Insurance Interested-Party Definition

Insurance Interested-Party Definition
If you own a car that needs coverage, an insurance company considers you an interested party.

Who Qualifies

Usually the interested party is the owner of the insured item, but others can qualify as well. If you finance a car, for example, the insurance agency considers the lienholder to be an interested party. A parent, guardian or loan co-signer also might qualify as an interested party.

No Interest? Not Interested

Insurance companies normally don’t issue policies to anyone who isn’t an interested party. If you buy a car and are unable to pay for the insurance, for example, you probably won’t be able to convince your insurance company to allow a friend to insure the car instead if his name is not on the title. Even if it does, the friend might have a tough time filing a claim successfully if it's damaged. The company can argue that he didn’t suffer any financial loss, since the car doesn’t belong to him.