through this process.

Is Insurance Necessary When Driving Somebody Else’s Car ?

Insurance When Driving Other's Cars

While drivers don’t need a license to drive a vehicle, they typically need insurance, no matter who’s the vehicle from.

And there might be times people might look for insurance for a car that won’t be theirs. Whether they are purchasing it as a gift for a family member or you need it for your business, this scenario is quite common.

Unfortunately, car insurance follows the vehicle rather than the driver. The same can be said of life insurance, as it’s for the driver and not the car.

Then, what about when an owner lends their car to someone else?

When this situation happens, a policy can cover the driver, called “permissive use.” Unfortunately, you won’t find this policy in certain insurance coverages. Not only that, but permissive use generally offers only liability coverages and nothing more.

Moreover, permissive use doesn’t include the commercial usage of a personal car. For this reason, it’s always great to do your research about which insurance policies the car owner has.

Can You Insure a Car You Don’t Own?

So, can you insure a car you don’t own? Long story short, you can. The most straightforward way is by adding the vehicle’s driver to your insurance as additional interest. However, you can also purchase a non-owner auto insurance policy.

If you’re not opting for either of these options, you’re probably going to have a hard time getting insurance for a car that’s not yours.

Typically, car insurance companies tend to ask for people who own the vehicle. That way, they can check if the owner of the vehicle has an insurable interest in it.

When you don’t have ownership of the car, it is difficult to prove you have a financial stake in it. And, without much proof, many companies aren’t willing to cover you as a result. Put differently, they don’t know how much you’re responsible for taking care of the car.

Methods on Insuring a Vehicle You Don’t Own

How to Insure a Vehicle You Don't Own

As we said before, there are two main ways in which you can insure a car that’s not yours:

  • Getting a non-owner insurance
  • Sharing auto insurance

We’ll go over each of these options. That way, you can know which option is best for you.

What’s a Non-Owner Car Insurance Policy, and How Do You Get One?

First, we have non-owner auto insurance.

As its name implies, this policy was made for people who don’t own a car but still need to drive it. Usually, it’s for people who occasionally rent or borrow a vehicle. For instance, if you’re on vacation and you’re considering renting, then this policy is what you’ll need.

Usually, the coverage of non-owner car insurance includes the one needed in your state. Moreover, this policy doesn’t have any collision or comprehensive insurance. For this reason, you can opt for full coverage rather than just liability insurance if you wish.

Another thing you should know about this insurance policy is that it doesn’t come with a deductible. In other words, you won’t need to pay any extra fees before the coverage kicks in.

Believe it or not, there are many scenarios where you might need this type of policy. Some of them include:

  • Needing an SR-22 or an FR-44 form
  • Frequently using car-sharing services
  • Renting and borrowing cars
  • Requiring getting or reinstate a license

When getting this insurance, make sure to go over the best providers in your area. Here at Payless Insurance, we offer a wide variety of auto insurance policies that best fit our customers’ needs.

How Do You Share an Auto Insurance?

Unfortunately, a non-owner auto policy might not be the best fit for you in some instances. One of the most common ones is when borrowing a car from the same household.

If this is your situation, you should consider sharing auto insurance with the car owner instead.

Usually, most auto insurance companies ask the driver to enlist all the household members with a license under their policy. These people are what we know as additional insured.

Sharing an insurance policy is quite common for people who drive their parents’ car.

Additionally, young drivers tend to avoid high car insurance quotes when sharing a policy. After all, these drivers tend to have lower credit scores that result in higher rates.

Sharing insurance policies can also go vice-versa. In other words, you can add the car’s owner to your insurance. And believe it or not, this action won’t change your insurance cost. It’ll simply add the person as an additional insured that has an interest in the vehicle.

Lastly, you can also share a car insurance policy by co-titling it or sharing its ownership. Nevertheless, you’ll want to check your state’s requirements for this process when going for this option.

Keep in mind that both insured people must live in the same household when going for this option. It won’t work for you if either person lives far away in a different city or even state.

How Can You Prove Your Insurable Interest ?

How to Prove Your Insurable Interest

Now that you know the top ways of insuring cars that aren’t yours, you should also be aware of proving your insurable interest when owning them.

As we said before, most companies prefer granting insurance to the vehicle owners rather than the borrowers. Ownership helps the insurers know the interest in the vehicle.

You can prove your interest in the car by submitting the car’s title, also known as the pink slip.

Now that you know the answer to the question “can you insure a car you don’t own” and which are your alternatives, you should get the option that best fits your needs.

Remember that if you have any questions or need a quality auto insurance policy in Texas, you can always count on our team. We offer the best car insurance rates in all the area.

Form Icon

    * We Don't Share/Sale Your Information to Anyone!

    Call Now: (832) 804-9286