Can You Insure a Car You Don't Own?
When a person drives a car in the United States, he must be covered by some form of car insurance. This insurance protects the driver financially in the event that he gets involved in an accident. Generally, a person will buy his own car insurance for his own vehicle. However, in some cases, a person may be able to buy insurance for a car that he does not own, or at least purchase insurance that will coverage himself when he drives it.
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Car Insurance
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All car insurance is purchased from private insurers. The insurance provides payment to the individual in the event that he is found liable for an accident. A person must buy liability insurance, which covers him for damage or injury done to another person's car or body. However, he can also buy comprehensive and collision insurance, which covers damage done to his own vehicle. While most policies are issued for a person's own car, some companies will sell policies to drivers seeking to insure other people's cars.
Insurable Interest
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In order for a person to buy insurance that covers another person's car, he must be able to demonstrate that he has an "insurable interest" in the vehicle. This means that the person will be harmed in some way if the vehicle is damaged. If the person cannot demonstrate an insurable interest in a vehicle -- for example, if the person wished to purchase insurance for a vehicle driven by a stranger -- he would not be allowed to buy the policy.
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Umbrella Policies
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In some cases, a person can buy umbrella car insurance policies. Under an umbrella policy, the driver is covered no matter what vehicle he is driving. For example, if a person with umbrella coverage is driving a rental car, then the rental car will be covered by the policy. However, umbrella coverage typically only extends to liability insurance, not comprehensive.
Coverage for Other People
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If a person can demonstrate an insurable interest in another vehicle -- for example, if the vehicle is being driven by a family member -- then he likely can buy insurance for that vehicle. Alternately, the driver of the vehicle could purchase an insurance policy in his own name and another person could simply pay for the policy.
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