Can You Insure Someone Else's Car?

Whether you've recently purchased car insurance for the first time or have been an insured driver for several years, there may be some aspects of your policy that seem unclear. That's ok! Insurance is a complicated subject filled with nuances, small details and variables.

That's where we step in — our team at Surex is always happy to help answer all of your car insurance questions.

One of the more interesting questions that we've recently received is, "can you insure someone else's car in Ontario?". Although most motorists purchase car insurance for vehicles they own, some drivers want to learn the answer to this niche question.

Continue reading if you'd like to learn about insurable interest and if you can insure someone else's car Ontario.

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What is insurable interest?

The term “insurable interest” refers to whether the person is the owner of the risk or not.

Here’s a basic example of how insurable interest works in regards to car insurance:

Driver A has a car in their name, therefore they have an insurable interest. Driver A’s partner is not listed on the ownership, therefore the partner does not have insurable interest.

With that in mind, it’s important to remember that insurable interest doesn’t work in the exact same way for home insurance in Canada:

Homeowner A has a house in their name only, so they have insurable interest, and are the sole signee on the policy. However, in this case, Homeowner A’s partner is also considered "insured" because they are a family.

Now it’s time to answer the primary question at hand: can you insure someone else’s car Ontario?”.

Do you have to be the registered owner of a vehicle to insure it in Ontario?

The answer is yes, you do have to be the registered vehicle owner.

However, a registered owner can give permission to a driver to speak and set up a policy on their behalf. A signed Letter Of Authorization is required, stating that the driver can speak for, and purchase a policy, on the owner's behalf. The driver can pay for it as well.

But, the owner of the car is the one who will sign the policy, and be responsible for any payment defaults, cancellations for non-pay, any non-disclosures (for example, the driver doesn't give the correct usage information), and any accidents the driver may have during the duration of the policy.

This process can be efficient for the owner and driver, however, it can be dangerous for the owner because any defaults of premium, cancellations for non-payment, etc., will follow them for several years and increase their future insurance premiums for up to three years (or more if the policy is cancelled for Non-Disclosure or Material Misrepresentation).

Is getting insurance for someone else's car worth it?

If you’re planning on purchasing your own vehicle, you do need to have valid car insurance in Ontario. Driving without car insurance is a criminal conviction in Ontario and can lead to severe consequences ranging from a significant fine to a licence suspension.

Click here to learn more about the risks of driving without insurance in Ontario and why it's never a good idea.

Can you drive a car you don't own if you don't have car insurance?

Yes, a vehicle owner can lend their car to another person (significant other, friend, family member, etc.) for a short period of time if they have a valid car insurance policy. However, the lendee must have a valid driver's licence in order to operate the vehicle.

Please note that even though drivers can lend their vehicles to anyone with a valid driver's licence, if the lendee were to cause an accident in that vehicle, the accident will follow the owner of the car for up to ten years if the driver does not have valid insurance on another vehicle elsewhere.

What is a secondary driver?

If you're planning on using a family member or significant other's vehicle on a regular basis, you may want to chat with your Surex insurance advisor about being added to their policy as a secondary driver.

A secondary driver is a named driver on the policy who can legally operate the vehicle without having their own insurance policy. This is a fantastic option for parents who want to give their children the freedom to drive without being bogged down with additional expenses. However, drivers should note that adding a secondary driver to your car insurance policy can lead to a premium increase.

Looking for cheap car insurance in Ontario? Contact your Surex insurance advisor today!

Finding the ideal car insurance policy can feel like an arduous task, especially if you're doing it by yourself. Thankfully, you don't have to shop solo — you can team up with your personal Surex insurance advisor.

Whether you're looking for car insurance for someone else's car, your own vehicle, or want to learn more about adding a secondary driver, we're here to help.

Our advisors work closely with some of the most respected and well-known car insurance companies in Ontario, including Aviva. Partnering with a variety of insurance providers gives drivers, like you, the ability to compare potential plans until they've found the perfect product that meets their needs and budget.

Feel free to reach out to one of our Surex insurance advisors today to receive up to ten competitive car insurance quotes in ten minutes or less.

Click here to learn how we can help you save up to 25% when you bundle your car insurance with another form of coverage (or coverages) with one of our partners.