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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The lowdown...

  • Most insurance companies will insist that the insurance information match the registration name
  • There are a few exceptions, but the company will then request explicit permission from the vehicle owner
  • The practice of using another address or name to obtain insurance can be considered fraud and may lead to denied claims

When car insurance companies are setting rates, they start by looking at location. A client’s location can help them determine the risk level for:

  • Theft
  • Vandalism
  • Natural disasters
  • Accidents
  • Fraud

All of this information is taken into account when setting the premium so the car insurance and registration must match.

If you are also looking for better auto insurance rates, start comparison shopping today by entering your ZIP code above!

It’s All About the Financial Interest


Insurance companies like knowing that the person insuring the car has a financial interest in the automobile.

When the owner of the car also drives it and pays for the insurance, the risk that it will be used in an improper manner is minimized.

Some companies will insist that the name on the registration is a match with the name of the insured.

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Beware Vicarious Liability

Under the law, the owner of a car can be held at fault for an accident even if they were not driving.

In most states, the owner is presumed to be the person named on the registration.

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As the owner, you may face an increased risk if you:

  • Ask your employee to use your car for business purposes
  • Know that a driver is incompetent, unlicensed, or reckless and still allow him or her to drive it
  • Knowingly loan out a car that it defective or otherwise unsafe to drive

All these possible risks are important to remember when allowing family members to borrow a car. Even if they’re paying for the insurance, an accident can still come back on you in certain circumstances.

States and Insurance Companies Have Different Standards


It’s also important to note that many states and insurance companies have differing standards. While it may be perfectly legal to insure someone else’s car according to the state, the insurance companies can refuse to write policies under these circumstances.

Even if the company initially insures the car, they may use this as a reason to deny payment on future claims, especially if the company believes that there has been an attempt at committing fraud.

Although your state may be agreeable to having two different names attached to a car, the insurance company is ultimately the one that can make this decision.

If you want to keep a car in your name but have your adult child get his or her own insurance for it, then be up front with your company. They can determine if this will fit with their underwriting parameters and if it will result in any premium increases.

Insurance Companies Expect Information About All Drivers


Insurance companies require information on other drivers that are listed on your policy and even living in the house. They can charge you more if anyone on your insurance plan has a troubling driving record.

In addition to asking about people who routinely drive the car, they may also request information regarding other drivers in the household. The insurance company needs that information because those individuals have access to your vehicle and may be allowed to drive it at times.

If you were going to have someone else insure the car that you own to keep the rates down, then this may not work. As the registered owner of the car, you’ll have access to it at any time.

Therefore, the insurance company will also want to take a look at your driving record and will set rates accordingly.

However, there are still ways to save when someone who has access to the car has a difficult driving history. You can save by:

  • Having the other driver excluded from cars that he or she is never allowed to drive
  • Looking to multi-policy or multi-vehicle discounts
  • Shopping around for better rates

Before you agree to insure a car in someone else’s name, talk to your insurance company to see how this will be handled.

As the owner of the car, you can also be liable for someone else’s mistakes on the road, so you may want to reconsider the decision.

In any event, the company can refuse to cover claims if they believe that you or the other party has attempted to commit fraud.

A better way to save on insurance premiums is to shop around for better rates so that the owner of the car can also carry the insurance.

Start comparison shopping today for the best auto insurance rates by entering your ZIP code below!