How can I get car insurance for a car not in my name?
Sunday, July 20th, 2008 at
8:41 am
Amber B asked:
I have the opportunity to take over payments on a car. Since the title is not in my name, how can I get car insurance for this car until the title is transferred into my name? I’d heard there is a form that the owner can sign that verifies that I will be the only one driving this vehicle. Any suggestions would be helpful.
I have the opportunity to take over payments on a car. Since the title is not in my name, how can I get car insurance for this car until the title is transferred into my name? I’d heard there is a form that the owner can sign that verifies that I will be the only one driving this vehicle. Any suggestions would be helpful.
Tagged with: Insurance • Insurance Car • Opportunity
Filed under: Car Insurance
Like this post? Subscribe to my RSS feed and get loads more!
I believe if you go into an insurance branch and ask them you might be able to get it into your name. if you are going to transfer it into your name in the near future I don’t see any problem with it. Hope this helps……
This is a question that you should ask an auto insurance company. The know all about their business and the laws that apply. Just call around. Good luck.
In my state of Florida, you can’t. You must have a registered vehicle attached to your policy. Then if you drive another car, only that car is covered; not you. Meaning if you have an accident, the insurance company will repair the vehicle, but will not contribute to any injuries you might incur. If I was not insured (by another vehicle that I owned) and drove an insured person’s vehicle; they would not be covered in case of accident. In our state the owner you mentioned would have to have coverage on that vehicle that they own, even if you drive it. Here, there is no form of affidavit that can change the situation. I would call a major carrier and ask them what their policy is on this matter.
In California you can get a non owners policy – sort of like Insurance on your Driver License!
You CAN’T. It is called an insurable interest and you ain’t got one.
The only OTHER time that a non-owner can get insurance on a car is in the event of a proper and legitimate leasing arrangement between the owner and the Leasee is documented and can be constued as an enforcable document.
As a WORD of caution, taking over the payments without an ownership understanding (the State ONLY recognizes an owner as the person NAMED on the vehicle title) is courting trouble. If, the lien holder were to find out that this (a defacto failure to make the payments by the actual borrower) event took place they COULD rightfully and leagally reposess the car and leave you sitting on the courthouse curb legally.
If you are credit worthy approach the lien holder (with the owner) and see if they can work out SOME accomodation to put you on as the owner (this is TRICKY as he would need to renounce all rights and interest in the vehicle) and subsequently draw up a loan arrangement with you. NOT an easy legal manuver to perform.
I did this once on a large truck for a guy. I went to the lien holder (The Associates) and sat with the paper holder and told him of our plan (I ALSO told him -truthfully-that I had a mechanics lien (superior to his) and was ready to move on it. I was WILLING to apply the mechanics lien balance against the owners interests in exchange for making the balance of the loan payments to them. All agreed to the arrangement in writing but I STILL had NO legally enforcable ownership interest in the truck untill the loan was satisfied AND the title was made over to me. At ANY time I COULD have been aced out of this arrangement or at least been forced into a legal suit to let a judge rule on my rights.
The truck would not have been worth aTHAT much involvment. Fortunately, it all worked out as agreed to by the parties.
Be careful.
You can’t get insurance in your name on this car because you do not own the car even though you are paying for it. The owner must maintain the insurance if they cannot afford the car payments, they probably can’t afford the insurance. Also, any insurance in YOUR name will NOT be acceptable to the loan company they will force place comprehensive collision coverage on the vehicle and increase the payments you are still NOT protected. This would only cover the loan balance does NOT include liability. Also, the vehicle owner is still liable for any accident you have with the car your insurance will not cover him.
So, what you need to do is actually BUY the car from him. You go to your local bank with the car’s information try to get a loan in your name. If you can, write up a bill of sale with the current owner, both sign it have it notarized and put on it the sale price also that the title will be signed over to you once it is received from the bank. Your bank will probably want a copy of this also a copy of your insurance policy on this vehicle showing them as the lienholder. You will need to go buy the policy (or add the car to your current policy) when you get the loan. Take the money, pay off the loan with the prior owners bank (do this yourself, that way you know it is done), the bank will then send the title to the old owner he will have to sign the title to you. Then, you take the title to your bank – they will want it because they have a loan on the car now.
That is the only way to do this be sure that you will end up with the car and that there shouldn’t be any insurance issues.
It is amazing to see all the different responses to this…
First of all, you cannot purchase a Non Owner policy. This type of policy would exclude coverage to a vehicle in your name, resident’s name, relative’s name, business’s name, or a vehicle to your frequent usage.
Second, yes you can get insurance for a vehicle that is not in your name. Generally a carrier prefers to have an insurable interest in the vehicle. But, is not required by ALL carriers. The preffered agencies like: AAA, Allstate, Farmers, etc will generally deny you. But, you need to speak to a Broker in your area. They will work with numerous different carriers, and chances are they will have some options for you.
FYI – When you do find one, the company will require that you either include the Registered Owner as a rated driver, or have you sign an exclusion form denying them coverage in the event they are driving the vehicle. Also, the registered owner is liable for any losses above your insurance limits. Therefore, you may want to look into higher limits of liability limits to minimize any exposure to the owner of the vehicle.
If you live in CA, I work with over 100 different programs, and over 25 of them will insure you for a vehicle that is not in your name. Let me know.
Hey I just recently had this same issue the car not being in your name is not a problem… I have 21st century insurance… I love them.
If you want some more information, I would check out…
Take care.