State Farm does not typically allow you to insure a car that’s not in your name.
State Farm does, however, offer non-owner car insurance, which allows you to buy liability coverage even if you don’t own a vehicle.
Keep reading to find out everything you need to know about State Farm’s non-owner car insurance, how it works, and whether or not it’s the right choice for you.
Key Takeaways:
State Farm offers non-owner car insurance, which allows you to buy insurance even if you don’t own a vehicle. State Farm’s non-owner car insurance works in a similar way to standard insurance. It provides liability protection, covering damage you cause to other vehicles and people as you drive. However, non-owner car insurance does not replace the vehicle’s existing car insurance, nor does it include collision or comprehensive coverage. Instead, it allows you to carry your own liability insurance when driving a friend’s vehicle, a rental car, or someone else’s vehicle. In fact, non-owner car insurance is not designed to cover any specific vehicle at all. It functions as secondary coverage. The vehicle still needs primary insurance coverage. In other words, non-owner car insurance follows you and not the vehicle. It’s ideal for people who occasionally drive a friend’s car or a rental car, but it’s not ideal for those who regularly drive a specific vehicle.
State Farm, like most insurers, requires you to have an insurable interest in a vehicle before buying insurance for that vehicle. If you’re not the owner of a vehicle, then you may not have insurable interest. You may not lose money if you crash that vehicle, for example, which means you can’t buy insurance for the vehicle. Being the owner of a vehicle qualifies as an insurable interest. If you don’t own a vehicle, however, then you may struggle to prove insurable interest. State Farm may require you to prove you have a stake in the vehicle. Without your name on the registration, this can be difficult to prove. Some states prevent you from insuring a car that’s not in your name even if you do have insurable interest. Even if State Farm allows you to insure a vehicle that’s not in your name, state insurance laws could prevent you from buying the policy.
Most states and insurers do not allow you to insure a car that’s not in your name. However, there are ways around this issue – like by adding the car owner to your insurance policy, transferring the car registration, or adding yourself to the car registration. Here are some of the ways State Farm and other companies could insure a car that’s not in your name: Ask the Car Owner to Add You to Their Insurance Policy: Generally, the best way to insure a vehicle that’s not in your name is to ask the vehicle owner to add you to the insurance policy. You can list yourself as the primary driver of the vehicle even though you’re not the owner, for example, and drive the vehicle legally while remaining fully covered. Ask the vehicle owner to add you to their insurance party and explain the situation to State Farm. State Farm needs to know who the primary driver of the vehicle is to ensure a smooth claim process. Add the Car Owner to your Insurance Policy: You could contact State Farm and add the vehicle owner to your insurance policy as an additional interest. If you’re able to add the vehicle owner, then you may be able to add the vehicle to your insurance policy even though the vehicle owner is not the primary driver. However, State Farm may require you to prove you have a financial stake in the person’s vehicle to activate the policy. Transfer the Car Registration: Alternatively, you can simply transfer the car registration to yourself. The car owner can sell the vehicle to you, allowing you to buy insurance for the car as you normally would. Get a Co-Title: Some states allow you to use co-titles, giving a vehicle multiple owners. You can use a co-title to add yourself as an owner of the vehicle, then insure the vehicle in your name. Typically, your vehicle needs to be paid off to qualify for a co-title. Having a co-title could also increase insurance premiums.
To qualify for non-owner car insurance, you need to have an active driver’s license. You also need to not already own a vehicle.
In most other situations, you’re better off getting listed on the owner’s insurance policy. If you regularly drive a friend’s vehicle, for example, or are the primary driver on a parent’s vehicle, then you should be listed on the insurance policy.
Non-owner car insurance follows you – not the vehicle. It also acts as secondary coverage. If you’re in an accident, then the car’s primary insurance (say, the owner’s insurance policy) is used first. Then, once that policy exhausts its limits, your non-owner car insurance (the secondary insurance) covers any remaining liability.
State Farm, like most insurers, does not generally allow you to insure a vehicle that’s not in your name (unless you can prove insurable interest).
However, you can buy non-owner car insurance, which lets you buy car insurance even if you don’t own a vehicle. It doesn’t cover a specific vehicle; instead, it’s ideal for those who occasionally rent cars or borrow someone else’s car.
The best option is to have the owner list you on their insurance policy. Alternatively, you can co-title the vehicle, transfer the registration, or add the car owner to your insurance policy.
Contact State Farm to determine the best option for your situation.
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.