Most of the time, the owner of a vehicle will have the car insured in his or her name. This is a simple, practical and logical setup. It guarantees the insurance policy to the person who owns the vehicle. There are a few cases where the owner of a vehicle may choose not to have the insurance in his or her name. This happens often when the owner of the vehicle does not drive the vehicle and does not wish to pay the insurance fees or coverage for it.
In most areas, or jurisdictions, it is completely legal for an individual to insure a vehicle in his or her name and not actually own the car. Some insurance companies may require the express consent of the vehicle owner before they underwrite an insurance policy. Some insurance companies may even go so far as to require the name on the insurances matches the name on the car title.
This policy of some insurers is to minimize the chance that a vehicle will be used in a way that violates the terms of the insurance coverage. As an example, a parent might permit his or her college-age son to use a family car provided it is insured in the son's name and the son pays the monthly premiums. This policy is likely to be initiated in the state in which the car is registered.
If the son were to travel a long distance from home to college or to work without moving the insurance to their new location, they may violate the terms of the insurance policy. To prevent the challenges that this creates, some insurers simply deny coverage in these situations. Other insurers who choose to grant coverage will quite often charge higher premiums to offset any risk they may take on (perceived risk).
It is very important to remember to list the names of anyone who drives a vehicle on a regular basis on the insurance policy. This is the case no matter who the vehicle owner is. If a driver has multiple housemates who also share the vehicle, all of the housemates should be listed as active driers on the vehicle's insurance policy.
In some cases, car insurers can be lenient. Some insurers will permit business owners access personal insurance policies for vehicles which have a title under their LLC or corporation without paying penalty premiums.