The concept of insurable interest is fundamental to the insurance industry. A person has an "insurable interest" in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses.

When you own a car you want to insure it to make sure you are made “whole” by your insurance coverage. A basic requirement for all types of insurance is the person who buys a policy must have an insurable interest in the subject of the insurance. You have an insurable interest in any property you own or which is in your possession.

There are instances where someone may need or want to put insurance on an item that they do not have a complete insurable interest in. For example, the insured must be related to the subject-matter of the insurance that he/she will benefit from its survival or will suffer from loss or damage to it or may incur liability in respect of it. Typically, the registered owner(s) of a vehicle are the entities that have an insurable interest in the vehicle.

In New York, Esurance will allow a person to purchase an auto insurance policy on a vehicle even if they are not the registered owner which means they do not have insurable interest, BUT the insurable interest must be listed on the policy.