Signing ownership of car to parents.

[CallumMcl]

Hello, this is my first post on here.

I was just wondering, I'm a new driver and have only recently passed, insurance prices are very high as you can imagine, my friend mentioned that he signed the ownership of his car over to his parent (who's full no claims, as is mine) and then had himself insured on it. Would this make the insurance any cheaper? He said it did for him, also is this legal etc.?

Thanks in advance for and advice you can give.
Callum

[Norwayguy]

Hello, this is my first post on here.

I was just wondering, I'm a new driver and have only recently passed, insurance prices are very high as you can imagine, my friend mentioned that he signed the ownership of his car over to his parent (who's full no claims, as is mine) and then had himself insured on it. Would this make the insurance any cheaper? He said it did for him, also is this legal etc.?

Thanks in advance for and advice you can give.
Callum

If you live with your parents and are listed as the driver on the car, I can't see how that wouldn't be legal. It probably would lower your rate but the only way to know would be to call an agent and get quotes...This is all achedemic if your parents have no interest in this approach so you might ask them first. I want to clarify that I am not a P&C agent.

[KieferColbourne]

Most insurance companies will determine the premium by assigning the highest risk driver to the highest risk vehicle. So the rates would still be based on you. However, with your parents as the Named Insured, you may be eligible for their discounts, which could reduce the cost.


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[xrac]

Most insurance companies will determine the premium by assigning the highest risk driver to the highest risk vehicle. So the rates would still be based on you. However, with your parents as the Named Insured, you may be eligible for their discounts, which could reduce the cost.

Good to have you on here. Nice informed post!

[WorthingtonIns]

Do realize, with your parents taking ownership of the car, they are also taking ownership of the liabilities of the car. In other words, they will be legally responsible if you are in an accident.

Mike Wilson
Worthington Insurance

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[Norwayguy]

Do realize, with your parents taking ownership of the car, they are also taking ownership of the liabilities of the car. In other words, they will be legally responsible if you are in an accident.

Mike Wilson
Worthington Insurance

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Alway good to remind people what ownership entails...welcome to the forum.

[55fin]

If the car is yours though, but registered in a parents name to keep costs low. This is illegal as far as I am aware. The best thing to do would be to add one of your parents to the policy which would bring the costs down.