Can college students without a car get car insurance?

Yes, you need insurance even if you are not driving your car, since registered vehicles are required to carry at least minimum coverage. If you don’t plan on driving for an extended period, you might be able to cancel your insurance, but your state may also require you to cancel your registration and turn in your license plates. Or, if you are just storing your vehicle for a while, you may be able to opt for a comprehensive-only policy instead.... read full answer

Why You Need Car Insurance Even When You’re Not Driving

• It is required by almost every state for registered vehicles. Almost every state requires registered vehicles to carry at least the minimum level of coverage. Even if you are not driving, having a registered vehicle without insurance is illegal in most states. Plus, the couple states that don’t require insurance do make you demonstrate financial responsibility in other ways.

• It may be required by a contract. If your vehicle is financed, your lease or loan contract might require you to carry some level of insurance. For example, many lease or loan contracts require comprehensive insurance and collision insurance in addition to your state’s minimum coverage requirements.

• You can prevent a lapse in coverage and rate increase. If you plan on driving regularly in the future, and therefore would need to purchase car insurance again, insurance companies would see a gap in your insurance coverage and label you a high-risk driver. Being labelled a high-risk driver means your insurance premiums will be much higher until you prove yourself again. You can avoid that by keeping continuous insurance coverage.

• You can protect your car against non-accident-related damages. If your vehicle gets stolen or hit by a falling tree, for example, you will need to have comprehensive coverage to be compensated.

Key Things to Know If You Don’t Plan on Driving for an Extended Period

If your vehicle is in storage and you are not driving for a long period of time, you may be able to save money by opting for a comprehensive-only policy rather than keeping your regular car insurance policy. Comprehensive-only insurance covers potential incidents while your vehicle is in storage, such as theft or weather-related damage. However, insurance companies may require your vehicle to be in storage for 30 days or more, and some states do not allow you to have a comprehensive-only policy.

Another option if you do not plan on driving your vehicle for a long time is to cancel your registration and insurance. Almost every state requires registered vehicles to carry at least a minimum amount of insurance coverage, so by cancelling your registration, you can avoid this requirement.

Finally, if you are not personally driving your vehicle but someone else is, you will still need to insure the vehicle under your name. Insurance policies typically follow the car and not the driver.

To learn more, check out WalletHub’s guide to how much car insurance you need.

You can insure a car that is not in your name in some states but not everywhere. Insuring a car that is not in your name depends on two things: state laws and insurable interest. Some require the names on a car’s insurance policy and registration to match. If they do not, then you won’t be able to insure that car. Other states, such as California and Florida, do not have that rule, making it possible to insure a car that is not in your name.... read full answer

In order to insure a car that you don’t own on paper in states that allow mismatching names on a car’s insurance policy and registration, you will need to show that you have an “insurable interest” in the vehicle. That basically means you have a reason to insure that particular car.

If you own a car, it is viewed as your investment, which you have reason to protect with insurance coverage. If you do not own a car, then it becomes trickier to prove insurable interest. However, if you are able to demonstrate that the car is pertinent to your daily life or your work, you might be able to find a policy.

When You Can and Can’t Insure a Car That Is Not In Your Name

• You can insure a car that is not in your name if you live in a state that does not have the matching-name requirement, and if you can demonstrate insurable interest in the car.
• You cannot insure a car that is not in your name if you live in a state that requires the names on a car’s insurance and registration to match, such as New York, and you are unable to demonstrate insurable interest in the car.

If you still need to insure a car that is not listed in your name, especially in a state that requires insurance and registration to match, you can consider some of the following alternatives:

Co-Title - You should consider being added as an owner on the car’s registration, if possible. A car can have more than one owner, and they do not have to live together.

Additional Interest - You can consider adding the car’s nominal owner to your insurance policy under what is known as an additional interest. An additional interest simply states that someone else has an insurable interest in the vehicle. If you’ve ever financed a car using a bank loan, the bank was listed as having additional interest in your car, even if it didn’t actively use the car.

Additional Driver - If possible, the owner of the car can add you to their insurance policy as an additional driver. This is recommended in situations where you live with the owner of the car you wish to drive.

Non-Owner Insurance - A non-owner insurance policy is a liability-only policy that provides coverage if you are driving a car you do not own. This policy supplements the primary policy of the car.

If you do not live with the owner of the car you plan to drive, pursuing a non-owner insurance policy might be the easiest approach to ensuring you are covered in case of an accident.