In Las Cruces, New Mexico you may find people wondering whether or not they can insure a car without having their name on the registration. Maybe it is your parents car and they have allowed you to drive it while at college. It seems only logical that you should be able to buy a local policy on it while in school. The problem comes down to what is called insurable interest.
What is Insurable Interest?
Insurable interest is what auto insurance companies look at before ever deciding to write a policy for a customer. The owner of the car must be able to prove that it is actually their car. In order to prove that the car is actually under their ownership they must provide proof. The proof comes by having your name on the title or registration of the car.
When a person buys a car with a loan they will soon find that the name of the finance company appears on the title as an interest of the car. They have a financial interest, meaning that they want to make sure they can get their money if the car is ever sold. The buyer’s name will appear as well since they are the party who is driving the car. As the owner they are the only party that can insure the car without having to worry about insurance fraud.
If you live in Albuquerque or Rio Rancho, New Mexico, then you may need to know if you can insure a car. Call us today as your independent agent and we can help you determine if your car is really insurable under your name or not. Or, should you have a general question about insurance we can answer that too.