Question
Can I insure a vehicle that I don't own?
My mom just bought herself a new car and gave me her old one instead of trading it in. She is still the registered owner of the car but won't be driving it and since I don't live in her house anymore I have to get my own policy. Is it possible for me to buy insurance for a car even though it is titled and registered to someone else?
Answer
Great question! You are correct that you will need a separate policy from your mom since you don't live together. As far as insuring the vehicle under your name, you shouldn't have a problem doing so. Here is how to handle this:
- Have your mom listed as an insurable interest:
What this means is because your mom has an insurable interest in the vehicle, she needs to be listed on the policy. In this sense, your mom is operating like a bank would if they give out a loan. But like a bank, your mom does not drive the vehicle so she does not need to be listed on the actual policy as a covered driver - only an additional insured. The reason for this is simple; if you were to total the vehicle and have comprehensive coverage and collision coverage, the payout would go to your mom because she is the owner of the vehicle. Comprehensive and collision coverage are usually included in "full coverage", which you can see if you have this through you policy documentation. This will be all you need to do!