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Yes of course, they are required to insure it in their name if they are buying the vehicle by financed note. The buyer is the new owner of the vehicle. All drivers are required to maintain financial Responsibility when operating a vehicle on public roads. The financiers interest is typically covered also by requiring the buyer list them as a lienholder on the policy. This requirement is generally built into the finance agreement

There are also separate business insurance product lines that will cover a lienholders interest in a financed vehicle. The financier trying to insure the vehicle on a standard personal auto policy is an attempt to circumvent the insurance laws and constitutes insurance fraud by failing to disclose the true nature of the the risk to the insurer.

Under finance law, the buyer is the legal owner of the vehicle even theough the note is not paid off with certain encumbrances denoted in the finance agreement. The financier is a lienholder in due course until such time as the finance note has been satisfied.

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Q: If you finance a car for someone can they insure it in their own name?
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Related questions

Can someone else insure a car if the loan is in your name?

Depending on the state you must at least cosign.

Is it possible to insure a car that doesn't belong to you?

If you insure it in the name of the person who owns the car, yes.

Can you insure someone else's financed car?

No. Insurance cannot be obtained on property which the policy holder has no vested interest or ability to control.

Is it possible for someone to finance a car in their name then once approved sign the bank loan over to you?


Can your car be in your mother's name and you insure it?

Yes you can.

Can someone insure your car if the owner doesn't have a license?

Very doubtful.

Can I insure a car in my name that I don't own?

Of course not

Can your mom insure your car and you register the car?

If her name is on the registration of the car and she drives it sometimes.

How do you insure a car that you own without having license?

Really the only way I see it is to get someone to insure the car in their name. Put you on the paper work as the owner but, you will be excluded from being a driver because, you have no license unless you want to take that chance and drive anyway.

Can i insure more than one car in my name?


Can you insure a car not titled in your name?

can you have insurance on a car if the title is not in your name? Generally, no. You don't have anything to insure (called insurable interest). The only time this is permitted is with spouses. The car's title may be in either name, but may be on the others insurance.

Is it illegal to insure someone else's car in their name and drive car in your name?

You really cannot have a policy issued without the insured person knowing it as they will have to sign the policy as it is a legal contract. If you sign their name you have committed a felony of forgery and this is illegal.