Can I Transfer My Car Insurance Policy to Another Person?

Last Updated on February 5, 2026

Can you transfer car insurance between people? For example, if you have car insurance and a family member doesn’t, can you just swap policies between two different people?

In most cases, you can’t “transfer” an auto insurance policy to another person like you’d transfer a phone plan. An auto policy is a contract between the insurer and the named insured — and the company prices it around that person (and their household drivers) plus the vehicles listed.

What you can usually do is (1) let someone drive your car under “permissive use,” (2) add them to your policy as a driver (or sometimes a named insured), or (3) cancel your policy when you sell/gift the vehicle and have the new owner start their own coverage.

You usually can’t “transfer” a car insurance policy to another person because the policy is a contract priced around the named insured and household drivers.
In many cases, insurance follows the car — so an occasional borrower may be covered without any policy transfer, as long as your policy allows it.
If someone will drive your car regularly (or lives with you), you typically need to add them, exclude them, or rewrite the policy to stay compliant with insurer rules.
When selling or gifting a car, the buyer usually needs their own policy in their name; don’t assume your insurance automatically carries over.

Table Of Contents

Car Insurance Usually Follows the Car (But Policies Still Have Rules)
When a “Transfer” Is Possible (It’s Usually a Policy Change, Not a Swap)
Temporary Situations: Repairs, Loaner Cars, and “Substitute” Vehicles
Selling or Gifting a Car: Transfer the Title, Then Fix the Insurance
Why Prices Change So Much When You Switch Drivers
FAQs on Transferring Car Insurance to Another Person
Conclusion

Car Insurance Usually Follows the Car (But Policies Still Have Rules)

The most important thing to understand is that car insurance policies typically follow the car — not the person. That’s why in many situations you can let a friend borrow your car without transferring anything.

However, this only works if the driver is allowed under your policy. Insurers usually expect you to list the primary driver accurately and disclose household drivers. If someone in your household has a serious violation (like a DUI) or a pattern of traffic violations, your insurer may require them to be rated on the policy, excluded, or (in some cases) refuse the risk.

Bottom line: if a friend or family member only drives your car occasionally, you typically don’t need a “policy transfer.” But if they drive it regularly, live with you, or will become the main driver, you should contact your insurer and update the policy instead of trying to swap coverage informally.

When a “Transfer” Is Possible (It’s Usually a Policy Change, Not a Swap)

There are a few scenarios where people loosely say they “transferred” insurance, but what actually happened was one of these:

Adding a driver: You keep the same policy, but add the other person as a listed driver.
Changing the named insured: Some insurers may allow a spouse/partner to become the primary named insured (or the policy can be rewritten in the other person’s name). This is common during marriage/divorce or household changes, but it’s not an automatic right — it’s an underwriting decision.
Rewriting coverage for a new owner: If the car changes hands, the buyer typically starts a new policy (even if it’s with the same insurer).

If the other person will be driving frequently (or they’re in your household), ask your insurer what they require. In some cases, they’ll want non-driving household members listed too — here’s more on whether non-driving family members need to be added.

Temporary Situations: Repairs, Loaner Cars, and “Substitute” Vehicles

Sometimes people ask about “transferring” insurance because their car is in the shop and they’re driving something else. Many policies include some coverage for a temporary substitute vehicle (like a loaner), but the details vary by company and state — and the safest move is always to confirm with your insurer.

If your car is in the garage for repairs or maintenance, your policy may extend liability coverage to a temporary substitute vehicle you don’t own. But physical damage coverage (collision/comprehensive) can be more complicated, and some situations are excluded.

What about rentals? Some drivers assume rental cars are “fully insured” by the rental company — but that’s not always true. Your personal auto policy may cover you while driving a rental car, and the rental company may offer optional coverages (like a damage waiver). Check your policy and your credit card benefits before you decline or buy anything at the counter.

Selling or Gifting a Car: Transfer the Title, Then Fix the Insurance

If you’re selling or gifting your vehicle, don’t assume your insurance “goes with the car” to the new owner. In most cases, the seller cancels (or removes the vehicle from) their policy, and the buyer purchases their own policy in their own name.

Step one is to transfer ownership properly through your state’s motor vehicle agency. For a quick path to your state’s DMV/DMV-equivalent website, use USAGov’s state motor vehicle services directory.

Then handle insurance:

Buyer: line up coverage before driving away. (If they’re in a rush, here’s how to get auto insurance immediately.)
Seller: contact your insurer to remove the vehicle or cancel the policy effective the sale date, and keep documentation of the sale/transfer.
Paperwork: the buyer will usually need basic details (VIN, driver’s license info, lienholder if financed). Here’s a checklist of documents you may need to insure a car.

After the new owner has coverage set up, they can compare quotes from different insurers to find the best fit.

Why Prices Change So Much When You Switch Drivers

Even when the vehicle stays the same, the price can change dramatically when the main driver changes because insurers rate the policy around the people on it. Big factors include age, driving history, where the car is garaged, mileage, claims history, and more.

For example, someone with a clean record and no recent claims will often pay less than someone with multiple at-fault accidents. Drivers with challenging histories may still find options, but it usually takes more shopping — start here if you need quotes with a bad driving record.

FAQs on Transferring Car Insurance to Another Person

Can I transfer my car insurance policy to another person?

Usually, no. An auto policy is a contract between the insurer and the named insured, and it’s priced based on that person (and their household drivers) plus the vehicles listed. Instead of “transferring,” you may need to add the person as a driver, change the named insured (if your insurer allows), or have the new owner start a new policy.

If someone borrows my car, are they covered under my insurance?

Often, yes — many policies cover occasional drivers with your permission (sometimes called permissive use). But coverage can be limited or denied if the driver is excluded, unlicensed, lives in your household but isn’t disclosed, or is using the car in a way your policy prohibits. When in doubt, call your insurer before handing over the keys.

Can I just add someone to my policy instead of transferring it?

In many cases, yes. Adding a driver is the most common solution when someone will drive your car regularly. Your insurer will rate that driver based on their age, experience, and record, so your premium may go up or down.

What if I’m selling or gifting my car to someone else?

Typically, the buyer/new owner needs to buy their own insurance policy in their name, effective on or before the transfer date. The seller should remove the vehicle from their policy (or cancel the policy) once the sale/transfer is complete. Don’t assume your insurance automatically “goes with the car.”

Does my insurance cover me in a rental car or a loaner car?

Sometimes. Many insurers extend coverage to certain temporary substitute vehicles or rentals, but the exact rules depend on your policy and state. Rental companies may also offer optional coverages like a damage waiver. Always verify coverage with your insurer before you decline or buy coverage at the rental counter.

Can two people insure the same car with two separate policies?

It’s possible in some situations, but it can create claim complications and insurers may not allow it depending on the circumstances. If you’re considering two policies, talk to both insurers first so you understand which policy pays first and whether either carrier will deny coverage due to duplicate or improper insurance arrangements.

Why does the price change so much when the driver changes?

Insurance pricing is heavily tied to the drivers on the policy, not just the car. Age, driving record, claims history, location, mileage, and other rating factors can cause a big swing in premium when a new person becomes the primary driver or named insured.

Conclusion

Most of the time, you can’t transfer an auto insurance policy to another person the way you’d transfer ownership of a car. If someone occasionally drives your vehicle, your policy may cover them — but if they’ll be a regular driver or the new owner, the correct move is to update the policy, add them properly, or have them purchase a new policy in their own name.

Stop Overpaying for Car Insurance