Question:

Auto insurance question - covered or not covered?

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My friend who lives in CA leased a new car last year under her boyfriend's name and credit but she's the one making payment every month. She then purchased an Auto Insurance from Progressive insurance. They told her that in the event of accident, she and the car will be covered eventhough the car is not under her name as the policy covers both name and the specific car stated in the policy. Is this true? She had an accident once but it was not her fault. The other driver's insurance paid for everything. I was just wondering if she's covered just in case another accident happen in the future. I never heard a case like this. So I don't know how to help her. Please give your opinion. Thank you.

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6 ANSWERS


  1. The insurance she purchased covers the car. The above answer is correct. What is her insurable interest? Also, if she set this up this way to save on insurance costs (generally young women pay less than young men) they may consider this deal to be fraudulent and may deny any claim.


  2. She should be very careful.  In the eyes of most insurance companies; she legally does not not have an insurable interest in the vehicle.  Why? her name is not listed on the lease agreement.  Anytime you insure a vehicle, most carriers will ask for a copy of the registration, lease and/or finance agreement.

    Did they ask for a copy of the lease agreement?

    The vehicle should have been insured by the boyfriend and in turn (your friend) should be listed as a principal driver of the car.

    It was most likely cheaper to have the car insured in her name. However, ultimately, the insurance company could use this as a reason to deny coverage on the car in the event of a claim.

  3. Have her look at the Declarations page of the contract.  It should list the vehicle and the primary driver (the way I read your question, it is she and not the boyfriend who is the primary driver).  Make sure the named primary driver is in fact the primary driver; playing games here might cause an insurance company to deny coverage for a material misrepresentation on the policy application.

    Second, realize that the big coverage is for liability, to cover damages she may do to somebody else or to their property.  Liability coverage also extends to occasional drivers of the car (but not if it's made available for their regular use), meaning that if she lets a friend drive her car, her coverage will extend to them if her friend has an at-fault accident.  There may also be collision and other-than-collision (sometimes called comprehensive) coverage, which will pay to fix the car if she damages her own car.  If somebody else damages her car, their liability insurance would pay.

    There may also be medical payments coverage and uninsured motorist coverage--a conversation with her agent may be in order to explain how these work.

  4. She has no insurable interest in the car.  The policy doesn't have to pay.   I haven't seen the policy, but Progressive is usually pretty tight about this kinda thing.  

    I wouldn't bet on it.  

    Stupid move on her boyfriend's part.  He could end up paying for this car for another 10 years.

  5. if i understand this right your friend is paying on a car that her boyfriend is legally leasing...meaning its all in his name and she is just making the payments.  if thats correct, then the insurance policy needs to be in her boyfriends name with her listed as a driver.  if thats how the policy is set up then she is covered and all is good.  if not, they need to correct it ASAP or Progressive could and most likely would deny any claim.

  6. Under your circumstance,I suggest here for you to have a visit.http://lifeinsurance.online-helpers.info...

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