Can I buy insurance for someone else’s car?
You can get insurance for someone else's car, but you need to have permission/authorization from the property owner to obtain insurance. The situation may arise every time a child is given access to drive a parent’s car, or you may purchase a non-owner car insurance policy to drive a car you borrow often but don’t own. If you need to get auto insurance for someone else’s car, enter your ZIP code below to find the best rates.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jan 20, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.
Insurance Q&A: “Can I buy insurance for someone else’s car?”
Most of us don’t enjoy buying insurance for our own property, let alone someone else’s belongings.
But the fact is it may be quite necessary to obtain insurance coverage for someone else’s car.
When Is This Necessary?
The situation above may arise every time a child is given access to drive Mom or Dad’s car. You may also be given access to a vehicle by a friend or relative.
Technically, everyone who takes out a loan or leases a car is buying insurance for someone else’s car…the bank, credit union or leasing company (loss payee).
These institutions really “own” the vehicle until it’s paid off. Don’t believe us? Stop paying the note and see how long the car sits in your driveway.
Also, purchasing rental car insurance constitutes insuring someone else’s property.
What Are The Rules?
1. You need to have permission/authorization from the property owner to obtain insurance.
Without going into too much legal detail, you cannot just go around buying insurance for other people.
2. The owner has to be the benefit of the insurance (or any other insurable interest, i.e. the bank that actually holds the note or a leasing company).
The person or entity that has financial interest, the legal owner of the property (who would lose out if the property was damaged) has to be listed on the property as the beneficiary of funds (loss payee) on the policy. You can’t take out a policy on your friend’s car and collect the money if it’s damaged…the money paid on a loss has to go to your friend or the institution who holds the note on the vehicle.
What About Liability Only Car Insurance?
A named non-owner auto insurance policy may be for you if the vehicle in question is not valuable enough to require full coverage (comprehensive and collision), isn’t being leased, or has no other additional interest.
The named non-owner policy is a liability-only policy that covers an individual who drives another person’s car from time to time. This policy comes in handy for those who regularly rent cars as well.
Note: If you are provided “regular” use of a vehicle, insurers typically demand you be listed as a driver on the policy that covers the vehicle. Regular use may be described as driving the vehicle at least once per month.