I recently bought a vehicle from my parents (who live in another state). That car has insurance in their name but I’m one of the secondary drivers on the policy. Do I have to get my own car insurance? Or can I just stay on their policy to save money? I wonder if the state will let me get a tag with an insurance policy that belongs to my parents.
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March 12, 2010 @ 3:04 am
talk to the insurance agent.
March 12, 2010 @ 3:32 am
Your car cannot remain insured to your parents if you are living in another state. You insurance rate is determined in part by the region you live in. That is part of the exposure to risk.
March 12, 2010 @ 3:56 am
You have to get your own policy where you live:
1 – you bought the car from your parents – they no longer own it & they cannot insure something they don’t own. Same as buying a car from a friend – they can’t insure a car they sell to someone else either, doesn’t matter the relationship.
2 – you are in a different state. Insurance policies are state specific. Each state has its own insurance laws, different coverages & different rates.
You MAY get away with putting your parents insurance on the registration form if they don’t ask for the name on the policy (some only ask for the policy number & effective dates), but if there was an accident, your parents insurance company will NOT cover anything.
Get insurance on this car ASAP in your name and don’t drive it until you do. The minute they signed the title to you, their policy ceased covering the vehicle. Also, tell them to take you off of their policy. They are paying higher rates for you and do not need to.