Do co-signers have to be on the auto insurance policy?

A co-signer is generally not required to be on the auto insurance policy, but it might be wise to add them if the co-signer regularly drives the vehicle.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 23, 2022

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Things to remember...

  • Co-signers only share ownership if their name is on the title
  • Anyone listed on the title can be held liable for an accident
  • Any regular driver of a vehicle can be added to the auto insurance policy

The role of a co-signer on an auto loan is to provide the lender with extra assurance that the loan will be paid. However, it’s natural to wonder about any additional obligations you may have as a co-signer or vehicle owner.

There are two different questions you may be considering:

  • Do co-signers have to be on an auto insurance policy?
  • Can you co-sign for car insurance?

Here we’ll take a look at both questions and consider some additional information about insurance with a co-signer.

Are co-signers required to be on the auto insurance policy?

No, the co-signer on a car loan is not legally obligated to be on the auto insurance policy. Only those who actually drive the vehicle are required to be on the insurance policy. Anyone listed as a driver on your insurance policy is covered in the event of an accident, but you won’t need this coverage for your co-signer if they don’t drive your vehicle.

The co-signer’s responsibility is to ensure the loan is paid if the vehicle owner fails to make the payments. Beyond this, the co-signer has no obligation to be involved with insurance, registration, or any other process involving the vehicle. 

However, it’s often a good idea to list the co-signer on an insurance policy under certain conditions:

Co-signers Who are Also Co-owners

A co-signer only has their name on the loan but none of the vehicle’s other documentation, such as title or registration. However, if the co-signer is also listed on the vehicle’s title, they are more than just a co-signer — they are a co-owner. 

When this is the case, it’s wise to have both co-owners listed on the car insurance policy. In the event of an accident, the vehicle’s owner(s) may both be considered liable, regardless of who is driving. For this reason, consider adding a co-signer to an auto insurance policy when they are also a co-owner of the vehicle. 

Co-Signers Who Also Drive the Vehicle

If anyone other than the vehicle owner is a regular driver of the car, then they should be included in the policy to avoid liability issues. This includes co-signers, as it’s fairly typical for a co-signer to drive the vehicle they co-sign for.

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Can you co-sign for car insurance?

There is no co-signer on a car insurance policy. Co-signing is a term that is strictly related to the loan used to purchase the vehicle.  A co-signer often referred to as a co-borrower, is involved in the car-buying process but does not necessarily hold any ownership over the vehicle.

However, adding the co-signer as a driver on the insurance policy has possible financial benefits. For example, if the vehicle owner is a high-risk driver, adding the co-signer to the car insurance policy could reduce your insurance rates.

Do co-signers have to be on the auto insurance policy?

No, including the co-signer on an insurance policy is not required but often recommended. The co-signer’s obligation is only to the vehicle’s loan, so they are not required to be on an insurance policy. However, it’s often a good choice to add them anyway if one of these conditions is true:

  1.         They’re also the vehicle’s co-owner.
  2.         They regularly drive the vehicle.

Adding the co-borrower as a second driver on the policy can also help reduce monthly rates, but car insurance quotes will vary depending on each driver’s history.

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