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Can I Insure a Car that I Own Under My Parents’ Insurance Policy?
July 20, 2020
There are some things to consider before trying to insure your car under your parents’ policy.
The answer to the question is dependent on the State in which you live and your parents’ Auto Insurance company's guidelines.
Purchasing and insuring a vehicle involves three basic steps:
- Title - Document showing the owner's name of the vehicle.
- Proof of Insurance - Normally in the name of the owner, but in some situations does not need to be exactly the same.
- Registration - Shows to whom the car is registered for the purpose of obtaining license plates.
There can be numerous scenarios regarding what is acceptable - or - not acceptable with the:
- Insurance Company
- Companies have underwriting guidelines that are tied to how an insurance policy is written, insurable interest in the vehicle and what they consider generally acceptable.
In the scenario being considered, it is your parents’ policy that is in question and at risk. Their best interest and standing with the insurance company should be a major consideration. - DMV - The State Department of Motor Vehicles will have specific rules governed by statutes regarding how a vehicle can be Titled, Insured and Registered.
It would be best for you and your parents, to contact your local auto insurance agent and/or your state's DMV[1][2] to determine the best configuration of the three documents above, prior to purchasing a vehicle.
Have more questions about car insurance and how what policy is best for your family? We LOVE to help! Please feel welcome to call us at 607-324-7500 for assistance.
Footnotes
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
