insure a car that isnt yours

How to Insure a Car That Isn’t Yours

Many people in major cities manage their daily lives without driving a car. However, there will be times when you need to run an errand or you decide to have a quick weekend getaway. So, instead, you rent a car or borrow from a friend to complete your obligations or trip. That is why purchasing an auto insurance policy is a must for all responsible drivers. 

For example, the auto insurance industry in Canada generated 27 billion Canadian dollars in net premiums, which shows their responsibility. In Canada, driving another person’s car is acceptable as long as the owner of the car has a valid insurance policy that covers any driver of the vehicle.

However, not all insurance policies are the same, and some may have restrictions or exclusions that may affect the coverage. For example, when you borrow a car, you are not covered by insurance if you get into an accident. The reason is simple—your name is not on the insurance policy. 

Before driving the vehicle, check with the owner and their insurance provider to see if there are any restrictions or exclusions that could affect the coverage. Furthermore, carrying proof of insurance with you while driving is always a good idea in case you are involved in an accident and need to provide it to the authorities. That is why the best option is to obtain a non-owner auto insurance policy. 

The following steps will explain how the non-owner auto insurance procedure works. 

What exactly is non-owner auto insurance?

Non-owner car insurance protects you if you are driving a car that you do not own. Purchasing this type of insurance policy can protect you from incurring significant expenses. It is the perfect insurance coverage for people who frequently borrow, rent, or use car-sharing services. 

This type of insurance is a great option for people who do not own a vehicle but want to be covered in the event of an accident. You can be added as an additional insurer on the owner’s auto insurance policy, or you can purchase an additional policy in the owner’s name.

It is important to understand that insuring a car in someone else’s name is not allowed everywhere, but there are always some exceptions. So, you can purchase an insurance policy for a car you don’t own if you add the vehicle owner’s name to the current policy. You can also do this if you have a monetary stake or an insurable interest in the car, or you are related to the vehicle owner or live in the same household. The following tips can assist you to insure a car that you don’t own. 

Share the same address as the car’s owner

If you share the same address as the car owner, you can easily become part of their insurance policy. The car owner should contact the insurance company and request to add your name to the existing auto insurance policy.

Add your name to the car owner’s auto insurance policy

Adding your name to the title might be a difficult and expensive process. However, to obtain insurance coverage, you must show proof to the insurance company that you are dependent on this vehicle to obtain comprehensive coverage from the insurer. 

Instead of attempting to obtain car insurance for a vehicle you do not own, it may be easier to be added to the owner’s auto insurance policy. Most car insurance companies would rather add a driver to an existing policy than insure a car that is not registered to you.

Become a co-owner or title owner

You may be able to add yourself as a co-owner on the car’s registration, depending on the state you live in. Once your name is on the car title, you can get an insurance policy on the car. Perform research and check the laws in your state, before you go forward with this. 

Get a permissive use

If the owner insures the car, you don’t need an insurance policy if you only use the car occasionally. Non-owners of vehicles can get permissive use, which means that licensed drivers with permission to use the vehicle occasionally, don’t have to be named on the auto insurance policy. 

Final thoughts

Purchasing quality car insurance is a necessity once you decide to drive a car. It doesn’t matter if you own it or not, make sure you are insured and well-protected while driving. Whether you become a co-owner of the insurance policy or obtain non-owner car insurance, make sure that both you and the passengers are safe.

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