June 20, 2023

Can I Insure A Car I Don't Own and Will It Be Covered?

car insurance broker

This question comes up from time to time about insuring a vehicle you borrow.

Guess what?

You can't insure a car that doesn't belong to you.

I know, I know; it sounds crazy, but it's true. We get asked this question all the time. So, let me break it down for you. If your name isn't on the title, then you can't insure it.

It's as simple as that.

Let me give you an example. There was this girl who sold her car to her mom because she couldn't afford the payments anymore. She still wanted to insure it as she owned it, and what happened? She got into an accident and found out she had no coverage because she didn't own the car. Ouch, right?

And hey, maybe you're thinking, "Well, I'll just insure my crazy neighbor's car because I know he's gonna wreck it." Nope, sorry. You can't insure a car you don't own, even if you want to.

Can I insure a car I don't own but drive?

Now, if you're borrowing someone else's car and you're worried about being covered, we've got a solution for you. It's called a non-owners insurance policy. This policy provides liability coverage in case you cause damage or injury while driving. So, if you're borrowing your friend's car and you hit someone, you'll have some coverage.

But if you're thinking of buying a
car for your kid and putting it in their name, be careful. If their name is the only one on the title, they'll have to be listed as the primary driver on the policy, which means they'll miss out on some discounts. And if you're not listed as a co-owner, you might find out too late that the policy was miss-insured and it won't cover any claims.

Insurance for car I don't own

Non-Owner Car Insurance policy

If you are driving other people's cars and are concerned that you as the driver are covered, we recommend a non-owners insurance policy.  

This type of policy provides liability coverage in the event you cause bodily injury or property damage.  

You never know if the vehicle you are using is insured or not, but by having a non-owner auto insurance policy, you'll have coverage.

Note, this will provide any coverage for the vehicle you are using, it's purely a liability policy. 

In conclusion, let's make it simple: if you don't own a car, you can't insure it. But if you're borrowing one, get a non-owners policy. And if you're buying one for your kid, be careful how you do it. Now, go forth and drive safely (and legally!)

If you own a vehicle in your name or would like a non-owner policy quote, click the link below.

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John Espenschied is a long-time veteran of the insurance industry. He's worked with thousands of clients over the years, helping to protect their personal and business needs. John's goal is to provide the best advice possible to assist customers in saving money while protecting their property and securing their financial future.
He truly enjoys helping others and takes great satisfaction in providing top-notch customer service. When he's not working, John has fun spending time with his family, golfing, bike riding, and blogging on insurance topics.