Can you buy auto insurance for someone else?
No law prevents you from buying insurance for someone else's car, but not all companies permit it. Read on to learn the specifics of insuring someone else's car.
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Heidi Mertlich
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Heidi works with top-rated insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the need ...
Licensed Insurance Agent
UPDATED: Sep 3, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our 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 auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our 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.
On This Page
No matter where you live in the U.S., you can buy insurance for someone else’s car. While all states in the U.S. have their own unique set of auto insurance laws, no state legally prevents individuals from insuring a vehicle.
The minimum car insurance required in each state varies. However, almost all states require drivers to employ some type of auto insurance coverage, and insurance companies can choose whom they provide services for. If you attempt to insure a car, not in your name, your auto insurance company can refuse to add it. Most companies have specific guidelines detailing whose vehicles they will insure.
- In the U.S., no state law prevents people from paying for auto insurance coverage for vehicles not registered in their name
- You may purchase car insurance for someone else, but you’re generally required to have a legitimate reason to add another’s vehicle to your coverage plan
- You may include a vehicle registered in someone else’s name in your auto insurance policy
When can you buy insurance for someone else’s car?
Since no law will prevent you from doing so, most insurance companies will accept your attempt to pay for another driver’s car insurance under certain circumstances. Most cases will require you to have a relationship with the driver of the vehicle you are attempting to insure. Usually, legitimate circumstances fall into two categories: familial matters and close friendships.
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Can you buy auto insurance for a family member?
Family matters include purchasing insurance for your immediate family members.
Your Legal Guardians Have Several Vehicles
You can be covered under your parents’ car insurance, assuming they have a driver’s license. If you move out of your parent’s home, you may have to purchase a new auto insurance policy to insure the vehicle.
You Are the Legal Guardian of a Teenage Driver
If you are a parent or legal guardian of a teen driver, you can add your teenager to your policy or purchase a new one for them. However, insurance providers will usually not provide individual auto insurance to teenagers because of the high risk that new drivers carry.
Can you buy auto insurance for a friend?
Close friendships require a legitimate insurable interest before you may purchase coverage for your friend.
Your Friend Owns a Car They Do Not Use
If you have a friend who has multiple vehicles and you borrow their unused car for some time, you will be responsible for purchasing auto insurance coverage for that vehicle.
Your Other Friend Owns the Vehicle in Question
You can purchase an auto insurance policy for a friend if they cannot operate a vehicle because of conflict with the law. However, you will need your friend’s consent before you may purchase auto insurance coverage. Bear in mind that if your friend isn’t legally allowed to drive, the insured vehicle should only be operated by drivers who are in good standing with the law.
You Are a Cosigner
According to the Consumer Financial Protection Bureau, a cosigner pledges to pay back a loan if you do not. Typically, cosigners are parents, close family members, or close friends.
In other words, co-signing a car loan binds you to the financial responsibility of the loan assuming the individual you sign with fails to pay. When you co-sign, you can add the vehicle to your policy. You can also purchase a coverage plan for the vehicle.
What is insurable interest?
Additionally, insurance companies usually require individuals to have an insurable interest in a vehicle before adding it to their insurance policy. Insurable interest acts as proof that you have something to lose in the event of an accident.
Your insurance company will also ensure that you will not exploit the insurable interest principle before offering you auto insurance coverage for another driver’s vehicle. If auto insurance companies do not investigate an insurable interest claim, people may take out insurance policies for random people and financially benefit should they end up in a collision.
In short, auto insurance companies require you to establish a legitimate insurable interest before providing services to you. For example, if you rent a car you will be using for a significant amount of time, you may authorize a renter’s contract.
A renter’s contract will confirm to an insurance company that you are the sole motorist of the rental vehicle and will not exploit any insurance claims. In this case, you may purchase insurance from rental car insurance companies.
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What are my options while buying auto insurance for someone else?
You have two options if you wish to provide auto insurance for another driver’s car. First, you can look into buying a separate plan for another motorist’s car. Second, you may add another driver’s car to a coverage plan you already have.
Generally, adding another car to your auto insurance policy is quick and simple. In fact, adding a second car to your insurance is cheaper than purchasing a new plan. However, some auto insurance companies may restrict how many cars you can cover under your coverage plan.
The first option is also relatively simple. You may purchase a separate coverage plan for another driver’s vehicle. It is not required for both the motorist whose name is on the vehicle and the buyer of a plan to be identical.
Dodging Issues While Providing Car Insurance for Someone Else’s Vehicle
Whether you add another driver’s vehicle to your existing auto insurance plan or purchase a separate auto insurance policy, ensure that you honestly provide any information the company requests. If you fail to be honest, you risk losing your auto insurance policy altogether.
Remember to review the following before you submit a request to add a vehicle to your plan or attempt to purchase a separate policy for another driver:
- Completely know the conditions of your auto insurance policy
- Ensure you have a legitimate interest to make an insurance policy claim
- Accurately and honestly provide car ownership information
- Honesty is necessary
The Bottom Line on Buying Auto Insurance for Someone Else
Most states require all active drivers to obtain legitimate auto insurance coverage. However, no states have statutes that prevent individuals from providing coverage for a vehicle they do not own. Although contingent on an auto insurance company’s internal guidelines, you can buy insurance for someone else’s car with a legitimate insurable interest.
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Frequently Asked Questions
Can I buy auto insurance for someone else?
Yes, it is possible to purchase auto insurance for someone else, but there are certain considerations and requirements to keep in mind.
Who can buy auto insurance for someone else?
Anyone can buy auto insurance for another person, as long as they have the necessary information and authority to do so. This includes parents buying insurance for their children, spouses purchasing coverage for each other, or any individual with the consent and cooperation of the intended insured.
What information do I need to buy auto insurance for someone else?
To buy auto insurance for someone else, you typically need the following information:
- Personal details: Full name, date of birth, and contact information of the person being insured.
- Vehicle information: Make, model, year, and vehicle identification number (VIN) of the car being insured.
- Driving history: Details of the person’s driving record, including any accidents, tickets, or license suspensions.
- Insurance history: Previous insurance coverage details, including the length of continuous coverage and any claims history.
- Other relevant information: Additional details that may affect the policy, such as the person’s occupation, annual mileage, or specific coverage requirements.
Can I buy auto insurance for someone without their consent?
Insurance policies require accurate information, and the insured person needs to be aware of the policy terms, coverages, and obligations. It’s important to communicate and obtain the person’s consent before proceeding with the purchase.
Do I need the person’s driver’s license information to buy auto insurance for them?
Yes, the driver’s license information of the person being insured is typically required to purchase auto insurance. It helps the insurance company assess the person’s driving history and determine the appropriate premium based on their record.
Can I pay for someone else’s auto insurance policy?
Yes, you can pay for someone else’s auto insurance policy. Many insurance companies accept payments from individuals other than the policyholder. However, it’s essential to ensure that the policyholder’s consent is obtained and that the policyholder remains the primary contact for any policy-related matters.
Can I be listed as an additional insured on a policy I bought for someone else?
Generally, being listed as an additional insured on a policy requires an insurable interest in the vehicle. If you don’t have an ownership interest or a legal relationship to the vehicle, such as being a co-owner or a lienholder, it may not be possible to be listed as an additional insured. It’s best to check with the insurance company to understand their specific requirements.
Can I be the primary policyholder but have someone else listed as the main driver?
Insurance companies generally require the primary policyholder to be the owner of the vehicle or have an insurable interest in it. While it may be possible to have someone else listed as the main driver, the policyholder’s information should accurately reflect the relationship to the insured vehicle.
Can I buy insurance for a car that is not in my name?
Insurance companies typically require the person buying the insurance policy to have an insurable interest in the vehicle, such as being the owner or having a legal relationship to it. However, some insurance companies may allow you to insure a vehicle that is not in your name under certain circumstances. It’s best to check with the insurance company to understand their specific guidelines.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the need ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.