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Thread: How to insure person not in your household

  1. #1
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    Default How to insure person not in your household

    Two years ago, my daughter was cited for a DUI and (on a separate occasion) a speeding ticket. No other vehicles were involved in the citations, and no accidents. At the time, she was living with me and covered under my multi-car auto insurance policy along with my husband and her 2 college-aged siblings.

    She has since moved out to work/live in a different city and not had any further traffic cititations. She is currently driving an older vehicle on which she is carrying expensive high risk insurance. This vehicle is in poor condition and needs to be replaced. But due to poor credit, she is unable to obtain financing to purchase a vehicle. So, my husband purchased the car for her....with only his name on the title. However, I am not sure how to get her insurance coverage for this one vehicle without impacting the coverage we have on our other 4 vehicles. Due to the need to finance this, we could not add her name to the title.

    Any suggestions?


  2. Last edited by slinky; 10-24-2010 at 06:38 AM.

  3. #2
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    If she's out of household it's even better, she can have her own policy even though her name is not on title. It will not affect the price of your other policy at home. I realize you posted the question a while back and have probably resolved the issue but we specialize in young drivers if you want to give us a call for a quick quote.

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  4. #3
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    She can get the insurance on her own and list you as registered owner of car. Then you will be notified if the insurance lapses or cancels.

  5. #4
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    A person can insure a vehicle under their own policy that is registered to someone else. This actually happens very frequently. An insurance company will either require the registered owner also be added as a driver to the policy or be excluded. Because the registered owner has an interest in the vehicle and is legally liable, they may want to have their daughter increase the liability limits to her policy to cover themselves in the event she had a loss. Because the daughter does not reside in the household she must carry her own policy. However, SOME insurance companies may make an exception due to the registration. For example: If I buy a car for my son, who lives on his own, and that car is in my name, Mercury may allow me to add him and the car to my policy because as the registered owner, I have an interest in that vehicle and it legally does belong to me.

  6. #5
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    She can get her own policy on that vehicle regardless if it is in her name or not. Make sure she has higher limits for liability that way if she does cause a major accident- her policy will pay out to those limits and you guys will not be affected.

  7. #6
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    Quote Originally Posted by Dais View Post
    She can get her own policy on that vehicle regardless if it is in her name or not. Make sure she has higher limits for liability that way if she does cause a major accident- her policy will pay out to those limits and you guys will not be affected.
    Dais, in most places insurable interest is manditory for an insurance contract to be in effect. Are you sure their daughter can insure the vehicle if she is not the legal owner? I would think she could be listed as a driver, but the named insured (owner of the policy) would be the legal owner. This prevents other people from benefiting from a loss to someone other than the owner. It would be interesting to know for sure. Please confirm that this is the case for your state (and what state). I would like to view the stipulations for an insurance contract in that state. Seems odd to me, but possible I'm sure.
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