If someone adds a vehicle to their auto insurance policy without being forthcoming about whom the registered owners are or the real reason that the car is being added to the policy it can likely allow the insurance company to not cover the car for claims. We are unable to give legal advice and also not being well versed in Texas law we cannot for sure say this is insurance fraud or not but if someone is doing such a thing to avoid the mandatory insurance laws or knowingly falsifies information they would likely be in trouble.

If you or anyone you know wants to insure a vehicle that they do not own, and thus have no insurable interest in, they should explain that to the insurance agent when trying to add the car to the policy. If you are unsure if you are able to insure a vehicle ask the insurance company and find out instead of doing something possibly illegal. Being honest and upfront will allow you to get an accurate insurance quote and to be properly covered.

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