11-29-10, 08:39 PM
Weird Scenario. My wife's mom has a 2008 Dodge Charger R/T. She owe's about 2.5 more years on it and can't make the payments anymore after a few snags in the road. She offered for us to just take the car and start making the payments and she will take my wife's Kia Spectra with no payment to avoid a bad situation. Once it's paid she will give us the title, I'm not worried about her screwing us over or anything. What I am concerned about is if a Loan and Registration are in one name can I Insure the car legally without that person on the policy? Also will I have problems when it comes time to register the car again in January? I googled and just come up with all kinds of different answers. The one I saw the most said that If I get in a wreck the insurance company can refuse to cover the car once they see it is not owned by me and there is a loan under someone else. I don't want to refinance cause her mom is about 5% lower of an interest rate then we can get and there is only like 30 more payments and I don't want to add her mom to my policy and pay $125 more a month.
11-29-10, 09:04 PM
Well, the correct answer can be given just by your insurance agent. Call them and ask them! We might say something here... but we are not the people that will make the decision if something happens!
11-29-10, 10:35 PM
The finance company is also going to want the person with their name on the contract and registration to have their name on the collision insurance policy.
11-30-10, 01:35 PM
i know with Progressive and Esurance
we use them both in our family over the past 15 years
Eveyroens car is in there own name but hte main policy holder is my Father
for the Insurance purposes
you can have your car insured with anyons friends familys policy but if it gets totaled out the Insurance will only cut the check to the owner of the vehicle
11-30-10, 02:18 PM
1) Insurance follows the car, not the driver, SO if you happened to borrow the car and total it, it would be covered. However, they will investigate why you had the car in the first place and wether it lives with you or her. If it lives with you, it will make future claims impossible/difficult.
2) What would it cost to add you as a driver to her policy, usually it costs nothing if you have a decent driving record. You would lose out on multi-car and home&car discounts or any other discounts your insurer offers you, but it would be less hassle.
I recommend you add yourself as a driver to her policy, tell her agent that the vehicles "garaging address" is your address and let them know youre the main driver of that vehicle.
It'll keep the insurance company happy, the finance company happy, and if you get in an accident, youll be happy that any damages will be covered
(I sold insurance for nationwide a few years ago, i imagine most of this information is still accurate, but your agent,insurer and state may have different rules and laws regarding this situation)