re: Vehicle insurance question involving accident

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The primary driver of the vehicle has an insurable interest in the vehicle if they take care of the car.

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No
The primary driver, if not the titled owner, does not have an insurable interest in that car. If the driver totals the car, he or she is not able to collect the claim check. Only the titled owner can.

I train insurance agents in this very thing.

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For instance if you buy your 18 year old a car and title it in your name they can get insurance in their name only.

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Once again, NO. They can be named as an operator or listed driver but if the car does not belong to them, they can not be the policy owner.

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Another example is spouses. shite tons of people have joint titles, but only one spouse on the insurance. From what you are saying they can’t get insurance and both would have to be named insureds on the policy.

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That’s the opposite of what I said. A spouse CAN be a policy owner in most states even if they are not the registered owner of the vehicle. In fact, even if one spouse is the registered owner, both spouses should be named as policy owners because they are married. This is the rule in most states.

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Another example is long term loaners (over 30 days by pretty much every carrier). You can insure the loaner in your name even though it isn’t titled in your name.

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Dude, where the hell are you getting your information?

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You also see it all the time with deaths. Grandma died and left the car to the grandson. The title is in grandmas name and was never perfected. Grandson has the insurance in his name. According to you that’s impossible - again it is possible and happens every day.

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Totally different situation. Once that grandma dies, if she left the car to the grandson then he does have an insurable interest in it so that’s fine but the title should be changed to his name as soon as everything is complete with succession.


I can’t buy a life insurance policy insuring your life because I have no idea who you are. I have zero insurable interest in you. I don’t suffer financially if you die. Same thing with your vehicle. You could list me as a driver on your policy all you want but you’re the registered owner of that car so if it gets totaled, YOU are owed that payment, not me.


I think you’re confusing listed drivers/operators with named insureds.