Car Insurance on Car With 2 Names on Title

While most states don't require the name on an insurance policy to match the name on a vehicle registration , individual insurance providers may have rules against underwriting a policy for which the name on the policy doesn't match the name on the registration.

Even if your insurance provider allows you to purchase a policy for a car that isn't registered in your name, the claims process can be complicated. There's a risk that you'll inadvertently violate the terms of your coverage.

Insurance companies may also choose to charge a higher rate to account for this risk. That's why it's crucial to find the cheapest car insurance policy for you. You can use Insurify to compare insurance quotes from up to 20 different insurance providers at no cost.

What does the law say?

Only the state of New York legally requires that the name on your auto insurance policy match the name on your car registration . If there are two names on the registration, you also need both names on the insurance policy . In other states, it's up to each insurance provider to decide whether they'll issue a policy for your unique situation.

Remember that most auto insurance companies will require you to prove insurable interest for the vehicle you're insuring. That means you have a financial stake in the car, and any repairs resulting from an accident will be your financial responsibility. This can be difficult to prove for a vehicle you do not own.

Who Insures a Car Not Registered in Your Name?

There are a couple of situations in which you might want someone else to insure your car.

You ask your child to purchase their own insurance policy.

You might own your family car but want your child to share some financial responsibility for its use. If the car title and registration are in your name but you're planning to insure the car in your child's name, you'll want to verify your child won't be violating the terms of your insurance coverage . If your child attends college out of state, this could violate your policy's terms, and your claim could be denied. Check with your auto insurance agent for more details.

Drivers under 25, especially teen drivers, pay some of the highest car insurance rates in the country. Check out our guide to cheap car insurance for drivers under 25, to make sure you get the best deal for the lowest price.

Someone else is the primary driver of your vehicle.

It might be the case that you have a car titled and registered in your name, but you're not the person who drives it. Perhaps your spouse, parent, or nanny uses the car regularly. Remember that your insurance policy covers anyone driving your car for occasional use, even if you lend out your car to a family member or neighbor. But most insurance companies will require someone with frequent access to your vehicle to be insured under a policy for that vehicle.

In either of these situations, you'll need to discuss the details with your insurance company . The owner of the vehicle (if it's not you) will likely need to consent to the insurance policy as well. And keep in mind that your premium could be higher for insuring a car that isn't registered in your name. The best way to find the lowest possible premium for you is to compare insurance quotes across car insurance companies with Insurify .

Alternatives to Insuring a Car Not in Your Name

If taking out an auto insurance policy for a car you don't own isn't an option, you can take a few alternative routes. And even if your insurance company will underwrite a policy for someone who is not the registered owner , you might find that other alternatives are more practical and will result in a more straightforward claims process.

Add your name to the registration

In most cases, two or more names are allowed on a vehicle's registration . This will likely be the most convenient alternative to insuring a car that isn't in your name. You can ask the vehicle owner to add your name to the registration, or they can transfer the registration to you entirely.

You'll typically first need to have your name added to the car title . Depending on the rules and processes set by your local department of motor vehicles , making the change could be very simple, or it might require you to apply for an entirely new title.

List both the owner and the driver on the insurance policy

Another option is for the owner of the car to add the non-owner to their insurance policy . Note that, in most cases, both parties will need to reside at the same address for your insurance company to agree to this. However, insurance providers make an exception for students attending college away from home. In fact, many car insurance companies even offer a discount if one of the listed drivers is away at school. Just keep in mind that adding a young driver to your insurance policy will increase your insurance rates . Make sure you use Insurify when buying a policy so that you get the best deal available.

Get non-owner car insurance

A non-owner insurance policy can protect you when driving a car that isn't your own. These policies provide liability coverage to people who don't own their own vehicles. Not all auto insurance companies offer non-owner car insurance , and it's not always necessary. If you drive someone else 's car infrequently, you'll typically be covered under their existing policy.

A non-owner insurance policy is an excellent option for a nanny or family member who regularly drives a car they don't own. This liability insurance will kick in as supplemental coverage in the event of an accident so that you won't be on the hook for damages not covered by the owner's policy.

Find Affordable Car Insurance in Minutes

Every driver's unique situation will require a different solution, and you may need to contact several insurance providers to find out if they can accommodate you. But first, it will be helpful to narrow down your options based on which companies can provide you with the lowest insurance rates .

This can be time-consuming if you have to research quotes from individual insurance companies . But with Insurify , you just need to enter your information one time, and you'll be able to view customized auto insurance quotes from up to 20 different insurance providers .

It only takes a few minutes to enter some information about your vehicle and driving history. You'll be matched with the lowest possible rates, including any discounts you may be eligible for. It's the easiest way to ensure you get the best deal.

Updated July 23, 2021

Lindsay Frankel is a full-time freelance writer specializing in personal finance and insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz. For the past year, she has written about car insurance for Insurify.

Car Insurance on Car With 2 Names on Title

Source: https://insurify.com/blog/car-insurance/name-on-registration-and-insurance/

Share this post