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  Peggy Claytor in Insurance | 4247 Reads
• 05/29/2025

You Can’t insure What You Don’t Own

You must have Insurable Interst to insure something

Our Worst fear is a denied claim!

Peggy Claytor

Have you ever wondered why insurance agents ask how your vehicle is titled or who the vehicle is registered to? There is a reason. You can’t insure what you don’t own or have an interest in.

For example: You have a child older than 25, not in your household anymore, purchasing a vehicle. You call to have this vehicle added to your policy. You hear, “I’m sorry, I cannot add this vehicle to your policy. I will need to start a policy in the child’s name.”

Why not? The vehicle is not titled or registered to you, nor do you have any interest in the vehicle.

DMV is looking for coverage on the vehicle in the child’s name, since it is registered in their name. The child will not have it. It is their vehicle, not yours. Your auto policy, not theirs. They would be a driver listed on your policy.

Another example: You want to add your boyfriend's/girlfriend's vehicle to your auto policy. Again, you hear, “I’m sorry, I cannot add this vehicle to your policy. They will need to start a policy in the their name.”

Why Not? If a claim happens, it may not be covered. A payment cannot be issued to someone other than the owner or lienholder. The vehicle is not titled or registered to you, nor do you have any interest in the vehicle.

So, we ask those questions to insure you properly and correctly. Not because we are trying to collect more premiums or make another sale. The more accurate we are, the better protected you are!