In New Zealand, car registration and insurance don't go hand in hand. So even if a car isn't registered in your name, you may still be able to insure it.
This might be the case if you own more than one car, share ownership, or help a younger family member cover the costs. You just need to have a financial interest in the car. For example, you might own the car but someone else is the main driver, or you might insure your spouse's car.
Let's look at why you might insure a car not registered in your name, how that works and what insurers need to know.
How car ownership, car registration and insurance work
When you're working out who should insure a car, it helps to understand the different roles involved.
Even though they're often the same person, they don't have to be:
- The owner: The person who would suffer a financial loss if the car's damaged, stolen or written off.
- The registered person: The person listed with the NZTA. They're responsible for things like licensing the car and any fines, infringements or demerit points.
- The policyholder: The person who takes out the insurance and holds the policy.
These roles often overlap, but they can also sit with different people depending on your situation. What matters most is that the details are accurate and reflect how the car is actually owned and used.
Do you have to be the registered owner of a car to insure it?
Nope, you can insure a car that doesn't have your name on the paperwork. In Aotearoa, car registrations and car insurance are handled separately. That means one person can own the car, and another can insure it. The only catch? You need to have a financial interest in the car.
You can insure a car you don't own outright, if you have a financial stake in it
You can insure a car even if you don't own it outright. What matters is having an insurable interest, a real financial stake in the car. For example, you might be the co-owner.
Not sure about your situation? Check with your insurer to confirm what applies to you. If you're a Tower customer or still comparing your options, we're here to help.
Get in touch and we'll help you work through it.
What 'the insured' means on a Tower policy
On a Tower Car insurance policy, the insured is the person named in the certificate of insurance. In other words, the policyholder. This doesn't have to be the registered owner. For example, you might insure a car that's registered in your partner's name.
The NZTA records the registered owner on the Motor Vehicle Register. That's the person or company responsible for the car, like keeping it licensed. They're also the one who'll get any driving infringements and are responsible for paying any fines.
Some reasons you might insure a car not registered in your name
Here are some common situations where this applies:
Spouses and partners
This often comes up when couples share a car. One partner might be the registered owner, while the other one takes out the insurance.
If you both use the car and contribute to costs like fuel, maintenance or repairs, you both have a financial stake. That means either of you, or both of you, can be named on the insurance policy.
For example, Mikayla and Aaron share two cars. One is registered in Mikayla's name, and the other is registered in Aaron's.
They both use the cars and share the costs, so they each have a financial interest in them. Mikayla arranges the insurance and is the policyholder for both cars. Aaron also regularly drives both cars, so he's listed on the policies as a regular driver.
In this case, the roles are split. Mikayla and Aaron are both owners (because they share the financial interest), the registered person depends on whose name each car is in, and Mikayla is the policyholder.
While this setup can work, it's important to clearly list who the main driver is for each car and make sure all details reflect how the cars are actually used.
Cars under a finance agreement
If you buy a car on finance, the finance company will have a financial interest in it.
You're still the one who owns and drives the car, so you're the policyholder. The finance company is simply noted on the policy because they have a financial interest, but they're not the policyholder.
If you're a Tower customer, it's important to know that when an interested party is noted on your policy, we can't pay a cash settlement directly to you. Instead, we'll settle the claim with the interested party.
Company-owned vehicles driven by an individual
Many Kiwi drive company vehicles. The vehicle is usually registered to the company, while you drive it day to day.
In most cases, the company is the policyholder, and you're listed as a regular driver. Because they own the vehicle, they have an insurable interest, and that's why the policy sits with them.
Owning a car your child drives
Once your child has their restricted licence, it's handy for them to have their own car, especially when they're getting themselves to and from school. While they're still studying, you'll likely be helping with the costs too.
If you're keeping ownership, we see this a lot. You buy the car, it's registered and insured in your name, and, if they have their restricted or full licence, your child is listed as the main driver.
If you're gifting the car instead, it's usually best for your child to register and insure the car in their own name. That way, they're responsible for things like fines, tickets and demerit points.
Buying a car for an older relative
It's not just kids who need a hand. If you're helping an older relative, you might buy the car and set up the insurance too.
If the car stays in your name, you're on the policy, and your relative is listed as the main driver.
If it's a gift, it's usually better for them to register and insure it themselves, even if you're helping with the costs. This keeps everything clear and makes sure the right person is responsible for any fines, tickets or demerit points.
What is 'fronting'?
'Fronting' is when someone says they're the main driver of a car, but they're not. This is usually done to get a cheaper premium.
If the person listed isn't actually the main driver, the information on the policy isn't accurate.
Fronting explained
A common example of fronting is when a parent is the policyholder and listed as the main driver, but their teenager is actually the one using the car most of the time.
It's important that all the information you give your insurer is honest, correct and complete.
Adding a regular driver isn't the same as fronting
Adding someone as a regular driver on your car policy is required if they use your car often.
For example, if your teenager drives your car a few times a month but you're behind the wheel most days, you're still the main driver. Your teenager should simply be listed as a regular driver.
If you're a Tower Car insurance policyholder, you can easily add or remove a regular driver in My Tower.
Named policyholder vs named driver, what's the difference?
You can insure a car in your name and still add other people who drive it to your policy.
Here's how it works:
- Policyholder: This is the person who owns the policy, is responsible for it and who we'll pay if we cash settle any claims.
- Main driver: The person who dries the car most often.
- Regular drivers: People who drive the car regularly, but not as much as the main driver.
Getting these roles right helps make sure your cover is set up properly if something goes wrong.
Who can drive your car?
Most car insurance policies cover anyone driving your car, as long as they have your permission and meet the policy conditions. This is the case with Tower.
You don't need to list every occasional driver. For example, if a friend borrows your car to pop to the shops, they're covered provided they meet the policy conditions.
If someone starts using your car regularly, you'll need to add them to your policy. You can do this in My Tower, or let us know and we'll sort it for you.
How to arrange insurance on a car not registered in your name
Every situation's a bit different, so it's important to make sure your insurer reflects how the car is owned and used.
Make sure the details you provide are accurate, including who owns the car, who drives it, and whether anyone else has a financial interest in it. If you're a Tower customer, you can easily update an existing car policy or buy a new one in My Tower. If you're unsure, get in touch and we can help.
Be upfront with your insurer from the start
It's important to be honest with your insurer from the beginning. Let them know who owns the car, who drives it, and why the registration and insurance might be in different names.
Insurers deal with these situations all the time, so sharing all the details helps make sure your cover is set up right.
What information you'll typically need to provide
Here's what your insurer will usually ask for if you're insuring a car in someone else's name:
- Your vehicle's details, including make, model, year and registration.
- The owner's details.
- Your relationship to the car.
- Who the main driver will be.
- Whether there are any other regular drivers.
- Any company with a financial interest in the vehicle.
They might ask a few other questions to help make sure you have the right cover.
Not sure what car insurance you need?
We offer both personal car insurance and commercial vehicle insurance. You can choose what cover fits your needs, whether it's your car, your partner's, a shared family car, a company vehicle or a vehicle used for commercial purposes.
Get a quote today or explore our tips and guides on cars and car insurance to learn more.
Already with us? Log in to My Tower to manage your policy any time. Don't have an account yet? It's easy to register, so you can view and update your cover when you need to.
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FAQs about insuring a car not registered in your name
Insuring a car that's in someone else's name can help protect your financial interest in that car.
Yes, this is usually fine if you both contribute financially to the car.
As long as you have a financial interest in the car and you're upfront about who drives it most often, this setup is generally okay.
Yes, you can, as long as you have a financial interest in the car and the main driver is listed correctly. For example, you might insure a car you've bought for your child or an older relative.
You can also choose the level of cover that suits your situation, from third party through to comprehensive insurance.
No, the registered owner and the policyholder don't have to be the same person. For example, you might insure a car in your name while your partner is listed as the registered owner.
No, one policy covers one car, so you can't have multiple policies on the same vehicle.
If you're unsure how to set things up, check with your insurer to make sure you have the right cover. If you’re a Tower customer, get in touch and we can help you make sure you're both covered.
Yes, this is a common setup. The company usually holds the policy, and the employee is listed as a regular driver.
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