by Guest » Fri Nov 05, 2010 09:19 pm
Hello, this is my first post on here.
I was just wondering, I'm a new driver and have only recently passed, insurance prices are very high as you can imagine, my friend mentioned that he signed the ownership of his car over to his parent (who's full no claims, as is mine) and then had himself insured on it. Would this make the insurance any cheaper? He said it did for him, also is this legal etc.?
Thanks in advance for and advice you can give.
Callum
I was just wondering, I'm a new driver and have only recently passed, insurance prices are very high as you can imagine, my friend mentioned that he signed the ownership of his car over to his parent (who's full no claims, as is mine) and then had himself insured on it. Would this make the insurance any cheaper? He said it did for him, also is this legal etc.?
Thanks in advance for and advice you can give.
Callum
Posted: Fri Nov 05, 2010 09:20 pm Post Subject:
Most insurance companies will determine the premium by assigning the highest risk driver to the highest risk vehicle. So the rates would still be based on you. However, with your parents as the Named Insured, you may be eligible for their discounts, which could reduce the cost.
Thanks, Scott Cornelius
ECI Insurance Agency Inc.
Oklahoma City Auto Insurance
Posted: Fri Nov 05, 2010 09:22 pm Post Subject:
Do realize, with your parents taking ownership of the car, they are also taking ownership of the liabilities of the car. In other words, they will be legally responsible if you are in an accident.
Posted: Sun Nov 07, 2010 10:11 am Post Subject:
Simply being added to your parents' auto policy -- regardless of who has title to the vehicle -- will lower your cost of insurance some, because of the multi-car discount that will apply. But it could raise your parents' cost of insurance some as has been explained above. If you agreed to pay the total difference between what they pay without you on the policy, you should still come out ahead.
In most states, insurance companies would prefer to have you on your parents' policy rather than for you to be separately insured. Your parents are far more likely to pay their premiums on time -- with or without you as a covered driver.
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