Can you insure a car you don’t own? It is not strange to find cases of people who insure their car on behalf of a relative with more seniority in the insurance or with more years of experience at the wheel and, therefore, with higher bonuses, with the aim of saving on the cost of the policy. However, you should know that it is not always possible. This article will try to answer important things related to the possibility of someone insuring a car that is not theirs. If you are curious then keep reading!
The saying goes: the law made, the trap made. Every law made has loopholes for “affected people” to violate it and thus they will fall into “lawlessness”. And it is that when the premium of car insurance for an expert and good driver is compared with that of a person who has never had a policy, the difference is remarkable. However, the first thing you should know is that three different figures intervene in the car insurance contract, with different obligations and rights and that they do not have to be the same person.
On the one hand, there is the policyholder, who is the person who contracts the insurance, who pays the premium and, therefore, on whom most of the obligations fall. On the other, there is the owner of the vehicle, who is the one that appears on the Vehicle Permit, who has the obligation to insure the car, who collects the compensation that has to do with the total or partial loss of it. Finally, there is the figure of the driver, who is the one who is going to drive the vehicle and may coincide with the policyholder, the owner or be a different person.
What about those under 25 years of age?
Each insurance company has its own regulations, although there is usually no problem in being the policyholder or the regular driver of a car owned by someone else. However, this statement has an exception; the one that occurs when the insured vehicle is owned by a person under 25 years of age. If you do not have a driving license, the insurer may require a document specifying that the young driver will not drive the vehicle. If the owner of the car is under 25 years old and has a driving license, the companies usually force the young driver to be the policyholder, without even having the possibility of being the second driver. Each region may have different insurance regulations, for example if you want to know the insurance regulations in the Long Island area, you should read these car insurance quotes in Long Island.
The objective of these practices is to prevent the fraud that can occur in this group, whose policies have significantly higher prices than those of other drivers. However, there are also companies that, thinking about these difficulties, have launched products designed for them. In this sense, think that if you are under 25 years old, the fact that you are the policyholder also has its advantages, since you can start accumulating bonuses for good drivers and enjoy them in the future.
The same happens to those car owners who, in turn, are novice drivers. Due to their lack of experience at the wheel, they are also forced to pay higher prices for their car insurance and, in addition, in the case of owning a vehicle, the insurance must be in their name. However, some companies have an insurance option for these drivers, which includes roadside assistance and a replacement vehicle.