Car insurance question?

I got a loan for a car and cosigned it with someone but the vehicle registration is in my name and my question is can that person have insurance on the vehicle instead of me?

Best Answer:

Obi Wan Knievel: Nope, don't do that. I know exactly what you're thinking, and it's a bad plan.

Lemmy guess: You just found out what it will cost to insure this thing, and it'll be a whole lot cheaper if the insurance company thinks someone else owns / drives it, right? Of course I'm right, because that's the only reason anyone would ask your question.

And don't do it. Don't even do a name-switch on the registration and then do it, because all the insurance companies know that trick and they have several ways to beat it. You're not the first to think this up, not even the first this week.

Insurance companies don't ask questions they can't look up the real answers to, ever. They do that for a reason, and you can probably guess what that reason is. They also know that the truth always comes out after an accident, no exceptions. Even if you fool an insurance company for a few years, when the truth comes out they get ugly.

You call it cleverly re-arranging the technical details to save a few hard-earned bucks, but that's not what the insurance company calls it. They call it misrepresentation (the legal word for lying) or non-disclosure (lying by omission), and it voids the whole contract. That's a clause written into the policy wording, and they use it when the truth comes out. And the truth always comes out after an accident, every time.

You've heard those horror stories about people who bought a car and made all their insurance payments for months or years, and then when an accident happened the insurance company used some technicality thing to weasel out of paying for the damage? Those stories are true, and the technical thing was the misrepresentation clause.

Insurance companies didn't get that big and old by taking everyone's word for it.

Other answer:

Obi Wan Knievel:
Maybe but only If the person has an "insurable interest" in the car. I don't think though, that merely co-signing on a loan qualifies as having an "insurable interest".

HOWEVER…. More important. If you will be the principal driver of this car, even if the other guy can buy the policy, he MUST list you as the principal driver and as such the premium will be based on YOU and not on him so you gain nothing by having him insure it. Also………..The lender is not going to allow someone else insure the car That is in your name and upon which they have a lien on.
I think you are doing some wishful thinking at best and are close to insurance fraud.

………..NEVER lie to an insurance company……NEVER !

STEPHEN:
You need to ask the insurance company. Different companies will accept different things.
DO NOT be tempted to try and insure it in someone else's name to get lower insurance. That's called "fronting". It's fraud, it's illegal and, most importantly, it voids your insurance.
lucy:
Poster Obi summed it up. When you lie on the application, it is called misrepresentation, thus VOIDS the insurance, and if in an accident, thus in "effect" not insured.

Your car, so you must be listed as the driver and "rated" as such.

The easy way they find out, is that in an accident and find out you are driving and ask "who are you", thus they find out you lied.

rick29148:
Anybody can pay for the insurance on your car. But, the car is still yours… The name on the title IS the car's owner.
B:
Yes, in fact anyone can have insurance on it. The vehicle is insured not the driver.
Hillbilly OJ:
Who's driving it? That's who has to have the insurance.
Happy Gramps:
INSTEAD of you ??? why ??? if the vehicle is registered to you and you drive it, then there's no need to have anyone else on the insurance….sounds like a scam operation to me !!!
Never:
Both need to remain insured.
KayleenR:
Yes you can name that person as the principal driver

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