Can Car Insurance and Vehicle Registration Be Under Different Names?

In most cases, states don’t require that the name on an insurance policy match the name listed on a vehicle’s registration, though you may encounter added difficulties if they’re different. Insurance companies may have additional costs or guidelines in place to ensure that the name listed on the insurance policy matches the vehicle registration.

It’s important to consider the risks of purchasing an insurance policy for a car with a different registered owner. The claims process, for instance, may include added complications and confusion between you and your insurance company. Generally speaking, there is also a risk of unintentionally violating your insurance coverage terms.

Regardless of whether insurance companies charge more for customers with mismatched car insurance and vehicle registration names, finding an insurance provider that meets your insurance needs at an affordable price remains important. Drivers looking for cheap rates compare quotes online from the top car insurance providers in their area.

What does the law say?

Only one state—New York—requires that the names of policyholders taking out an auto insurance policy match the names on the car registration. For cars registered in two different names, both of those names need to be associated with the corresponding insurance. In all other states, each insurance provider decides how to handle the situation.

One reason that insurance companies are wary of policyholders who don’t own the vehicle they’re driving is related to the idea of insurable interest. Insurers like to know that their policyholders possess some amount of financial stake in the car—in regards to maintenance, accidents, repairs, and traffic violations. Not owning the insured car complicates this interest.

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Who insures a car not registered in their own name?

A couple of different scenarios result in someone insuring a car that isn’t registered in their name—often due to family member or household driving dynamics. They are described below. Drivers in this category will have to communicate with an insurance agent to determine their eligibility for auto insurance, insurance quotes, and more.

In locations without specific state laws, various insurance companies have requirements stating that vehicle title registration has to be under the name of the vehicle owner. As a disclaimer, this scenario may result in higher insurance premiums.

Parents Ask Their Child to Purchase Their Own Insurance Policy

Some parents share the financial responsibility of a family car with their children by having them purchase their own insurance policy. In this scenario, a car title and registration taken out in the parent’s name won’t match the name of the insurance policy owner. Before a family decides to do this, they should ensure the insured child won’t violate the insurance coverage terms.

For instance, a child enrolled in college out of state may complicate the claims process or violate the terms of their insurance coverage. Speaking to an insurance agent to work through the details is a good way to gauge any risks and understand the implications of a young driver taking out a car insurance policy in their own name. Young drivers tend to pay higher premiums.

Someone Else Is the Primary Driver of the Vehicle

Some car owners register a vehicle title in their name despite not being the person who drives it. A person close to the car owner—whether a spouse, parent, nanny, or caretaker—may regularly drive it instead and therefore need proof of insurance coverage in their name. This applies to most people with frequent vehicle usage and access to a car they don’t own.

Insurance policies do account for occasional car usage by someone other than the insurance policyholder, but any person with frequent and regular access should be insured to drive the vehicle. As mentioned, insurance coverage for someone who doesn’t own the car may result in higher insurance premiums due to the perceived risk.

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Alternatives to Insuring a Car Not in Your Name

Drivers considering insuring a car owned by someone other than themselves have alternative options. Even though many insurance providers let drivers get insurance on a car owned by someone else, these alternatives will allow for a greater chance at cheap car insurance and a less complicated insurance claims process.

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Add Your Name to the Registration

A vehicle’s registration usually allows room for two or more names, which means a person can be added with the approval of the owner. If the owner no longer drives the car, another option is to transfer the ownership and registration to the person looking to insure the car. This process presents an easier option than insuring a car that isn’t in your name.

A driver’s name can be added to a car’s registration at a local department of motor vehicles (DMV), depending on any guidelines or processes that DMV has. In some locations, this overall process is simple, but elsewhere, a new title may need to be applied for and issued.

List Both the Owner and the Driver on the Insurance Policy

Another option in this scenario is for the nonowner of the car to be added to the owner’s existing insurance policy. For this to work, both the owner and nonowner of the car need to live at the same address for the insurance company to agree to this policyholder addition. Often, an exception is made for students in college who live away from home.

Before adding a young driver or a person with a brand-new driver’s license to an insurance policy, consider the increased costs that may result from the driver’s high-risk status.

Get Nonowner Car Insurance

Purchasing a nonowner insurance policy is a third alternative to buying insurance coverage for a car you don’t own. These policies offer protection for a person driving someone else’s car, providing liability coverage in the event of bodily injury or property damage not covered under the owner’s existing liability insurance policy.

A nonowner policy works well for a family member or nanny who needs to use the car frequently. Nonowner insurance policies aren’t offered by all insurance providers and may not always be necessary. For instance, a person driving someone else’s car infrequently typically falls under the coverage of the car owner’s existing insurance policy.

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Finding Cheap Auto Insurance

Overpaying for auto insurance feels inevitable, but it really doesn’t have to be. To avoid paying too much, many drivers compare quotes online from the comfort of home. Consider the options that match your individual insurance needs at an affordable price.

Frequently Asked Questions