No-Title Auto Insurance (2024)

Although many people think they need their name on it, you can insure a car without a title. You can purchase a car insurance policy if you can prove insurable interest.

However, there are situations where car insurance companies won’t sell you a policy. Generally speaking, if you don’t have insurable interest in the vehicle or a valid driver’s license, you can’t purchase car insurance to drive someone else’s car.

Read on to learn more about buying car insurance without a title. Then, compare rates with as many companies as possible to find the most affordable coverage.

Can you get car insurance without a title?

You can buy insurance covering you in someone else’s car if you have a valid driver’s license. Most states have minimum car insurance requirements you must meet before you can drive, so people who frequently borrow someone else’s vehicle need coverage.

Insurance companies don’t ask for the car’s title before selling you car insurance. A prime example is when you purchase a new car — you need immediate coverage, but you won’t have the title.

Rather than titles, car insurance companies look for something called insurable interest. Insurable interest simply means you have a financial incentive to keep the car in good shape.

To understand insurable interest, consider the example of buying a new car again. Many dealerships won’t finalize the sale of your vehicle unless you have proof of insurance. You won’t have the title, but an insurance company will sell you a policy because you have a reason to avoid damaging your new car.

Most insurance companies will let you buy a policy if you can prove that you have an insurable interest in the vehicle.

Are there times when you might need to buy insurance when you don’t have the title?

While car owners are often the ones who purchase insurance, there are plenty of occasions when you might need coverage for a car you don’t own, listed below:

• You’re leasing your vehicle. When you lease a vehicle, the title stays with the company. Most car leases require full coverage, so you can buy insurance without being a titleholder.
• You have a car loan. Until you pay your loan off, the company with the loan on your car owns the title. Once the loan gets paid off, the lender transfers the title to you.
• Inheritance. Most insurance companies sell policies for cars you inherit, although you’ll have about 30 days to provide proof of ownership.
• You need a title loan. Title loans provide cash using your title as collateral. Until you repay your loan, the lender owns your title. If you need to file a claim before you pay back the loan, your company will pay the lender instead of you.
• Extended stays with someone else. People often move back home to take care of a loved one. You’ll need insurance if you want to use their car while there.

These are only a few examples of when you might need car insurance on a vehicle you don’t own. Insurance companies know there are many situations where people need coverage without having the title to the car they plan on driving. So, it’s usually not difficult to find coverage.

Remember that you don’t need insurance when you borrow someone’s car once. Insurance follows the car, not the driver, so the car owner’s coverage extends to you when you occasionally borrow their vehicle.

Are there times when a company will let you buy insurance on a car you don’t own?

As you saw above, there are plenty of situations where buying car insurance without having the title is possible. However, you still must meet certain criteria before a company sells you a policy.

The basic principle behind the criteria for car insurance is that the company must believe you’re going to take care of the car. So companies won’t pay someone who might not spend the insurance money on fixing the car.

For that reason, insurance companies will usually sell a policy in the following situations:

• You demonstrate insurable interest
• The car owner lives with you
• You purchase a non-owner policy
• You add the titleholder to the policy, or they add you to theirs

If your eligibility for an insurance policy on a car you don’t own is questionable, you can always plead your case to a representative. They’ll know if their company can sell you a policy no matter your situation.

However, there are times when you can’t buy a policy, no matter what. For example, if you can’t prove insurable interest, don’t have a valid driver’s license, or the owner doesn’t permit you to insure their car, you can’t buy insurance.

How do you insure a car when you don’t have the title?

When you’re ready to buy coverage for a car you don’t own, there are a few methods to get the coverage you need, including:

• Ask to be added to an existing policy. You might be able to join the titleholder’s policy, especially if you live together. Some insurance companies won’t let you join the policy if you don’t live with the owner.
• Live together. Roommates and relatives often share cars and sometimes rely on them daily. If you live with the car owner, getting added to the car’s policy is simple.
• Add the owner to your policy. You’ll need to submit proof that the owner gives permission for you to insure their car, but most companies consider this as proof of insurable interest. Your rates will likely be higher if you choose this method.

When this doesn’t work, you might have to look at alternative methods of securing coverage. Consider the following:

• Ask to join the title. Most states allow car owners to add co-owners to the title. If your name is on the title, you’re legally its owner and can buy as much insurance as you’d like.
• Transfer the title. If the car owner doesn’t plan on using their car, ask if they’ll transfer the title to you. You’ll have to pay a transfer fee, but being the sole owner of a car makes getting insurance easy.
• Consider alternative transportation. If you simply cannot get a car insured in your name, you might have to find another way to get around, including buses, trains, taxis, or rideshare services like Lyft or Uber.

No matter how hard it is to get insurance on a car you don’t have the title for, you should never drive a vehicle without insurance. You’ll face fines, legal troubles, license suspension, and SR-22 insurance if caught driving without insurance. With a little research, you can find cheap SR-22 auto insurance if you need it.

Find the Best Insurance for Your Situation Today

Now that you know you can get car insurance without a title, your next step is to consider how much coverage you need. From state minimum insurance requirements to fully comprehensive car insurance coveragage, you can find a policy to fit your needs and budget.

Before you get insurance without a title, research your coverage options. Choosing the first company you get a quote from will probably cost you money. Get quotes from as many companies as possible to find the best policy for you.