What happens if I drive a car insured under my parents name?

[GoldenBear]

Bleh? In other words..why would I have to get insurance for myself if the car is already insured?

 

[prodigy]

Technically I think your parents have to let the insurance company know that you're going to be a driver of the car, and the rate will increase a little bit.

 

[ZeroCool420]

If you don't drive it much, it's ok. Like I don't have insurance officially, but since I only drive a little during winterbreak and summer (when i'm home from college), it's all good according to the insurance agent.

Now if I get into an accident or get a moving violation, insurance will cover it the first time, but from then on I have to be officially covered.

 

[iamwiz82]

tell the insurance company you drive it seldomly. Rates wont increase by much. If you get a ticket, or in an accident in your paretns car and didnt tell the ins. company prior, their rates will go thru the roof.

 

[Tauren]

Insurance follows the car, not the driver. In other words, you insure a vehicle, no the driver. But, if you live in the same house and you are excluded from the policy, then you are responsible if you get in an accident. If you are not expressly excluded on the policy, then you are fine. (atleast thats how it works here in MI)

 

[iamwiz82]

tauren, i'm in Mi also, and if the insurance company does not know about a child driving it, and that child gets in an accident, the parents get reamed big time, even though the insurance is just for the car.

 

[Emulex]

yup. you are required to list everyone in your house, who will drive the car. If you say "nobody" they not technically have to cover any claims payable to you, however they will be required to claims payable to otheres.

IE.

full coverage,

you hit another car.

Insurance company will pay for other cars damage.
Insurance will probably not pay for your own cars damage on full coverage.

Insurance company will probably "drop" you, and once you've been dropped, you might
as well be a "DUI" person cause nobody will want to pick you up except for high risk insurance.

 

[Tauren]

Yeah, I know, but I was merely stating the fact that; under MI law the car is insured as long as you are not an excluded driver. It's part of being a "no-fault" state.

 

[Emulex]

btw most insurance companies ask your parents if they have any children, and will in fact, keep records for 16 years, and then contact them when they are in driving age to add them to your policy.

all state is one of those folks who WILL track your kids..wierd huh?

 

[Doggiedog]

Ahh Emulex don't even mention All-State. It wouldn't surprise me if they did stuff like that. Those c0ck$uckers wanted $8000/yr for my new $25K Prelude SH when I was 27, had been driving 10 years, no accidents, no speeding tickets or moving violations ever, weekend car, etc. State Farm was only $2500/year. I wonder how they are still in business?

 

[warcleric]

Doggie: that is strange, I was 27 when I bought my new Cadillac, have a few accidents, and my premium with allstate is $1200/yr Full Coverage $250 deductible. Nobody else can touch that.

 

[vi edit]

Legally, if the car is insured under your parents name, you get into a wreck and kill someone, the people can your parents for damages and whatnot.

Buy putting a car in your name, on your own plan, if you get into a wreck and kill someone, they can only sue you. Your parents are left out of it.

My parents did this to me. They bumped me off of their plan and made me get my own. Thanks Mom and Dad. I love you too

 

[vi edit]

warcleric, same here. My g/f and I are insured through Allstate and no other company can come within $500 of what we a pay a year. We're both under 25 and have three vehicles under the policy. One of the cars is considered a "sports" car, and we also have a '00 4x4 SUV as well.

We only pay about $1700 a year for all three cars.

 

[Mister T]

Insurance rates are also a function of where you live.
If you live in a big city, they will be high...

 

[AmitPatel]

Whether you need insurance or not depends solely on the state you live in. In Texas for example you have to have liability insurance for yourself--does not depend on the car you are driving. My family has three cars, and my parents two cars have restrictions for no driver under 21, so they get a discount. My car is on the same policy but does not have this restriction, so I can drive my car and anyone elses, but not the cars with restrictions on them.

 

[Tominator]

Typically their policy will stipulate

<< ...No Male Drivers under the age of 21... >>

in the policy. If you live with them I'll bet it is against their policy and therefore would void their coverage, if you are not already on the policy anf therefore covered.

BTW, DO NOT listen to the Agent. If it is not in writing it means zip! Make him point it out in the policy!

 

[Zenmervolt]

I think that your parents are probably best off if they let their agent know that you are driving the car. In my case, my 13 year old Accord is still insured and titled to my parents, but I am listed as a driver on the insurance so I am covered. However, since I am not technically listed as the &quot;primary&quot; driver, my rates are lower (~$800/yr full coverage, $200 deductable). As for insurance following the car, the way I understood it (in OH) was that if I had to borrow a friend's car and something were to happen, my insurance would pay for the damages, and my friend's insurance would not have to pay for anything. In the event of you getting into an accident with your parents' car, they are much less likely to get &quot;reamed&quot; by the insurance company if the insurance company knows that you are driving beforehand. I'd say to notify the insurance company, an ounce of prevention is worth a pound of cure.

Zenmervolt

 

[AaronP]

usually the insurance follows the car and not the driver.