Can You Insure a Car Without Being on the Title?

A necessary requirement for all kinds of insurance is the person who acquires a policy must have an insurable interest in the subject of the insurance. You will have an insurable interest in property you possess.

What is an insurable interest? Insurable interest is one of the basics of insurance because in the absence of it, insurance is just the same as gambling and (even if legal) would not comprise a binding contract.

So can you insure a car without being on the title? The more appropriate question might be: do you have an insurable interest in it? It depends on the situation. For instance, if you are buying a car and the title has not yet been transferred to your name, you can let your insurance company know that you are in the process of acquiring the car then notify them as soon as the transfer is official so that the insurance company will cover the car until you acquire the title so that you can use it right away. You will need to give the insurance company more information on your car after you have taken possession.

Another case would be if you inherited a car from your parents. In this case, you can insure your car without a title but provide evidence of ownership to your insurance provider within 30 days from notice that you have inherited the car. In other words, you should register your car under your name within 30 days. It depends on the insurance company whether they will let you insure the car without having insurable interest in it.

There are also instances where you will need to register the vehicle attached to your policy. Then if you drive the car, only that particular car is covered. It means that if you get into an accident, the insurance company will repair the vehicle, but will not cover any injuries you might incur on yourself due to the accident. If you are not insured and drove an insured person’s vehicle, they will not be liable in case an accident occurs.

A non-owner can acquire insurance on a car if a proper and legitimate rental arrangement between the “owner” and the “lessee” is documented and can be construed as an enforceable document. Caution should always be taken when “taking over the expenditures”. Without an ownership understanding the state only recognizes an owner as the person named on the vehicle title.

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