Once you have a car under your name, insuring it is inevitable if you want to protect yourself in case of an accident. However, if you are not the one who is going to insure it, complications might arise. It’s thus quite often that this question comes up; can someone else insure my financed car?
And while the answer to it might vary depending on different situations, the best way to stay safe is to understand what it takes to get this done without your case being considered as insurance fraud.
Someone else can take out an insurance policy for your car, and it is allowed in most states. But there’s usually a lot that goes to it, so it’s always wise to know before you step into this kind of insurance policy. Most states can allow, and it’s even legal for a vehicle to be insured by someone else other than the owner. However, keep in mind that the insurance company might refuse to issue any policy in such a case anyway.
And if it does, the chances are high that complications might come up in the event of a claim, and more likely than not you might end up without any compensation. And all could be blamed on the different names on the policy, so it’s quite a risk anyway.
However, while this could hardly be the case in most circumstances, you should be aware that this possibility is real because the insurances companies are not usually bound by the law to accept such an application.
What to do
If this turns out to be the case for you, all hope is not lost still, although you will need to change a few things. And if you sense that you might end up in such a situation, then it’s always wise staying ahead and ensuring you are safe.
In some instances, the insurance company might just decide to make things easier for you, provided they can add their name to the ownership of the vehicle, also known as co-titling.
It cannot be denied, however, that most vehicle owners looking for someone to insure their car have different reasons to do so. And any of these many reasons out there could be your case. Usually, the persons allowed by the insurance company to insure a car on behalf of the owner include the employer, a parent, or a leasing company.
Getting someone else to insure your car
The first step too getting around this is ensuring that the person who is to get an insurance cover for your vehicle is allowed by the company. It could be one from any of the groups mentioned above, but things could work in a different method too since the insurance company usually checks to establish whether one has an insurable interest upon a request for such a policy.
Another thing you need to keep your eyes focused on is the cost of the premium, in which case it could be higher in a circumstance like this as compared to standard premiums rates. But if you can’t seem to find an insurance company willing to cover you this way, then you might consider taking on a short-term policy instead.
And that’s not all there is to work with; you could still work your way out by doing a bit of footwork and finding any reliable options at your disposal that you can make the most use of in case you have to have someone get auto insurance for your vehicle.
Yes! It is possible
If you have been asking yourself can someone else insure my financed car, you need not worry much about it. The possibilities of getting this done are high, which could work in your favor. And since you understand that not all insurance companies take this route quite often, it is always wise to ask your insurer beforehand and be sure that the company can offer such a policy.
Remember, although the vehicle might be registered in a particular name, the person who usually drives it consistently should be the one designated as the driver. So make sure to make everything clear to the insurer too, since in some cases, one person might be the driver, and the others in the family could be licensed drivers, so ensure to add them to the policy too if this is the case for you.