Can a Son Insure a Car His Father Owns?

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A son can insure his father's car, but only with a select few insurance companies. Most insurers do not allow their customers to purchase policies for vehicles they do not own. Insuring your father's car may be a tedious affair, depending on the insurer with whom you are working and the state regulations governing your area. Insurance companies have the final say when it comes to selling policies to a customer for a vehicle in another person's name. The decision to sell or decline to sell a policy to a non-owner is dependent on the company-specific guidelines.

Insurable Interest

  • The main reason most insurers decline to sell policies to non-owners of vehicles is the lack of "insurable interest." According to insurance law, insurers can only sell coverage to customers who have demonstrable interest in the object being insured. This law protects the insurance industry from fraudulent activities that are geared toward profit. Without the law of insurable interest, a customer could purchase a policy on a neighbor's car solely for the purpose of receiving proceeds from the insurance company if the neighbor gets into an accident.

Shopping

  • When considering purchasing an auto insurance policy for a car that is not in your name, but belongs to a family member such as your father or teenage daughter, shop around as if the car were your own. You should first compare quotes from several insurers and then approach each provider to inquire about any policies that are available to non-owners. Keep in mind that most insurance companies will turn you down, and the ones that entertain your request will ask for supporting documents for proof or verification purposes. As explained earlier, you will have to demonstrate insurable interest on the car you wish to insure.

Required Documents

  • A company that allows you to buy coverage for your father's car will ask for documents that verify your reason for purchasing the insurance is legitimate, and that you have insurable interest. The most important thing, from the insurer's perspective, is that the name of the car owner be added to the policy. This demonstrates to the insurer that the car owner is aware that another individual is buying coverage for the car. Along with having the car owner's name appear on the policy, the insurer will usually ask for supporting documents. Depending on the guidelines of the particular insurer and your situation, you may provide one of several different documents for verification purposes. If you and your father reside in the same address, you can provide proof of that, or you can show that you pay the utility bills for your father's house. You may also show that you have the same last names.

Forms of Insurance

  • Having liability protection for a vehicle is required in most states. Depending on the state, other forms of insurance may also be required, such as protection for under-insured or uninsured motorists, or protection against personal injury and property damage. If you are unable to purchase a policy for your father's car, consider including yourself as one of the owners of the vehicle. As a co-owner, you will be able to buy any form of coverage from all insurance companies.

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References

  • Photo Credit Shiny car with silver paint. Water drops on the hood. Car lamp. image by Christopher Meder from Fotolia.com
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