Can You Insure a Car You Don’t Own?

Every state except New Hampshire requires drivers to have liability auto insurance. But if you drive a vehicle you don’t own, getting car insurance is sometimes tricky. 

Fortunately, some types of car insurance coverage can help you out, like non-owner insurance or a multi-driver policy. Here’s what you need to know about getting insurance for a car you don’t own.

Can you get car insurance for a car you don’t own? 

Typically only the car’s owner can purchase an insurance policy. It’s sometimes possible to get car insurance for a vehicle that doesn’t belong to you. But not all insurance companies allow it, and laws vary by state. So it’s important to check with the insurer about coverage options for your specific scenario. 

For example, certain states, like New York, have laws that state the name on a vehicle’s registration and insurance policy must match. If you live in a state that allows you to take out insurance for a car you don’t own, insurers typically want you to know that you have a financial interest in the vehicle and are motivated to keep it in good condition. This can be tricky to prove.

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What is non-owner car insurance? 

Non-owner car insurance is a special type of liability car insurance. This coverage offers liability protection if you cause an accident while driving someone else’s car. But not all non-owner policies cover your injuries or damage to the vehicle. 

Non-owner insurance might be worth considering if you borrow cars on a regular basis or if you rent or use car shares often. Many (though not all) auto insurance companies offer non-owner car insurance. So, it’s a good idea to compare quotes from multiple insurers if you’re considering this type of coverage to make sure you find the best coverage available at the best price possible.

When you need insurance for a car you don’t own

It’s important to make sure you have the proper insurance coverage anytime you get behind the wheel. If you’re driving a car you don’t own — especially on a frequent basis — you’ll want to make sure you have the right kind of insurance protection in place.

Below are a few different scenarios where you might want to consider getting car insurance for a vehicle you don’t own. 

Renting a vehicle

When you rent a vehicle, you need to have some form of rental car insurance coverage to protect yourself from financial liability before you drive away with the vehicle. Before purchasing insurance from the rental company, check if you’re already covered.  

If you have standard liability coverage or a non-owner car insurance policy, coverage typically extends to rental cars. If you have comprehensive or collision coverage, that protection may also cover your rental. You may also have some coverage if you have a credit card with this type of benefit.^[1] 

Borrowing a vehicle

Car insurance typically follows the car. So if you’re driving a car that belongs to a partner, friend, or family member and have an accident, their policy may cover you depending on the circumstances. Before borrowing someone’s car, make sure that you’re covered in case of an accident.^[2] 

Non-owner coverage may offer some additional protection. And if you live in the same household as the policyholder, they can add you as a driver under a multi-driver policy. Some insurers even require this, so if you’re not listed and get in an accident, you could be financially liable. 

Driving a company vehicle

Your personal car insurance and non-owner policies typically won’t protect you when you’re driving a commercial vehicle — or your own vehicle for business purposes, like food delivery. Before driving a company-owned vehicle or your car for work, be sure you’re covered. 

Employers are required to insure company vehicles, so if you’re delivering pizzas in a restaurant’s car, you’d likely be covered. Food delivery services, like DoorDash, may offer some coverage when you’re on the clock. But it still pays to check company insurance requirements and with your own insurance to make sure you have the right protection.^[3]

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Receiving a vehicle as a gift

When you’re gifted a vehicle, you’re considered the owner and can register and insure it like any other car you own. You’ll need to provide proof of ownership, like a gift receipt or bill of sale. Requirements vary by state and may even be different when a car is gifted to a family member compared to a non-family member.

When the gifted car isn’t registered in your name, you’ll likely need to consider other options to make sure you’re covered. For example, a car that parents gift their teenager for their sixteenth birthday may be added to the family policy with the teen as the named driver. Check with your insurer before gifting a car to someone in your household.

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