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Can I insure a vehicle that is not in my name?

Whether or not you can insure a vehicle that is not in your name is dependent upon the guidelines that govern your insurance provider's policies. Each insurance company has their own rules, and it is your responsibility to discover what your insurance company's procedures and policies are. There are insurers who will allow you to take out a policy on a vehicle that is not registered in your name. A good idea is to perform your usual price comparison quote and once you have selected a company with which to do business, contact them to inquire further about their policies.  

If you are reading this as a fluke, you may be wondering why anyone would want to insure such a vehicle to begin with. Typically people only insure their own vehicles, yes, but that isn't always the case. An example of this would be if an individual (let's call her Martha) were to purchase a car from a private seller (let's call him Pete). If Pete still has an outstanding loan on the car that will be paid off when Martha gives him the money for the car, it may take him awhile to obtain the title of the vehicle. This is because the lending institution has to release the lien hold on the vehicle. It may take up to thirty days for him to receive that in the mail. If Martha pays for the car though, she will likely want to drive it before it is legally hers - in other words, before she has had the title transferred to her name. Thus Martha will have to insure Pete's car if she wants to drive it. Though the vehicle is not in her name, she will still need to get a policy to cover herself while driving the vehicle. There are a variety of similar situations that may crop up, but this one is relatively common.

When you take out an insurance policy on a vehicle you do not own, there are a few considerations to keep in mind. The registered owner of the vehicle will either have to be included in your policy or else be excluded entirely from the coverage plan. When you exclude a driver from your policy, you are signing an agreement between you and your insurance company that says driver will not be covered by your policy under any circumstances unless you, personally, add him or her as a driver. While insuring a vehicle that is not registered to you is not impossible, it can be difficult at times, depending on the provider you are working with. Explain your situation to your insurance provider and see what they can do. By using online price comparison techniques, you can significantly increase your chances of finding a carrier who will be willing to work with you. You will also be able to find much better deals on coverage by searching online, thus saving you money when you may need it most.


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