You want to purchase an auto insurance policy, but you don’t know if the name on the title will affect your car insurance rates. Well, in this article is everything you need to know. There are various factors that may affect your car insurance rates.
They include the driver’s age, location, insurer, coverage options, and more.
Will My Insurance Rates Go Up if the Car Title is in Someone Else’s Name?
The name on the title will not affect your auto insurance rates if the car owner is your family member and you are already listed in the policy. Who the vehicle is registered under won’t impact the rate of the insurance case. However, there are different cases whereby your insurance rates may be affected.
Ensure that you review your policy very well and know what it entails. Speak to your insurer to know when your insurance rate will go up after a claim. Just like I have mentioned above, there are factors that will affect your car insurance rates. And they include location, coverage options, driving record, driver’s age, and type of vehicle.
However, keep in mind that the name on the vehicle can have implications for insurance liability and coverage. Below are some of the key points you need to consider:
• Car ownership and insurance
When you sign up for a car insurance policy, you agree to insure your personal vehicles. The name insured on this policy is the individual listed on the declaration page. And this includes the spouse if they live in the same house. It is important that the name on the car title and registration match the policyholder name to ensure proper coverage.
• Insurable interest
To insure a car on your personal auto policy, you need to have an insurable interest in the vehicle. Meaning you need to be the car owner or have a contractual obligation to insure it, such as in the case of a lease agreement or auto rental. You cannot insure a car if you don’t have a legal obligation to indemnify or a financial interest in.
• Listing owned cars
It is very important that you declare and list all the cars you own on your personal auto policy. To ensure that they are insured for physical or liability damage. If you did not list the vehicle on your policy, it may not be covered by the insurance.
• Adding other drivers to the policy
If another person, such as your spouse or child, will be driving your car, it is very important that you let the insurer know and add them to your policy as a listed driver. This makes sure that they are covered under your policy while driving the car.
• Transferring ownership
If you transfer ownership of a car to another person, it is very crucial to update the title and registration. If you remain the owner of a car that is not insured in your policy, you could get sued. And may not be covered by your own or another’s insurance policy for the car.
Can I Insure a Car That Is Not in My Name?
Just like I have mentioned above, no, you won’t be able to insure a car that is not in your name. In certain cases, only someone who is listed on the car registration can get an insurance policy for it. However, there may be an exception made if you provide an “Insurable interest” proof on the vehicle.
Having an insurable interest on the car means you have a financial stake in it. And you would have a financial impact from the loss of the car. If you believe that you have a legal need for someone else’s vehicle, you can prove that you have insurable interest to an insurance company to get them to cover you.
If you can’t prove that you have insurable interest in the car you are driving, you could add your name to the car title or have the title transferred to you. Purchase non-owner insurance so that you can have liability coverage in case you are at fault in an accident.
Is it Possible For the Name on a Car Title to be Different From the Registration?
Yes, it is very possible for the name on the registration to be different from the car title. The car title shows the legal owner of the vehicle, while the registration proves that the vehicle is registered with the state.
And it can be driven legally on public roads. If the car is leased or has multiple owners, it is possible for the name on the car title to be very different from the registration.