Yes, you can insure a car that isn't in your name. The insurance options you have will depend entirely on where you live and your situation.
In states like Illinois, Indiana, Texas, Georgia, California, and Nevada, you basically have three main choices:
Being added onto the owner's policy,
Buying a non-owner liability policy
Becoming a co-owner of the vehicle.
Companies like Progressive, Dairyland and Bristol West will sell you a non owner policy starting at around $200 to $500 per year if you have a clean driving record. First you need to prove you have some kind of financial stake, or "insurable interest", in the vehicle. This means you're regularly driving a family member's car, leasing the vehicle or being mandated to cover its costs through a court order
What is Insurable Interest?
If you'd be affected negatively financially if a vehicle got damaged or written off, then you've got insurable interest.
Insurers need to make sure this isn't just some scam where someone is claiming damages on a vehicle they've got no intention of fixing.
You'll typically need to show proof that you own the vehicle, such as having the title in your name, being listed on the lease or loan for a vehicle, or having a court order assigning you financial responsibility.
If the people receiving a claim payout don't actually have to fix or replace the vehicle, insurers won’t issue a policy to them at all to prevent insurance fraud.
When Can't You Insure a Vehicle You Don't Own?
There are a few situations where you can't insure a vehicle you don't own.
Infrequent Use: Borrowing a car occasionally doesn't give you any kind of insurable interest. If you use a relative's vehicle fewer than 12 times per year you'll typically be covered under the owner's policy anyway. This is called permissive use, when the owner gives you permission to drive the vehicle.
No Insurable Interest: You can't insure a vehicle if you wouldn't actually lose any money if it gets damaged. When defining what counts as insurable interest, courts and insurers tend to look for things like a co-signed loan, paying for the vehicle's maintenance or relying on it to get to work.
State Restrictions: There are some state restrictions to be aware of. California's Insurance Code Section 381, insists the vehicle owner has to have some kind of insurable interest. Texas law says insurance needs to follow the vehicle registration. Illinois is a bit more flexible with family arrangements, but you still need to be able to show the policyholder that you use the vehicle regularly.
Suspended License: With a suspended license, most states require you to get a SR-22 before you can get added to an auto policy. In most states the SR-22 will need to be kept active for three years after a DUI. In Illinois, it's three years and in Texas, it's two years.
Owner Won't Allow It: Insurers will also need a signed authorization form from the registered owner before they will issue a policy to a non-owner. If they don't have one, the insurer can deny your claim for misrepresenting the facts.
Before you look into insuring a vehicle you don't own, make sure you understand state laws and insurer policies to see if coverage is an option in your situation.
Ways to Insure a Car You Don't Own
If you need to insure a car not in your name, you have several options.
Add the Vehicle Owner as an Additional Interest
Adding the vehicle's owner as an additional interest means they'll get notified about any changes to the policy, such as if it gets cancelled or lapses. This is a common thing to do if the vehicle is owned by a parent, spouse or partner.
Companies like Progressive and GEICO let you do this online through their portal. Smaller non-standard insurers like Dairyland and Bristol West need a phone call to their agents.
The owner gets copies of all the policy documents but isn't responsible for paying premiums, unless they're also listed as a named insured.
Apply for Co-Titling
Adding your name to the title of a vehicle is called co-titling.
In Illinois you and the current owner of the car have to both go to the Secretary of State's office to file your paperwork. You will need the title of the car, proof of insurance and $150 to pay for the new title.
Texas on the other hand needs form 130-U, a $33 fee and you both need to be at the county tax office.
California will charge you $23 plus whatever additional use tax applies. If there is still an outstanding loan on the car the lender has to give permission to change the title.
Co-titled cars now have two drivers instead of one, so your insurer will increase your premiums by 5% to 15%.
Transfer or Add Your Name to the Vehicle Registration
If the car owner no longer wants the car they can transfer both the title and the registration to you.
In Illinois you'll need form VSD 190, another $150 title fee and $151 for the standard registration.
Texas charges $33 for the title and $50.75 for the registration, plus whatever fees the county charges.
Some states let you add a second name to the registration without changing the title, which is useful if the owner still wants ownership of the car but allows you to get the insurance.
Illinois and California are among those states that will allow it, but Texas won't.
Having your name on the registration is a pretty standard way to establish that you have an insurable interest in the car, which is what most insurance carriers require.
Get Added as a Named Driver on the Owner's Policy
If you live with the car owner and use their vehicle regularly, then the simplest thing to do is to get added as a named driver on their policy.
Most major carriers like Progressive, GEICO or State Farm let you do it online in just a few minutes. If you use a non-standard carrier like Dairyland, Bristol West or National General you have to call them to get added to the policy.
Adding a driver with a clean driving record will typically add $20 to $50 to your premiums each month. Adding someone who has had a few traffic violations or who needs an SR-22 can cost as much as $100 to $300 extra per month.
Most insurers will require you to list every licensed member of your household on the policy, or exclude them.
If you get into an accident and the insurer finds out that you live with the car owner but aren't listed on the policy, they can decline to pay out on the claim.
Purchase a Non-Owner Car Insurance Policy
Non-owner car insurance is basically liability only coverage for people who don't have a car of their own, but drive one frequently.
Progressive, The Hartford, Dairyland and National General all sell non-owner policies. Premiums range from $200 to $500 per year for people with clean driving records.
If you're a high-risk driver, or need an SR-22 filing, that can easily jump up to $500 to $1,200. Standard non-owner policies always include bodily injury liability (usually 25/50 or 50/100 limits) and property damage liability (typically $25,000).
You can also add optional extras like uninsured/underinsured motorist coverage or medical payments. However, standard policies won't cover the vehicle itself, so you won't have collision or comprehensive coverage unless you buy additional coverage.
This kind of policy is great for people who find themselves renting cars a lot, using Zipcar or Turo or just driving work vehicles.
If you live with the car's owner and drive it regularly, most insurers will require you’re added to the owner's policy instead.
Can You Get Insurance Without a Title?
Yes, you can insure a car even if it still hasn't been titled, in some cases. Leased vehicles from Toyota or Honda, for example, are usually insured before you even take delivery.
When buying a used car, some states will even let you insure it before the title transfer is complete. Some exceptions are if you have a bill of sale or some other proof of the sale.
In Illinois, you have 30 days to transfer the title after you buy a car. In Texas, you have just 30 days also and need to have an active insurance policy before you can even register the vehicle
How Can You Insure a Car That Was a Gift?
When a vehicle is given as a gift, the original owner only needs to sign over the title.
In Illinois, this involves filling out form VSD 190, and paying a $150 title transfer fee. Family members don't have to pay sales tax on it in Illinois.
In Texas, it's a $33 title fee using form 130-U and families don't have to pay sales tax either.
California charges $23 for the title transfer plus county fees.
Before the title gets transferred, if the vehicle's still got an outstanding loan, then the lender has to clear the lien from the title. The new owner either pays off the balance or assumes the loan before the car's title can change hands.
How Can You Add a Car Not in Your Name to Your Insurance Policy?
To add a vehicle that's not in your name to your existing insurance policy, you'll need a few bits of information.
Get ready the 17-digit VIN, a letter from the registered owner giving you permission, and a list of all the household members who'll be driving it.
Your insurer will then use this information to add the vehicle to the policy. They'll be looking at the IIHS crash test scores, theft rates from the National Insurance Crime Bureau, and how much it costs to fix in the event of a crash.
If the vehicle has newer safety features like auto emergency braking or lane departure warning, then you might be eligible for a 5-15% discount.
If you add a second vehicle to your existing policy, you might qualify for a 10-25% multi-car discount, depending on the insurer.
