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I'm not sure she would be able to insure it if she didn't own it - some states require ownership.
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Millions of people insure vehicles they don't own...
If you lease a vehicle you are still required to provide insurance,
Ditto if you take a loan on a vehicle...
In both cases some entity other than you owns the vehicle..Yet you the operator have to provide, at a minimum, liability insurance. The owner of the vehicle (leasing agency/bank) could require that you hold collision coverage for the duration of the agreement..
The state still requires that the vehicle is insured...