by kcmay1 » Fri Mar 25, 2011 03:53 pm
He's 19. He holds the title to the car. He won't be driving it. I will drive it occasionally. He can't afford insurance while he's in college so I'm taking over the car while he's gone. How can I get insurance on it in my name without him having any insurance on it.
Posted: Sat Mar 26, 2011 02:38 am Post Subject:
The _vehicle_ needs to have insurance. If you are only obtaining liability coverage then you could obtain a policy in your name, on the vehicle.
Posted: Sat Mar 26, 2011 12:10 pm Post Subject:
Thanks! It's a 1998 Olds. Just need state minimum. Do you know the name of an insurance company that will insure only me and not him. The one I have says HE has to have insurance and then I can get non-owner insurance.
Posted: Sat Mar 26, 2011 12:46 pm Post Subject:
Just don't tell them who owns the vehicle (they ask?).
Perhaps not my best advice. The issue is that your grandson might have an exposure if the state allows the owner to be held liable for the use of the vehicle. Most do. So if you were to kill someone, they could come after your grandson as well as you... and your grandson would not have insurance. So yes, it's best that you are both listed on the policy.
So... your grandson could simply get the policy with you listed as a driver (your grandson would be rated as a driver as well and you'd be paying a premium on this) or your grandson could get a policy and you could get a non-owners (more expensive and not the way I'd do it).
The way I mentioned leaves your grandson exposed with no insurance but under almost every situation someone is going to settle for your policy limits and not worry trying to go after your grandson as he probably does not have any assets. Like I said, not my best advice. Personally, I think the best way to do it is for your grandson to get the policy and for you to be listed as a driver.
Posted: Sun Mar 27, 2011 04:04 pm Post Subject:
I'd suggest that you find a company that will allow you to insure it while it is titled to him. Here in Pennsylvania we have several carriers that will allow it. You name him as an additional insured and therefore protect his interest as owner but do not pay a premium for him as an operator. Unfortunately, to avoid the premium charge for him as a driver you may need to sign a driver exclusion on him.....In English...."keep looking"
Posted: Sun Mar 27, 2011 04:09 pm Post Subject:
While anything is possible, I don't think a carrier is going to have a "additional insured" endorsement on an auto policy... and if they did... it's would simply be the same as adding the person as a driver. The risk is about the same and statistics are probably going to show that this "additional insured" is going to have access to and drive the vehicle anyway. If they were an 'additional insured" they would get coverage when driving yet a lower premium would be charged.
I can't see an additional insured being excluded from the policy. Also, very few carriers even allow excluded drivers any more.
But it certainly is possible. I work for an Excess and Surplus lines carrier and they write some pretty crazy stuff. But in that case, the premium would be through the roof.
Posted: Mon Mar 28, 2011 12:28 pm Post Subject:
I suggested the additional insured because I've done it dozens of times for clients. We specialize in personal lines not E & S...that is why I don't post comments on E & S questions...I leave it to those who are more informed.
We currently have 5 preferred carriers who will issue a auto policy with a named driver exclusion...so there are a "few" left who will do it.
Posted: Mon Mar 28, 2011 01:33 pm Post Subject:
An additional insured would then have the ability to use the vehicle and be covered under the policy. How is this different then a listed driver? Same risk... should result in the same premium.
Posted: Mon Mar 28, 2011 01:36 pm Post Subject:
Not if they're excluded as a driver...coverage would be afforded as the registered owner but not as a driver
We can do it here in Pa, not saying it can be done in all states
Posted: Mon Mar 28, 2011 01:54 pm Post Subject:
So no premium is charge for the IA... as there is no additional risk.
I'm betting its one of those things where underwriting does not think about the claim. Mostly likely PA is going to require the insurance company to extend coverage to the AI even if he's driving. So no premium is collected yet additional liability exists.
Not saying it's not done... it's just the underwriting not understanding that state law is probably going to require coverage be extended anyway.
Trust me... AI (and/or excluded drivers) _always_ drive the vehicle.
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