No, you generally cannot take out an auto insurance policy on a car that is registered and titled solely in someone else's name. Insurance companies require the policyholder to have what's called an "insurable interest" in the vehicle. This means you would suffer a financial loss if the car were damaged or destroyed. If you don't own the car, you lack this legal and financial stake. The person whose name is on the title is the legal owner and is ultimately responsible for insuring it.
There are, however, common exceptions where you can be added to a policy for a car you don't own. The most frequent scenario is if you are a family member living in the same household as the owner. For example, a parent can insure a car titled in their name even if their teenage child is the primary driver. Another situation is if you are a co-owner of the vehicle; your name might not be first on the title, but your ownership stake grants you insurable interest.
It's crucial to understand the difference between being the policyholder and a listed driver. You can always be added as a driver to the owner's existing policy. Most policies include coverage for "permissive use," meaning occasional drivers (like a friend borrowing your car) are covered. However, if you regularly drive a car owned by someone else (like a roommate), the owner should add you as a listed driver to their policy to avoid coverage gaps. Attempting to insure a car you don't own can be seen as insurance fraud, leading to denied claims or policy cancellation.
| Scenario | Can You Insure It? | Key Consideration |
|---|
| Car is solely owned by a friend | No | You lack insurable interest. The friend must insure it. |
| You are the primary driver of your parent's car | No (but you can be added) | The parent, as the owner, must hold the policy and add you as a driver. |
| You co-signed a loan for the car | Possibly | If your name is also on the title, you have an insurable interest. |
| You are married, and the car is in your spouse's name | Typically Yes | Most insurers consider spouses in the same household to have shared insurable interest. |
| You are borrowing a car for a short trip | No action needed | The owner's policy typically covers permissive use by occasional drivers. |
