Can Someone Else Insure My Car if the Title Is Under My Name?

by Mary Jane Freeman
Having someone else insure your car may not always be a good idea.

In most states, the vehicle owner and person insuring the car don't have to be one and the same. Although this arrangement is legal, your insurance company may refuse to issue a policy under these circumstances. Even if it does, there is a risk it may later refuse to pay a claim because of the different names.

Car Owner and Policyholder Can Be Different People

Typically, the person who owns a car is the person who insures it. However, most states permit auto insurance policies to be paid by someone other than the registered owner. The same cannot be said of all insurance carriers. Some will not insure a vehicle if the policyholder and car owner are not the same. Even if someone other than the vehicle owner insures the car, it is possible the insurance company may later deny payment on a claim for this exact reason. This is particularly true if the company later determines there wasn't a legitimate reason for having a different person insure the vehicle, which may suggest fraud on the part of the individuals involved. For example, if the vehicle owner has numerous traffic violations and accidents on his record, he may get a friend or family member to insure the car on his behalf to avoid high insurance premiums. If the insurance company later determines this to be the reason for the different names, it may deny payment on a subsequent claim due to the driver's attempt to conceal his driving record and higher risk.

About the Author

Based on the West Coast, Mary Jane Freeman has been writing professionally since 1994, specializing in the topics of business and law. Freeman's work has appeared in a variety of publications, including LegalZoom, Essence, Reuters and Chicago Sun-Times. Freeman holds a Master of Science in public policy and management and Juris Doctor. Freeman is self-employed and works as a policy analyst and legal consultant.

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