No, you generally cannot put a car insurance policy solely in someone else's name if you are the primary owner and driver of the vehicle. The person whose name is on the policy must be the one who has an insurable interest in the car, meaning they would suffer a financial loss if the vehicle were damaged or stolen. The policyholder is almost always the vehicle's registered owner.
Attempting to do this can be considered insurance misrepresentation or fraud. Insurers base premiums on the primary driver's risk profile, including their driving history, age, and location. Placing the policy under a different person's name to get a lower rate, a practice known as fronting, is illegal and can result in denied claims, policy cancellation, and difficulty obtaining insurance in the future.
The only legitimate scenario is when the policyholder is not the primary driver but has a valid insurable interest. Common examples include:
- A parent who owns a car and purchases the policy for their teenage child who is the main driver.
- A company that owns a fleet of vehicles and insures them for its employees.
| Scenario | Policyholder | Primary Driver | Legitimate? | Key Consideration |
|---|
| You own and drive the car daily. | Your friend with a clean record | You | No (Fronting) | High risk of claim denial and policy cancellation. |
| You own the car, your teen drives it. | You (the parent) | Your teenager | Yes | Must list the teen as a driver on the policy. |
| Your elderly parent lives with you and drives your car. | You | Your parent | Yes | Must list the parent as an additional driver on your policy. |
| You co-own the car with your spouse. | Either spouse or both | Either spouse | Yes | Both drivers should be listed on the policy. |
| A company owns a work truck. | The company | An employee | Yes | Policy is commercial, covering any authorized driver. |
If someone else will be the main driver, the correct approach is to add them as the primary driver on your policy or have them take out their own policy if they are the vehicle's owner. Always be transparent with your insurer to ensure you are properly covered.
