You can insure a car that you don’t own in most states if you can prove insurable interest. This means you have a financial stake in the vehicle and will suffer a loss if anything happens to it, which reduces the risk of you committing insurance fraud.
For example, even though you don’t fully own a vehicle that’s leased or financed, you have money invested in the car’s wellbeing. Just keep in mind that some states, like New York, do not allow you to insure a car that isn’t registered to you, even if you can prove insurable interest.
How to Insure a Car That You Don't Own
1. Re-title the car
The easiest way to prove insurable interest in a car is to add your name to the title and registration. This is a good option if the vehicle isn’t financed and you live with the owner.
2. Prove financial dependence
You can prove insurable interest by demonstrating a financial dependence on the vehicle. For example, if you don’t own a car and have to drive a particular friend’s vehicle for your daily commute, you may be able to convince the insurer that you have a stake in the car.
3. Purchase a non-owner policy
If you can’t prove insurable interest in a car that you don’t own, then you should consider purchasing a non-owner insurance policy. This is a special type of insurance that covers you when you drive rented or borrowed vehicles, and it’s a good investment if you’re regularly driving someone else’s car.
However, you cannot purchase a non-owner policy if you live in the same household as someone who owns a car. In that case, the owner of the car should add you to their insurance policy as an additional driver. To learn more, check out WalletHub’s guide to non-owner car insurance.
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