Every car has a title, and the title states the names of the people who own the car. If you own the vehicle, the title will have your name on it. Typically, you would be the person insuring the car, but have you wondered if someone else can insure it instead? If so, here are a few things to know.

Why You Might Want to Do This

Suppose you are divorced and have a child with your ex. If you want to buy your child a car when he or she begins driving but have your ex pay for the insurance, you might want your ex to buy the policy. Another example is if your senior parent purchased a car and cannot drive anymore. If he or she lets you drive the car, your parent may require that you put the insurance in your name.

The Challenges of Putting Insurance in Someone Else's Name

Some states may not allow you to insure a car on your policy if it belongs to someone else. Insuring someone else's car is a risk to the insurance company. The person who owns the car probably cares a lot for the car, which means that he or she will use caution with the car. If someone else insures the car and drives it, he or she may have no financial stake in the vehicle. As a result, this person might not be as cautious as he or she should be with it. Many insurance companies will not insure another person's car for these reasons.

The other challenge to consider is the lienholder on the vehicle. If you have a car loan, your lienholder may not allow you to put the vehicle on someone else's insurance policy. They may require that you keep the car covered on a policy that has your name on it.

What You Can Do

If you want to buy a car and insure it on someone else's policy, you will need to ask that person to get coverage. If he or she cannot find coverage for this situation, then you will need to contact an insurance company and get coverage for the vehicle.

This situation is a tricky one, but you can find out all your options by contacting an insurance agent. An agent can explain what you can do to find a solution for this problem and can also give you auto insurance quotes.