In New Zealand, you generally cannot take out a standard car insurance policy on a vehicle you do not legally own. The person or entity listed on the car's registration certificate (the "registered owner") is typically the one who must arrange the insurance. The core principle is insurable interest; you must stand to suffer a financial loss if the car is damaged or stolen. Without ownership, proving this interest is very difficult for an insurance company to accept.
However, there are specific, limited exceptions to this rule. The most common scenario involves being the sole named driver on the policy while the owner (like a parent) is listed as the policyholder. Another situation is when you are the primary driver of a company car, where the business owns the vehicle but insures it with you as the main user.
If you need to drive a car you don't own, the correct path is for the registered owner to purchase the insurance policy and then add you as a named driver. This ensures you are covered when driving. It is crucial to be completely transparent with the insurer about who the owner is and who the regular drivers will be. Misrepresenting this information is considered non-disclosure and could void the policy, leaving you with no coverage in the event of a claim.
| Scenario | Can You Insure It? | Key Requirement / Rationale |
|---|
| Friend's/Family's Car | No, you cannot buy the policy. | The registered owner must hold the policy. They can add you as a named driver. |
| Sole Named Driver | Yes, but the owner is the policyholder. | Common for young drivers; the parent (owner) holds the policy with the child as the main driver. |
| Company Vehicle | No, individually. | The business entity owns and insures the vehicle. You are covered as an authorized employee. |
| Financed Car (Hire Purchase) | No, not directly. | The finance company usually requires comprehensive insurance, but they are the legal owner until the loan is paid. |
| Test Driving a Car for Sale | No. | The seller's existing insurance should cover potential buyers during a test drive (verify this beforehand). |
Attempting to insure a non-owned car without the owner's involvement is not a standard practice and will likely be rejected by insurers. Always work with the legal owner to ensure proper coverage is in place.
