Most insurance companies have their own set of rules when it comes to insurance policies and sometimes there is an ambiguity about whether or not you can insure someone else's car. According to some legal experts, an individual is not allowed to insure in their name any property belonging to someone else. This effectively means that you cannot insure a car belonging to your friend or a rental company. The person who owns the vehicle has to get it registered under his or her name and only then would they be eligible to obtain insurance coverage. However, if you drive someone else's car occassionally, then you can seek a non-owner's insurance policy. Typically, such policies include liability, medical and uninsured or underinsured motorist coverage. Non-owner's insurance policies generally do not include comprehensive coverage, monetary protection against collision or reimbursment for towing and rental charges. This applies to all vehicles you might rent or borrow with permission. You can also take out insurance for somebody else's car when it has been in your custody for one one reason or another. Follow these steps to determine if you can insure someone else's car:
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Determine that the vehicle you are planning on insuring is registered under the name of the owner. It may belong to a friend, relative or rental agency.
Go online and visit the Web sites of several insurance companies to learn about their policy options. Read the information carefully and thoroughly.
Set aside the names of insurance companies that offer non-owner's insurance.
Use the customer service phone number mentioned on the Web site of each company to contact an agent or customer service representative to learn more about your options.
Tell the agent or representative that you wish to use a car owned by your relative, friend or a rental agency, whichever the case may be.
Inform them of the situation clearly and explain that you are planning to obtain separate insurance coverage for the vehicle in question. Be sure to mention that you are interested in getting a non-owner's policy.
Follow the procedures for obtaining non-owner's insurance offered by the company if the quote is acceptable to you. If not, contact other providers untill you get one that is.
Tips and warnings
- Check the current insurance status of the car before approaching any agent.
- If you are an occasional user, see if you can get the policy for a specific number of days in order to save on the premium.
- Get permission from the owner of the car, preferrably in writing, to drive the car after obtaining the insurance to avoid any future legal complications.