Buying a car and insurance through my Aunt. Is it possible?

[DesperateNeed]

What is the name of your state?What is the name of your state? New York

She already has a car and insurance.

If I can put both my car and insurance in her name, what happens if I get into an accident? Does HER car's insurance premium go up too? Or just the premium on the car I'VE bought (the car will be paid in full btw)?

Also, can I even be added to "my" car's insurance since she's my Aunt, not my parent?

I'm a new driver (just got my license two days ago), 24 years old now, but will be 25 by the time I'm ready to buy the car (in 3 months). I've been shopping around for insurance companies and have found most of them TOO expensive here in NY with my 'assigned risk' (as much as &6000/year).

Thanks in advance.

 

[jity]

What is the name of your state?What is the name of your state? New York

She already has a car and insurance.

If I can put both my car and insurance in her name, what happens if I get into an accident? Does HER car's insurance premium go up too? Yes

Or just the premium on the car I'VE bought (the car will be paid in full btw)? Only the premium, does not matter if car is paid for - it still has value if you elect this type of insurance

Also, can I even be added to "my" car's insurance since she's my Aunt, not my parent? Some Ins. comp. will allow this you will have to ask the insurer

I'm a new driver (just got my license two days ago), 24 years old now, but will be 25 by the time I'm ready to buy the car (in 3 months). I've been shopping around for insurance companies and have found most of them TOO expensive here in NY with my 'assigned risk' (as much as &6000/year).

Thanks in advance.

Either way you look at it her insurance is going to go up with you, if they allow it. You should really understand what you’re asking your aunt to do for you. She can be held FINANCIALLY responsible for your future mistakes should you have an accident.

 

[DesperateNeed]

Thanks, but that's a shame. I was hoping only the insurance I was paying for would go up. Does her insurance still go up if I'm listed as the primary driver? btw, regarding any financial responsibility. I would be paying for any damages.

Thanks in advance

 

[teflon_jones]

First of all, insurance rates are set at the discretion of each insurance company. on a case by case basis, so it's impossible to give a definite answer on what will happen. But I'll do my best to describe what will likely happen based on my experience. If you're listed as the primary driver on a policy she has, it will probably cost the same as if you had your own policy. If you're listed as just another driver on the policy, the it will likely cost the same or pretty close to it.

As for her not being a parent, it makes no difference if she's your mom, aunt, friend, boss, etc for adding you to her policy. Anyone can add anyone else to their policy 1) if they're willing to pay the higher insurance costs that will likely come and 2) if the insurance company will let them do it.

If you put the car and insurance in her name, then she's assuming a great risk. You stated that you're willing to take on the financial responsibility of anything that happens, but that assumes you'll have the money for it. Unless you have hundreds of thousands of $$$ lying around, then you don't have the money to mitigate her risk. Also, it will constitute insurance fraud if you're not listed on the policy for a car that you drive regularly. If something happened, and the insurance company found out you were the regular driver of the vehicle, they can deny coverage entirely.

So either pay what the costs to drive legally and safely, or don't drive. If you read through this forum you'll find many, many, many posts from people who cut corners like you're trying to do, and now they're in big trouble because something happened.

 

[DesperateNeed]

Wow, if it's going to cost (about) the same as me buying my own, I might as well just buy my own.

Thanks for the advice.

 

[DesperateNeed]

First of all, insurance rates are set at the discretion of each insurance company. on a case by case basis, so it's impossible to give a definite answer on what will happen. But I'll do my best to describe what will likely happen based on my experience. If you're listed as the primary driver on a policy she has, it will probably cost the same as if you had your own policy. If you're listed as just another driver on the policy, the it will likely cost the same or pretty close to it.

Hi again, I was doing more research on this question and ran across a messageboard post that details freakishly similar situation to mine:

I'm surprised you were able to get car insurance at all. I live in New York City and 90% of car insurance companies here require a minimum of 3 years driving experience to even consider insuring you. GEICO, Progressive, all these big guys wouldn't insure me. Even when I finally found an insurance company that would insure me they quoted me 6 grand a year! Yes you read right, 6 grand a years on a 1994 Taurus! Eventually I had my uncle register the car and be the primary insurance holder while I listed myself as the secondary driver. Now I pay $1,100 a year and hope not to get into any accident as the premiums will no doubt go up.

I suggest you list yourself as a secondary driver on the car you will drive and wait until you have 3-5 years of driving experience to insure the car solely in your name alone.

By the way, getting tickets does not help your insurance policy. It's only gonna make it higher. Insurance companies run underwriting reviews of each policy holder on regular intervals i.e. ticket history, etc. If they find you've been getting tickets they will assume you drive the car more often than your parents and will thus raise the premiums.

You should take it easy and learn how to drive first before trying to be Michael Schumacher

http://www.streetracing.org/boards/showthread.php?t=63651#14

The bolded sections are what caught my eye. I realize the posting is over 2 years old, but basically the only differences between my situation and this poster's is the relative and car (I'm looking to purchase a '98/99 Mazda Millenia). And even if I have to pay $2-3k/yr, I'll be satisfied. $5-6 is an impossibility. My Aunt rarely drives her car, and I mean rarely. I'm talking once a month, if that. So even should I get into an at-fault accident, wouldn't it be easy to prove that she IS the primary driver, since her own car is hardly used?

Thanks in advance.

 

[justaninsured]

I know you're focused on how much it's going to cost you now for insurance but what teflon jones is trying to tell you is that if you have a serious accident that is your fault and the people you injure have claims that are over your policy limits, they will go after you (the driver) and if you don't have enough to satisfy them, they will go after your aunt's assets (as the owner and policy holder). No one ever plans on having an at fault accident but it does happen. If you go the route you are thinking about, just hope it doesn't happen to you.

 

[stephenk]

is the car going to be garaged at your aunt's house? If no, then the rates are going to be set based on your address not hers.

Since you are not living with your aunt, the carrier isn't going to give you a break in premiums.

 

[DesperateNeed]

I know you're focused on how much it's going to cost you now for insurance but what teflon jones is trying to tell you is that if you have a serious accident that is your fault and the people you injure have claims that are over your policy limits, they will go after you (the driver) and if you don't have enough to satisfy them, they will go after your aunt's assets (as the owner and policy holder). No one ever plans on having an at fault accident but it does happen. If you go the route you are thinking about, just hope it doesn't happen to you.

Really hard to admit , but I guess you guys are right. I'd hate to put her in that sort of predicament.

stephenk: I can just say it'll be garaged at her house. A guy I work with does it for his half-sister. He lives in PA and she in NYC. Both my Aunt and I live in NYC.