answersLogoWhite
Auto Insurance

Does an auto insurance policy have to be in the same name as the car loan?


Top Answer
User Avatar
Wiki User
2013-11-15 20:16:21
2013-11-15 20:16:21
Lien Holders Insurance Indemnity ClauseYes, Your finance contract (Loan) almost always requires that the borrower provide a Full Coverage Auto Insurance Policy on the vehicle being financed to protect the lien holders interest in the property until the loan has been satisfied. It's a matter of your finance contract. Failure of the borrower to provide the coverage required under the terms of the finance agreement puts the borrower in "Default" on the finance note subjecting the vehicle to repossession and other remedies at the lenders disposal. Include All DriversFor Full Coverage, The Insurance policy should be properly in the name of the vehicle owner with any additional drivers listed as additional insureds on the policy. When the vehicle is still under a finance note. The finance company will generally require that the buyer maintain full coverage auto insurance until the note is paid. As this is part of the finance agreement signed by the buyer, failure to do so can subject the vehicle to repossession by the finance company. Operators LiabilityFor liability only, any driver may obtain a liability policy for operation of the vehicle whether they are the owner or not, Since the Driver as well as the vehicle owner can both be held equally liable for any loss regardless of who is driving, most insurers will require you address the insured status of the owner as well. Owners LiabilityThe owner "Name on Title" is just as liable for an accident in the vehicle as the driver is, even though the owner may not have been driving when the accident occurred. If someone was kind enough to sign for you to buy a car, the least you can do is make sure you don't expose them to a lawsuit over a future accident you may have in the car. This is why many states have begun requiring the owner to have sufficient coverage regardless of whether the owner actially drives the car.

Related Questions

User Avatar

You can pay for insurance on an auto that is not yours...but the policy must be the titleholder's policy.

User Avatar

does the name on the insurance policy have to be the same as the title in anderson south carolina

User Avatar

A teen in Rhode Island should get their own auto insurance policy when they get a car in their name.

User Avatar

Answer 1: yes, my sister is borrowing my car and she her own insurance on it.Answer 2: You can always get insurance as an additional driver on another person's car insurance policy. Isn't that how children in the house are added to their parent's car insurance policy?

User Avatar

yes. if you're living together, his policy requires you to be on it.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.