Insurance on a car that you do not own yourself?

Question

Im 17 years old. My grandma will buy me a car. But she doesn't want me on her insurance, so she said i had to wait til i was 18 til she would buy it. I was wondering if it's possible for my mom to put insurance on the car for me, if she's not that one that own's it. She can't on it for medicaid reasons.

Thanks.

Answer 1

Technically, its against the law to insure a vehicle that you don't own.  Basically, you and your mother is commiting fraud.  The insurance company is insuring your mother as the risk.  However you are the driver and the risk is much greater with a young driver.  The reason your wanting to do this is to avoid the high preminums.  The insurance company want to cover the risk in which you are representing.  How would you like for your mother to buy a new car and later find out the engine is three years old.  You thought you were getting one thing but you got something else.  It's the same with insurance companys

Answer 2

Honey, if the car is titled to you, you can buy your OWN insurance policy, I've written LOTS of policies for kids under 18.  

The name on the title HAS to match the name on the policy. So no, if the car is titled to you or grandma, the POLICY has to be in the name of you or grandma.

Answer 3

I believe that  Progressive and AIGdirect (http://www.tkqlhce.com/click-3014621-105... will allow you to insure a car that is in someone else's name.

Answer 4

Desite what many people, even some insurance agents believe, In most USA states anyone can insure any car they choose to insure.  It doesn't have to be the owner who insures the vehicle.  In your case because you are a minor, assuming you live with your Mother, I believe that your Mother MUST insure the car.  I don't think it matters who owns the car. but state laws differ.  Call the insurance company

Answer 5

There are 2 issues here.

1) Any car, regardless of your license, must be liability insured per state law. Collission is only required if a lienholder has title (a car loan).

2) Your home address (where you live with parents, or girlfriend, or grandmother) will have to list you as a licensed driver. This will increase the liability portion of their policy.

Once you are licensed by the state, the insurance company will be informed automatically (usually quarterly reporting from DMV) and assess the charge to the insured. So, if you live with mom, she will notice changes to her policy at renewal time or sooner.  Be prepared. Start saving $$ for the increase.  There is no escaping this.  The DMV and Insurance companies got smart in the last 20 years.