Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Auto Insurance Claim

While you can insure someone else’s vehicle there are some stipulations of which you need to be aware. If you are planning on driving someone else’s vehicle, then you need to make sure you are insured on it.

Usually insurance goes with the car, so the car owner’s insurance policy would extend to cover other drivers as well. However, there may be times when a driver is not covered by the owner’s insurance or the owner requests the driver to carry his own insurance for the car. If this is the case, then you will need to buy insurance for that car.

To learn the scenarios when you can buy car insurance for someone else’s vehicle then continue reading. Once you are finished with the article be sure to enter your zip code above to compare free insurance quotes!

Insurable Interest on Someone Else’s Vehicle

The only way to insure someone else’s vehicle is if you have the owner’s permission as well as an insurable interest in that vehicle. In order to purchase insurance for something such as property, the person buying the insurance must have some financial interest in it.

For example, if you loan your car to your best friend and ask him to get his own coverage, then he would be able to do so based on his interest in your property. If he is responsible for your car then he has financial interest in it and can purchase an insurance policy for it.

While having insurable interest in the property does allow you to obtain insurance, it does not make you the beneficiary of any claims payout. The insurance company may authorize the policy to be written, but the car owner must be listed on the policy. In the event of a claim, all benefits would be paid directly to the car owner, not the person who bought the policy.

Not all insurance companies will sell insurance policies to non owners without strong insurable interest. Some insurance companies, however, sell non-owner’s insurance policies, which may be a good alternative to insuring someone else’s vehicle. Non-owner’s policies are available for liability, medical, uninsured motorist, and underinsured motorist coverage.

Collision coverage and comprehensive coverage are not part of non-owner’s insurance policies. If you need collision or comprehensive then you need to find an insurance company who will sell you an insurable interest policy instead, as discussed above.

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Insuring Someone Else’s Vehicle for Liability

Liability is one of the most important types of auto insurance anyone can buy. If you are at fault in an accident and someone else is injured as a result of it, then liability coverage will pay for those damages up to the policy limits.

Liability will also pay for the other person’s car or any other property (such as landscaping or a fence) that was damaged in the accident. Liability coverage does not pay any benefit directly to the insured nor the driver at the time.

If you borrow someone else’s car, you need to have liability coverage. If you insure someone else’s vehicle for liability, then there is no need to list another party on the policy since there is no claim payout.

While liability insurance will help protect you financially against bodily injury and property damage for other people, it will not provide any reimbursement for damages incurred by you for the car you are driving. In order to have full coverage so that your financial responsibility is reduced, you need collision and comprehensive insurance on the car.

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Getting Full Coverage for Someone Else’s Vehicle

Since non-owner’s policies don’t usually cover collision and comprehensive, it is difficult to get full coverage for someone else’s vehicle. However, provided you are willing to pay for the insurance and list the car’s owner as the recipient of policy benefits, then you can find an insurance company that will work with you.

The reason you need to list the car owner on the policy is so that, if the car you are driving gets damaged, the car owner is the one who will receive the just compensation for his property. It is one of the reasons insurable interest is used for creating policies that are purchased by non owners.

Imagine if you insured your friend’s car and then totaled it. Without insurance regulations in place, you would be able to cash in on your insurance policy and walk away with the money while your friend would be left behind to suffer from his loss.

Before you insure someone else’s vehicle, decide on what type of coverage you need. You may need to try to buy full coverage for the other party’s vehicle or you may be perfectly okay with a limited non-owner’s car insurance policy. Either way, be sure the policy is written correctly and that the car owner’s name is recorded on the policy properly.

You can get free quotes from different carriers now to see what your options are just by entering your zip code in a car insurance quote tool. Start now!