In our business we get a request like this from time to time. It always raises a big red flag. It's a claim nightmare waiting to happen. The question I always ask but is rarely answered truthfully is "why would you want to insure something you don't own?". The truth is usually that someone will let them use a car as long as they agree to insure it. Or, someone will insure the car as if they own it and just not tell us they don't own it. That's hwy our CSRs will ask to whom the car is titled.
You cannot insure something you don't own because you don't have a loss if it's damaged or stolen. That's insurance 101 - insurable interest. If the car is damaged, the insurance company will only pay the person to whom the car is titled. If you lie on the application and say that the car is titled to you when it's not, you may actually get paid. However, if the insurance company does just a little research you could find yourself in a world of trouble.
Here's the correct way to handle this situation. The insurance must be written in the name of the titled owner of the car. The person who is driving the car is listed as the primary driver. If the agreement is that the driver is the person who actually pays the insurance, that's fine, the insurance company isn't concerned with that. But be aware that anything that happens with that car will impact the owner.
A cleaner way to do this is to actually give or sell the car to the person who will be driving it and transfer the title. The insurance can then be written properly and there will be no liability issued to speak of.
Be smart, find an agent you can trust. They'll tell you legal way to handle this. Do it the right way and avoid a nightmare at claim time.
Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
I know of one exception where this is acceptable and only a few insurance carriers will allow this. Lets say for example Daddy buys his daughter a car but the car is registered to Daddy. The daughter goes and purchases her own policy and insures the car that is not in her name. As long as this is the daughters primary car and you disclose the Dad owns the car this may be acceptable. Dad will be listed as either a driver or excluded but the daughter in this case can buy an insurance policy and not own the car. Again everything must be disclosed.
I would like to add my two cents to this question, as I’m not sure a couple of situations have been covered. But the question is “Can I insure a car I don’t own”.
If you own and insure a car, your own policy should extend your coverage to any car you are driving (borrowed, temporary substitute or short-term rental) as long as it is not another car you own or regularly use. In that sense, your policy then “insures you driving a car “you don’t own”.
If you don’t own a car but often drive cars you don’t own and want to make sure you are adequately covered, you should be able to purchase a form of “Drive Other Car” coverage. It’s common to see this coverage on business auto policies covering the business owner and family members when the business owner doesn’t own a personal car but is provided vehicles by the company. Here again you are in a sense “insuring “ a car you don’t own.
In my practice, I like to make sure every client has access to an automobile insuring agreement, as a named insured on a policy covering an owned car, as a spouse or family member residing in the household or some form of Drive Other Car coverage. I like to see adequate limits, comprehensive and collision and appropriate uninsured/underinsured coverage. No responsible adult should be without some form of auto insurance coverage; as an owner, operator, passenger or pedestrian.
OK, I feel compelled to add a little bit more to what I perceive as some good answers here. There are some very good reasons to buy Extended Non owned Coverage or Non Owned Coverage if you are using a company car. Yes the employer who owns the car is going to typically have it well insured for liability ( their business is at stake). Your welfare, life and future income is not particularly pressing to your employer have your owned extended non owned liability and Uninsured Motorist protection
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You cannot insure something you don't own because you don't have a loss if it's damaged or stolen. That's insurance 101 - insurable interest. If the car is damaged, the insurance company will only pay the person to whom the car is titled. If you lie on the application and say that the car is titled to you when it's not, you may actually get paid. However, if the insurance company does just a little research you could find yourself in a world of trouble.
Here's the correct way to handle this situation. The insurance must be written in the name of the titled owner of the car. The person who is driving the car is listed as the primary driver. If the agreement is that the driver is the person who actually pays the insurance, that's fine, the insurance company isn't concerned with that. But be aware that anything that happens with that car will impact the owner.
A cleaner way to do this is to actually give or sell the car to the person who will be driving it and transfer the title. The insurance can then be written properly and there will be no liability issued to speak of.
Be smart, find an agent you can trust. They'll tell you legal way to handle this. Do it the right way and avoid a nightmare at claim time.
If you own and insure a car, your own policy should extend your coverage to any car you are driving (borrowed, temporary substitute or short-term rental) as long as it is not another car you own or regularly use. In that sense, your policy then “insures you driving a car “you don’t own”.
If you don’t own a car but often drive cars you don’t own and want to make sure you are adequately covered, you should be able to purchase a form of “Drive Other Car” coverage. It’s common to see this coverage on business auto policies covering the business owner and family members when the business owner doesn’t own a personal car but is provided vehicles by the company. Here again you are in a sense “insuring “ a car you don’t own.
In my practice, I like to make sure every client has access to an automobile insuring agreement, as a named insured on a policy covering an owned car, as a spouse or family member residing in the household or some form of Drive Other Car coverage. I like to see adequate limits, comprehensive and collision and appropriate uninsured/underinsured coverage. No responsible adult should be without some form of auto insurance coverage; as an owner, operator, passenger or pedestrian.