QuestionHi, I'm nineteen years old, and I am looking to buy my very own first sports car, but insurance is going to be out of the roof! So to avoid that, I was wanting to get on my parent's insurance, I mean is that possible without the car indeed being in his name? What would someone in my situation do??
AnswerHi Nick,
In order to put the car on your parents policy, it must be registered to one or both of them, the exception being that as long as you live in the same household, some companies will allow the car to be co-registered jointly between you and one parent.
This is good for you, bad for your parents.
Going on their policy will give you a multi-car discount which will lower your rate. That's the only good point.
The bad point is now that you are over age 18, your parents are no longer responsible for your actions as long as the car is in your name and you have your own insurance. By putting one or more of their names on the registration, they become responsible as owners of the car.
Not only when you are driving but even in cases when you loan the car to a friend.
You are now legally an adult. Be responsible for your own actions.
Pay the additional costs and secure your own policy with the car in your name so your parents aren't risking their home and life savings in the event you or a friend have a serious fault accident.
The savings by putting the car in your parents name and on their policy is only about 12 1/2%. For the additional risk it adds to your parents financial future, it's not worthwhile.
I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
