by Paul.Fischer » Mon Jan 17, 2011 08:51 pm
Is there a Law that requires, registered owner to carry the policy and Legal Owner or anybody else can not? (if yes, what is the law?) Ex.. a Father wants to make sure his son never drops coverage and has vested interest in vehicle, can't he carry the insurance if he add's son to policy, son lives near by and both live in WA State.
I want to purchase (and change title) a vehicle and make payments to him as the Lien holder. (Father)
What happens if he borrows the car back, get's in a accident, is carrying and paying for the insurance policy, will the Insurance company have a problem sending him a check as the legal owner but not the registered owner, will they refuse to send me a check if I total the vehicle but don't have my own policy?
I want to purchase (and change title) a vehicle and make payments to him as the Lien holder. (Father)
What happens if he borrows the car back, get's in a accident, is carrying and paying for the insurance policy, will the Insurance company have a problem sending him a check as the legal owner but not the registered owner, will they refuse to send me a check if I total the vehicle but don't have my own policy?
Posted: Mon Jan 17, 2011 09:17 pm Post Subject:
A legal owner has the right to purchase PROPERTY coverage on a vehicle, but not liability coverage (since the LO bears no liability to third parties). State law requires that the vehicle be insured for liability claims, and third party property losses, but does not require first party property loss coverage for the Registered Owner.
If you do not live in the same household, your father can be an incidental/occasional driver of your vehicle. If he has his own personal auto policy, and you do not list him as an additional driver of your vehicle, he may or may not be covered under your policy, but would always be covered under his own as secondary.
What exactly are you trying to do? Get insurance at a lower rate because you have a bad driving record? If you don't live in the same household, it's not going to happen
a Father wants to make sure his son never drops coverage and has vested interest in vehicle,
If that's the only concern, then the Father can make the child's insurance premium payments and sue his child in small claims court for not paying him back. But at least the vehicle will be insured. It doesn't matter who the owner is, anyone can pay another person's insurance premiums.
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