Certainly having an equal share on things always comes with its perks and it is the same here. Having both names on a schedule of coverage or deed may eliminate the disputes over who has what too. However, it may come with its problems like shared liability in the eyes of the laws. Assuming this is the route you like to take, can unmarried partners have both names on an automobile insurance policy? This post will look at this question and try to determine who can have it jointly and what conditions must be met before this can be achieved.
Indisputable Interest on Vehicles
The way automobile ownership is set up can determine the coverage requirements or choices in most states. As a general rule, you need to have a reason to take a policy on something or someone’s life like facing financial loss if anything happens to the item or person. You cannot just go around and arrange coverage for things that have nothing to do with you. If it is allowed, people would probably go around and damage them to collect compensation. We certainly cannot create an environment for moral hazard to thrive.
The key here is unquestionable interest. The answer is “yes” you can buy joint auto insurance for unmarried couples “if” you and your partner own it together. You need to have an interest on the property if you want your name on the policy and it usually comes with ownership.
For example, Auto loan lenders usually ask to be included on coverage for the vehicle that is used as a collateral for the loan. They have legal and contractual rights over the vehicle as long as the loan is still outstanding. Other parties with insurable interest and shared ownership of the car can be on the joint policy even though they are only friends or business partners and living in different addresses.
You must keep in mind that in such cases people can sue either partner or both in cases they suffer as a result of an accident any one of the permitted drivers caused with the automobile because responsibilities are shared too. As it gets more complicated, you may need to clarify with the carrier after getting quotes to make sure.
In some states, even married people may be required to register the vehicles together if they want to include both in there. Others may accept that spouses have enough rights over each other’s properties and see no problem in joint vehicle insurance for married couple (whichever way the ownership is settled).
Otherwise, you would probably have no problem including a partner or girlfriend as a listed driver regardless of them living with you or not. However, joint names and listed drivers are two different concepts. The latter may have lesser protection and that is why people may be keener on the former.
The state rules can affect how you can arrange vehicle coverage and what you can claim. You will probably plan ahead at the vehicle purchase stage if you want to insure it together in some states, as they may insist that names on the policy and registration document must match.
One of the other often-asked questions is if people can list a driver who doesn’t live with them and it is usually a girlfriend or boyfriend. It is already answered above but you can follow the link to read more.