Can friend get insurance on car in my name?

Question

I gave a friend of mine a car that was my Mother's after she passed away. The title has my name on it however the credit union will not release it because there was still some money owed.

Anyway since he drives the car I was told that I had to get insurance on it being in my name and just put him down as a driver. Is this true?

Can he get his own insurance on the car?

I am worried if he would get in an accident it would raise my premiums.

Answer 1

That's not true. He can get the insurance in his name. At least it's this way in Ohio. We do not check who's name the car is in, we don't even see the title. All we do is enter a VIN number which doesn't bring up an owner. Just make sure that it IS insured, because if he is in an accident, and he's not insured, the third party could come back and sue you.

Answer 2

If your name is on the title -- you are the titled owner. If you had the car financed with the credit union and then sold it - the credit union is not going to release the title until they get paid. The car was put up as collateral for the loan. The bank is not going to release the collateral until they get paid. They are not going to give you a clear title as long as money is owed to them.

If the car loan was in your mothers name -- that should be satisfied from the estate proceeds. Just because your mother passed away - does not mean that her unpaid debts just disappear. Any unpaid debts (including the car loan) will have to be handled in the probate process and paid for by your mothers estate.

As long as your name is on the title -- you are the legal owner.

That means - if your friend wrecks the car and injures someone -- the person can sue your friend as the operator of the car and you as the owner. Premium increase is the least of your problems.

You will have to pay the loan off on the car and then get the title from the bank. You can then sign the title over to your friend and he can title/register the car in his name. This will end your responsibility for the car.

I am very sorry for your loss.  

Answer 3

I am not sure how that works. I think because the title is in your name, you need to have insurance on it yourself and add your friend as a driver.

You should contact your insurance company and ask.

Answer 4

1) You are taking a huge risk letting anyone operate an automobile in your name 2) Your risk is being compounded by the fact he has no insurance 3) Get the car back and sell it - to him if he can pay cash or anyone else who can pay cash

Answer 5

your friend can get insurance on the car with you as the registered owner. or you can add him to your insurance policy as an additional driver. you do not own the car, the credit union does. you will have to pay them so they will release the title to you

Answer 6

Depends.  Depends on the company and state in which you are living and where the car is registered.

No matter what... your name MUST be on the policy whether you are the named insured, with your friend as the rated driver.... or if you are able to give him care, custody and control of the car and have yourself listed as an additional insured but your friend still rated.

NO MATTER WHAT your NAME MUST APPEAR on the insurance policy since the car is in your name and money is still owed on the car.

Until you are able to transfer that vehicle into your friends name, you CAN be held legally liable for your friends action since you have the financial responsibility of owning that car (meaning if theres a loan on the car... you have to pay it if it is in your name and you are listed on the title).

Any accident that your friend would be in CAN effect you. I'll give the WORST case scenario... your friend had a few beers then drove YOUR car and killed someone.... you CAN be held responsible for that because YOU LEGALLY own the car since YOUR name is on the title.

Hopefully this helped and I'm very sorry to hear about your loss.

Insurance companies ask for proof of insurance to make sure you are insuring a car that YOU OWN!

Answer 7

The best way to go about this is to have the policy in your name and your friend listed as a driver on the policy.  The other way to go is for your friend to get insurance in his name, but have you listed as an additional insured on the policy.  Basically, you need to be listed as an insured somewhere on that policy to cover you since you own the vehicle.