Must the Car Insurance Policyholder Name Match the Vehicle Owner Name?
3 Answers
The policyholder and the insured of car insurance can be someone other than the vehicle owner. Moreover, the vehicle owner does not necessarily have to purchase the insurance themselves; they can authorize someone else to handle it. In other words, others can also purchase insurance for a vehicle not registered under their name. There are four essential types of car insurance to buy: 1. Compulsory Traffic Insurance (CTI): CTI is a mandatory insurance required by the state, without which the vehicle cannot be driven on the road. It primarily protects the rights of victims in traffic accidents (excluding the vehicle's occupants and the insured). Although CTI is relatively inexpensive, its coverage limits are limited, necessitating supplementary commercial car insurance. The three main types of commercial car insurance to buy are: 2. Third-Party Liability Insurance: Also known as "Third-Party Insurance" or "TPL," it mainly covers bodily injury and property damage to third parties in traffic accidents. Third-Party Liability Insurance supplements CTI, covering the shortfall after CTI payouts. Vehicle owners can flexibly choose coverage amounts based on their location. For example, in first-tier cities with many luxury cars, it's advisable to opt for coverage of 1 million yuan or more. 3. Vehicle Damage Insurance: This insurance covers the policyholder's own vehicle damage. Given that minor collisions are almost unavoidable while driving, if the other party is not fully at fault, some costs will inevitably need to be paid out of pocket. Additionally, in case of unexpected incidents like falling objects, Vehicle Damage Insurance can also cover the costs. Therefore, Vehicle Damage Insurance is practically a must-have, and the coverage amount should match the vehicle's value. 4. No-Deductible Insurance: Whether it's Third-Party Liability Insurance or Vehicle Damage Insurance, in the event of a traffic accident, unless the policyholder is not at fault, both types of insurance have a certain deductible rate, meaning a portion of the cost must be paid by the policyholder. Purchasing No-Deductible Insurance can eliminate this deductible rate, ensuring no out-of-pocket expenses.
I remember when I first bought my car, I purchased the insurance under a friend's name for convenience. But when a minor scratch occurred, the claims process became extremely troublesome. The insurance company requested proof of relationship documents, which almost caused delays. Honestly, the car insurance policyholder and the vehicle owner don't necessarily have to match exactly—there's no legal requirement. As long as you hold the insurance policy and have authorization, it's fine. Otherwise, you might need additional documentation when filing a claim. Now I've learned that keeping the names consistent is the safest approach. For example, I now buy insurance under my own name for my car, so no matter who's driving, any claim process goes smoothly. Additionally, if you frequently drive family members, it's best to discuss insurance details with your provider in advance to ensure all drivers are covered. In the long run, this saves a lot of hassle and time, avoiding potential complications if something happens on the road.
The car in our family has always been under my wife's name, but when I drove more frequently, I purchased an insurance policy under my name. At first, I didn't think much of it, but later, during a windy night, the car window was shattered, and the claims process dragged on for a long time because the insurance company had to verify the relationship between the car owner and the policyholder. This experience taught me that the name on the car insurance doesn't necessarily have to match the car owner's, but it's better to keep them consistent to avoid confusion. The core of an insurance policy is to protect the driver and the vehicle. If the names differ, you must ensure you can quickly prove ownership in case of an accident. I recommend that if family members share a car, it's more reliable to apply for insurance directly under the car owner's name. If you need to change drivers or lend the car, check the contract in advance to see if it allows others to drive. These small details in daily car use actually relate to safety, and taking a little extra time to clarify them can ensure smoother travels.
