How do You Get Insurance on a Car Not Registered to You?
If you are driving a car that is not registered to you, you may wonder how you can obtain insurance on the vehicle. Many agents will tell you that you cannot insure a vehicle that is not registered in your name. Is it possible to obtain insurance on a vehicle you do not own?
The Problem of Insurable Interest
In most cases, insurance companies are unwilling to extend insurance on a car that is not registered to you. This is because you do not have “insurable interest” in the vehicle. Financially speaking, you do not stand to lose anything if the car is damaged or destroyed. This would be like trying to take out a life insurance policy on your neighbor – if the neighbor dies, you would not suffer a financial loss. Thus, the standard position in the insurance industry is that having an insurance policy without insurable interest would make you “better than whole” if a claim was paid under the policy.
Becoming a Co-Registrant
The simplest way to get around the problem of “insurable interest” is to become a co-registrant of the vehicle. This establishes insurable interest, even though the car is not solely registered to you. This means that insurance companies will be willing to extend insurance coverage on the vehicle.
Getting “High Risk” Insurance on a Car Not Registered to You
Another possibility for getting insurance on a car not registered to you is contacting a “high risk” company. These companies specialize in insuring people in unusual circumstances, and they will sometimes be willing to provide coverage for the vehicle you are driving. Keep in mind that there may be special restrictions placed on your policy, since you do not have insurable interest. You may only be able to drive the car under limited circumstances, or you may only be able to obtain liability coverage, with no coverage for the repair or replacement of the vehicle.
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