Can You Buy Insurance For A Car You Don't Own? 
In our business we get a request like this from time to time . It always raises a big red flag . It 's a claim nightmare waiting to happen . The question I always ask but is rarely answered truthfully is `` why would you want to insure something you do n't own ? '' . The truth is usually that someone will let them use a car as long as they agree to insure it . Or , someone will insure the car as if they own it and just not tell us they do n't own it . That 's hwy our CSRs will ask to whom the car is titled . You can not insure something you do n't own because you do n't have a loss if it 's damaged or stolen . That 's insurance 101 - insurable interest . If the car is damaged , the insurance company will only pay the person to whom the car is titled . If you lie on the application and say that the car is titled to you when it 's not , you may actually get paid . However , if the insurance company does just a little research you could find yourself in a world of trouble . Here 's the correct way to handle this situation . The insurance must be written in the name of the titled owner of the car . The person who is driving the car is listed as the primary driver . If the agreement is that the driver is the person who actually pays the insurance , that 's fine , the insurance company is n't concerned with that . But be aware that anything that happens with that car will impact the owner . A cleaner way to do this is to actually give or sell the car to the person who will be driving it and transfer the title . The insurance can then be written properly and there will be no liability issued to speak of . Be smart , find an agent you can trust . They 'll tell you legal way to handle this . Do it the right way and avoid a nightmare at claim time . 