How to Insure a Car You Don't Own

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Driving a car (Photo: @WR36 via Twenty20)
Regardless of the reason, insuring a car you don’t own is often very difficult. Most insurance companies allow only the titled owner of the car to purchase insurance, as they have an insurable interest in the vehicle. So, it’s difficult… but not impossible! Here are five ways to insure a car without being the vehicle’s owner.

1. Contact a car insurance agent directly and ask what your options are

Because insurance coverage varies by plan and provider, if you are interested in insuring a car that you do not technically own, you should first reach out to the vehicle’s current insurance provider and see if they offer any options to add you to the existing insurance contract.
In many cases, this will be a hard sell because policyholders are usually required to have an insurable interest, or level of ownership, in the vehicle to show that they have a personal stake in what happens to it. However, calling an agent to secure a personal deal is always worth a shot. If this method doesn’t work, there are a few other options to consider depending on your specific needs.

2. Add the owner of the vehicle to your car insurance policy as an additional interest

If discussing the matter directly with the current insurance provider doesn’t get you the results you need, you should consider taking out your own policy with another company and adding the owner of the vehicle as an additional interested party. This is typically the easiest method to insure a car that you do not own outright and will allow you both to retain insurance rights without increasing your monthly insurance premium or deductible.

3. Add yourself to the car insurance policy of the vehicle owner

This method only works if you and the other interested party live at the same address, so it is a great option for roommates and families to consider when sharing vehicles. Because ZIP codes come with their own unique risks and hazards, they are a large determinant for the cost of insurance plans across the nation. Insurance providers are wary to provide coverage for two or more parties who live in different areas, as the unique driving situation makes it harder for them to accurately calculate risk.
This option will certainly increase your car insurance rate, regardless of your record, because it is adding an additional level of coverage to your existing plan in the form of another insured driver.

4. Purchase a non-owner car insurance policy

Non-owner insurance policies are a type of liability insurance that is typically utilized by people who drive another person’s vehicle sparingly. While this policy type should never exist as a standalone insurance policy for any given vehicle, as it does not provide collision coverage or replace comprehensive insurance, it is a great add-on to include in your insurance plan to cover drivers who may need basic insurance and liability coverage but will not be driving the vehicle very often.

5. Co-title the car and add yourself as an owner

Though laborious, co-titling the car and adding yourself as one of its owners is the most foolproof method to insuring a car. If the car has yet to be paid off, you will have to prove that you rely on the car to satisfy your daily needs, which can be a difficult but worthwhile endeavor.
However, once the process is complete, you will be able to select whichever insurance provider and coverage plan you wish, affording you the opportunity to find the perfect plan that suits your current financial situation and specific insurance needs.