Can You Insure A Car You Don’T Own?

In general, it is possible to insure a car that you do not own, but there are certain conditions that must be met. Car insurance policies are designed to cover the vehicle itself, as well as the legal liability of the driver in case of an accident. Therefore, the person who purchases the insurance policy must have an insurable interest in the vehicle, which means that they stand to suffer a financial loss if the vehicle is damaged or destroyed.

It is important to note that the owner of the vehicle must also have a valid car insurance policy in place to cover the vehicle itself. In some cases, the owner's insurance policy may also provide coverage for drivers who have permission to use the vehicle, but this may vary depending on the terms of the policy. As per the Motor Vehicle Act, of 1988, driving a non-insured car in India is illegal. It is essential for every car on Indian roads to have a valid third-party car insurance policy.