by dontfreakingbugme » Mon Aug 22, 2011 08:17 pm
My wife and I have two vehicles and I have a company car. We rarely if ever use the 3rd vehicle. My mother, who lives beside, not with, us needs a vehicle.
I'd like to give my mother possession of the vehicle to drive at her pleasure. It would be garaged at her home and in her control. I don't want to have it registered in her name. ( Besides not wanting my siblings to have an ownership claim should something happen to Mom, I also don't want Mom to have to pay taxes and registration fees.)
I called my agent to get her added to my policy and was told, she would have to purchase her own policy. Because, I can't add someone who doesn't live in my household to my policy.
Is this correct? It seems silly that I would have to lose my multi car discount, as I would end up paying both premiums.
I am aware that any "permissive driver" should be covered, but it is my understanding that it only applies to occasional or in-frequent drivers, which doesn't really fit this situation.
We live in Kentucky.
Thanks for your time and attention.
I'd like to give my mother possession of the vehicle to drive at her pleasure. It would be garaged at her home and in her control. I don't want to have it registered in her name. ( Besides not wanting my siblings to have an ownership claim should something happen to Mom, I also don't want Mom to have to pay taxes and registration fees.)
I called my agent to get her added to my policy and was told, she would have to purchase her own policy. Because, I can't add someone who doesn't live in my household to my policy.
Is this correct? It seems silly that I would have to lose my multi car discount, as I would end up paying both premiums.
I am aware that any "permissive driver" should be covered, but it is my understanding that it only applies to occasional or in-frequent drivers, which doesn't really fit this situation.
We live in Kentucky.
Thanks for your time and attention.
Posted: Mon Aug 22, 2011 11:43 pm Post Subject:
Every insurer that I am aware of requires anyone who will have regular use of the vehicle to be a named driver on the policy, regardless of whether that person actually lives with you. Most every company I'm aware of will do this for you.
Does your agent know what he's talking about? I understand that you would prefer to NOT title the car in her name due to the concerns you mentioned. That being said, she obviously needs to be insured on the car if you're "loaning" her the car in perpetuity.
I would speak with the agent again, and let him/her know that "permissive use" isn't going to play here. That's only applicable for those persons who only use the car once in a while. Tell your agent that this is going to be a regular use driver and she needs to get covered.
She may be able to get a "broad form" type of policy, but that will NOT normally cover the damage she causes to the car- most will only protect against liability losses. This will insure her in any (most any) vehicle she drives, but will (again) not normally provide physical damage coverage.
InsTeacher 8)
Posted: Thu Aug 25, 2011 08:05 am Post Subject:
In my understanding, everyone who has frequent access to your car should be named in your policy’s drivers’ list.
That fact that your mother is not residing in the same household shouldn’t be a problem.
However, to be on the safer side, it might be better to get your mom a non-owners car insurance apart from enlisting her under your policy.
Posted: Fri Aug 26, 2011 10:17 am Post Subject:
That fact that your mother is not residing in the same household shouldn’t be a problem.
WRONG! The fact that Mom lives someplace else, even if only next door, is the reason Mom needs to have her own insurance. As a non-resident of the household, she is ineligible to be added to the OPs policy as a named insured. Her regular use of the vehicle is not covered under the "occasional use" provision of the OP's policy.
In the present scenario, Mom needs her own "Named Non-owner" personal auto policy.
The OP should also continue to maintain his own separate liability and property damage coverage for the same auto since he remains on title and can be held personally responsible for any damages caused by someone using his car with permission.
On the other hand, there is no reason the OP cannot gift the car to Mom, put the title in her name only, or in both "his or her" name [aka: JTWROS -- to avoid the sibling issue described above following Mom's death], and he may continue to pay the annual registration fees as an annual gift to Mom. Mom can then obtain a personal auto policy to cover the damage she does with "her" car. There are no tax implications when doing this. The OP would probably want to carry an umbrella liability policy to cover any personal liability as a named co-owner of the vehicle.
Add your comment