My car under my parents insurance?

Question

Ok i have a hypothetical question...Say if my car is in my name, and i am under my parents insurance...And i get in a major accident are they liable?

Are they at more risk if i am in their name but i own the car?

Answer 1

Not sure what you mean by "i am under my parents insurance."

Let me give a few situations (car registered under your name)

1)  Parents' insurance doesn't list you. Parents' insurance company will NOT cover.

2)  Parents' insurance lists you as a driver. The insurance will cover and your driving record will reflect in the premium.

Answer 2

A car should be insured in the name of the person who owns the vehicle...but this happens alot - because most people don't know that is a rule - they just call & add their kids cars to their policy - so it's not unusual at all...

The reason for the rule is that if there is a claim - the claims check would be written to the "owner of the insurance policy" instead of the "owner of the car"

It's your parents and you obviously trust your parents to give you that claims check if you were to have an accident - so i don't see it as a big deal at all..... the only time it becomes a problem is when it's a NON-family member or someone you don't trust that is insuring your vehicle

Answer 3

Unless they are driving, your parents have NO liability for a car in your name.  If you have decent liability coverage on the policy, it doesn't matter anyway.  Your liability will probably never reach the policy limits.

Answer 4

If the car is in your name, the policy needs to be in your name. However, I have to disagree with the previous post that indicates the policy won't pay if the policy name doesn't match the title. Thats not true. If you've been paying for the policy and hypothetically didn't know you had to call to switch the names to match, the insurance company would pay! Thats not a legal reason to deny coverage.

But, if you're over 18, the car is titled to you only, then you're responsible. If they are on the title or the insurance policy, or if you're a minor, then they would have some responsibility.

To keep them safe, put the car in your name and the insurance policy!

Answer 5

If you're a minor, they can be held liable, regardless of who's policy the car is insured on.  If you live in their household, I've seen ADULT children cause an accident, and the parents held liable still.

The name on the policy has to match the name on the title, for the POLICY to pay out.