There are plenty of reasons why someone might want to insure a vehicle they don’t own in Hershey, PA. It’s common when parents or family members buy a car for their loved ones. Maybe you’re giving a friend a loaner for a few months. Regardless, insurance in these cases can get tricky. That’s especially true if the registration doesn’t match the insurance. Options Insurance Agency is here with a little advice to help you understand if you can insure a vehicle that isn’t registered to you.

Mostly No

In general, the insurers want to see the name on the registration match the name on the insurance policy. In fact, some states require this by law. The philosophy behind it is that the owner of a vehicle has a stronger personal interest in caring for the car, and this reduces risk to the insurance provider. If the state allows (laws change over time), and the insurance company is on board, you can potentially overcome this by demonstrating an insurable interest in the car. How you do that will be up to the insurance company.

Do This Instead

There are two easier ways to insure a car that isn’t in your name (or vise versa). You can update the registration to have both names. Once that happens, only one of the two names is required to be on the policy, and everything runs smoothly. It can be a little costly to renew a registration early to do this, but it’s better than being uninsured.

The other option is to pay for insurance in someone else’s name. There are no requirements at all on who pays the bill. You only need to be sure that the person who drives the car is named somewhere in the policy. This usually isn’t a big deal. There is one word of warning. If you think it at all necessary, you can write a legally binding contract to make sure the initial arrangement is honored by both parties.

Options Insurance Agency has experts available to anyone in Hershey, PA. You can ask all of your questions and get reliable answers.

Having the right coverage on your car is a necessity that you should take very seriously. Having the right coverage can be difficult, however, if you are not aware of what type of coverage you need or what level of coverage you need. For those in the Hershey, PA area, the agents with Options Insurance Agency can help you find the coverage that works for you. 

There are a few different factors that determine the overall cost of your monthly car insurance premiums. The first is the value of the car. This affects cost based on the fact that a more expensive car is going to cost more to replace and therefore needs more coverage. More expensive cars are also more likely to have loans out on them which means that they need to be covered in full. Another factor that affects cost is the age of the driver. Those that are over the age of 25 are going to get a lower rate while those over the age of 50 are likely to get an even bigger discount. Still, another factor that affects the cost is the amount of coverage. When you have full coverage you can expect to pay more than when you have only liability coverage. 

These are not the only factors that affect the overall cost of the insurance policy you choose. Marital status, college degrees, owning a home, children, and more are all going to affect the overall cost of your policy. On top of all of that, your driving record is also going to affect cost. It is important to talk with an agent to find out how much your premium is going to be and to find the best rate possible. For those in the Hershey, PA area, the agents with Options Insurance Agency can help tailor your perfect policy.