Last Updated: July 21st, 2015
You are the policyholder and thus ultimately responsible for making certain the car insurance bill is paid. You’re the one who has a contract with the insurance company, not your girlfriend. So, if you leave it up to your girlfriend to make payments and she doesn’t, it’s you who will be canceled for nonpayment.
Besides the possible black mark on your insurance and credit history that you could receive if your auto insurance bill doesn’t get paid, there is another problem with this arrangement: The car you’re insuring isn’t your property.
To insure a vehicle, car insurance providers normally require that you have an insurable interest in it. This means you would be financially affected if something
were to happen to the car. Usually to have an insurable interest in a vehicle you need to be the car owner, co-owner, co-signer or lienholder.
If you didn’t tell the insurance company that the insured car was owned by someone else, it could spell trouble. Misrepresenting who owns a vehicle is fraud and could serve as grounds for the company to not pay out claims and cancel your policy.
If you did tell your insurer that your girlfriend owns the car, and it still offered you a policy, then you should be fine for claims. However, your girlfriend should be listed on the policy as the owner, meaning she would be the one paid out if there were a total loss of the vehicle.