Can I insure my car in someone else’s name?


It is not uncommon to find cases of people who insure their car in the name of a relative with more seniority in the insurance or with more years of experience behind the wheel and, therefore, with higher bonuses, to save on the cost of the policy. . However, you should know that it is not always possible.

The saying already goes: made the law, made the trap. And it is that when you compare the car insurance premium for an expert and good driver 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 are involved in the car insurance non-owner 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 takes out the insurance, who pays the premium, and, therefore, bears most of the obligations. On the other, there is the owner of the vehicle, who is the one that appears on the Circulation Permit, who must ensure the car, who collects the compensation that has to do with the total or partial loss of the same. Finally, there is the figure of the driver, who is the one who is going to drive the vehicle and can be the policyholder, the owner, or a different person.

What happens to those under 25?

Each insurance company has its regulations, although there is usually no problem 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 of age 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.

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 on the market designed for them. 

In this sense, think that if you are under 25 years of age, the fact that you are the policyholder also has its advantages, since you will be able to start accumulating bonuses for being a good driver and enjoy them in the future.

The same thing happens to those car owners who, in turn, are novice drivers. Due to their lack of experience behind 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, the Qualitas Auto company has an insurance option for these drivers, which includes roadside assistance and a replacement vehicle. Another insurance company that has a product aimed at this profile is Balumba.

When the policyholder is over 25 years old and has more than two years of driving experience, most insurers do not consider who owns the vehicle to be essential, even any person authorized by the policyholder who meets those requirements could drive it.

However, remember that any insurance contract is based on good faith. In fact, before taking out a policy, the insurance company will ask you a series of questions -especially to find out your driver profile-, which are the basis on which the insurer will calculate the risk it is going to assume and, therefore, on which the insurance premium will be calculated. And although in some cases it is not decisive, it is worth noting that you inform the company that an owner is a person and that the policyholder or the driver are going to be different people.

By Master James

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