Insuring someone else's car?

jenna8984 · October 2014

So I'm hoping someone here maybe works in insurance and can give insight. My brother asked me if I will register and insure a "weekend" car in my name for him. Just a little used convertible that he intends to pick up from his dealership for a few thousand dollars, nothing expensive. So it would not need full coverage on insurance, just the kind that covers the other person's car/medical in the case of an accident.

My brother would prepay the year for insurance, and he always pays his bills so I don't have an issue with anything monetary here. The reason he is asking me is because he has a terrible driving record resulting in outrageous insurance prices. So my question is, if he crashes this car, would it affect me and my insurance rates? My husband seems to think that no, the points would go against the driver. But we are just not sure.

plainjane0415 · October 2014

jenna8984 said:

So I'm hoping someone here maybe works in insurance and can give insight. My brother asked me if I will register and insure a "weekend" car in my name for him. Just a little used convertible that he intends to pick up from his dealership for a few thousand dollars, nothing expensive. So it would not need full coverage on insurance, just the kind that covers the other person's car/medical in the case of an accident.
My brother would prepay the year for insurance, and he always pays his bills so I don't have an issue with anything monetary here. The reason he is asking me is because he has a terrible driving record resulting in outrageous insurance prices. So my question is, if he crashes this car, would it affect me and my insurance rates? My husband seems to think that no, the points would go against the driver. But we are just not sure.

Since I don't know where you are located, I don't know what your state insurance laws are, so I'm going to give my best general advice. If the car is registered in your name, then you can carry the insurance on it. If he is going to be driving the vehicle regularly, then he will need to be added to your policy as a driver. If he wrecks the car, gets a ticket etc, it will raise your rate. So technically you can do it, but that's a huge liability given his current driving record. Are you sure you want to do that?

flyingfoxes · October 2014

My first instinct would be that yes, it would raise your rates, because it would be YOUR insurance paying out. It would be worth asking your agent for sure though.

cupcait927 · October 2014

I have very little knowledge on this but I do know that my sister's terrible driving record as a teen/young 20-something caused State Farm to kick our entire family off their insurance - my dad was the policy holder. So I would think that yes, if something did happen it would affect your insurance but I'm not entirely sure.

jenna8984 · October 2014

No, I'm definitely not sure I want to do it, which is why I'm trying to find out some answers before I even answer him.

I think he doesn't intend for me to add him as a driver....like he will just say he's borrowing the car from me if he got pulled over. Is that illegal? I mean people borrow each other's cars.

beethery · October 2014

Would you be telling the company that you'd be driving it, even though your brother would be the driver?

pinkcow13 · October 2014

I think it would be illegal to do that. I work in life insurance though, so I could be totally wrong lol.

beethery · October 2014

I read your OP over again and it reads like your brother is asking you to participate in insurance fraud on his behalf for his benefit. I wouldn't do it.

etf: brain don't like words today.

plainjane0415 · October 2014

jenna8984 said:

No, I'm definitely not sure I want to do it, which is why I'm trying to find out some answers before I even answer him.
I think he doesn't intend for me to add him as a driver....like he will just say he's borrowing the car from me if he got pulled over. Is that illegal? I mean people borrow each other's cars.

It's not illegal, but everything falls back on you if something happens. And if this happens more than once and the insurance company catches wind of it, they will cancel you.

lovedryn · October 2014

Not sure about you area, but where I am, you would need to add the other driver to your policy. Any accidents / tickets would go against your policy and could raise your rates. If you decided to go with the "borrowing" the car option, alot of insurance companies will not cover other drivers not on the policy or will fine you for any infractions the other uncovered driver commits.

I wouldn't do it. Its dancing dangerously close to the insurance fraud line.

levioosa · October 2014

I'm not 100% positive, but I'm tempted to say yes, this would affect your insurance if something were to happen. Not only that, but you are opening yourself up to liability if your name is anywhere on his car.

Ex. My brother was an idiot. He drove drunk and crashed into a pole with his girlfriend's car. He wasn't even living with my parents permanently at the time, he was over 18, AND we had never had him on our State Farm insurance to begin with. His girlfriend's insurance still tried to go after my parents and State Farm almost dropped us, just for being related. We had to sign all sorts of paperwork saying that he would never drive any of our cars, even as a member of the family. It was terrible. His girlfriend had millions in hospital bills, because she was DOA and they brought her back; she spent 4 months in the hospital. It was a terrible ordeal.

After that I have my own insurance, and I upped my limits to the highest possible. I'll never be so stupid as to drive drunk, but if God forbid something were to happen and a passenger in my car was injured, I want the highest coverage possible.

lurkergirl · October 2014

This sounds extremely sketchy. Honestly, I would be pretty annoyed if my brother ever asked me to do something like this.

luckya23 · October 2014

This sounds like an absolutely terrible idea to me.

If you don't have enough insurance coverage, they can come after your personal assets, especially if he hurts someone.

I would never do it.

And I believe if your insurance pays out, it goes against your rates. I've had several no-fault incidents (my car was stolen and other glass only damage claims) and they still raised my rates.

sarawifenow · October 2014

Yeah I would run from this. Too much liability for my liking.

pinkcow13 · October 2014

beethery said:

I read your OP over again and it reads like your brother is asking you to participate in insurance fraud on his behalf for his benefit. I wouldn't do it.

etf: brain don't like words today.

Yea, I thought of fraud too. I kinda looked at it like asking someone to pee for you when applying for life insurance. If the insurance company gets wind of it I think they would drop you.

plainjane0415 · October 2014

levioosa Your points are so right on target. It's a huge liability for the OP to do something like this. Because if something terrible happens, insurance companies will find ways to get their money back. Great advice.

sarahufl · October 2014

There is a reason he can't get insured.

No way would I participate in this. In fact, I would not let him ever drive anything with my name on it.

penguin44 · October 2014

If someone with a terrible driving record wanted anything to do with my insurance I would say no in a heartbeat.

abbyj700 · October 2014

jenna8984 said:

So I'm hoping someone here maybe works in insurance and can give insight. My brother asked me if I will register and insure a "weekend" car in my name for him. Just a little used convertible that he intends to pick up from his dealership for a few thousand dollars, nothing expensive. So it would not need full coverage on insurance, just the kind that covers the other person's car/medical in the case of an accident.
My brother would prepay the year for insurance, and he always pays his bills so I don't have an issue with anything monetary here. The reason he is asking me is because he has a terrible driving record resulting in outrageous insurance prices. So my question is, if he crashes this car, would it affect me and my insurance rates? My husband seems to think that no, the points would go against the driver. But we are just not sure.

Okay...he's buying this car from a dealership for a few thousand dollars and wants you to put it in your name and insure it for a weekend? Am I reading that right?

emmaaa · October 2014

I can't remember what sate you're in, MA maybe?, but in NC the vehicle has to be registered in your name for it to be on your insurance and then you would add him as a driver to cover anything if he got pulled over or in a wreck. It is not illegal for someone else to drive a car on your insurance or in your name though. I drive a car that is in FI's name because he bought it, but I'm listed as a driver on the insurance. But I also have a car in my name we can't put on his insurance because it isn't in his name.

This gets into fraud territory because he wants the car in his name but on your insurance for a better rate, yeah that's illegal. It seems like there is a reason his insurance premiums would be so high and I don't think I would want to take the risk. That's a huge risk for you! I would also tell him since he was the one to cause his rates to be so high, he needs to take responsibility for that and pay the rate that he earned himself.

theartistformerlyknownas · October 2014

Tell him not only no, but hell no. His actions (being a shitty driver) have consequences (not being able to have a fun "weekend car" legally in his name). Suck it up and learn from your mistakes, bro.

beethery · October 2014

lolo883 said:

Tell him not only no, but hell no. His actions (being a shitty driver) have consequences (not being able to have a fun "weekend car" legally in his name). Suck it up and learn from your mistakes, bro.

This. For real. His insurance costs a lot because he drives like a dink. That's his own fault.

jenna8984 · October 2014

@abbyj700 He is a car salesman so I meant he would be buying the car from his own dealership for a good, cheap deal. He would drive it in the summers here, not the snow in the winters. He has a daily driver but I'm not entirely sure if it's insured under his name or his wife's. His wife may not have a good record either if he's asking me.

Thanks everyone, really great advice. I will back away from this situation, as I really don't want anything messing up my record or insurance or possible liability. @levioosa 's story is really scary and I wouldn't want my name anywhere involved if he were to get another DUI or god forbid hurt anybody.

kaos16 · October 2014

I look at if from a legal standpoint as well as an insurance one. God forbid there is an accident and someone is hurt badly. . . . .often times there are ways that an injured person, or the family of someone who dies in an accident can try to go after someone personally above and beyond their insurance limits. . . . . I think you could find yourself in that position, and it could be costly.

I do not think that this idea is worth the risk, and frankly I think it's shitty of your brother to put you in this position.

levioosa · October 2014

jenna8984 said:

@abbyj700 He is a car salesman so I meant he would be buying the car from his own dealership for a good, cheap deal. He would drive it in the summers here, not the snow in the winters. He has a daily driver but I'm not entirely sure if it's insured under his name or his wife's. His wife may not have a good record either if he's asking me.

Thanks everyone, really great advice. I will back away from this situation, as I really don't want anything messing up my record or insurance or possible liability. @levioosa 's story is really scary and I wouldn't want my name anywhere involved if he were to get another DUI or god forbid hurt anybody.

Jesus. If he already has a DUI don't just back away, run away fucking screaming. He has to put his big boy pants on and accept responsibility for his actions, not pawn it off on you.

beethery · October 2014

jenna8984 said:

@abbyj700 He is a car salesman so I meant he would be buying the car from his own dealership for a good, cheap deal. He would drive it in the summers here, not the snow in the winters. He has a daily driver but I'm not entirely sure if it's insured under his name or his wife's. His wife may not have a good record either if he's asking me.

Thanks everyone, really great advice. I will back away from this situation, as I really don't want anything messing up my record or insurance or possible liability. @levioosa 's story is really scary and I wouldn't want my name anywhere involved if he were to get another DUI or god forbid hurt anybody.

Another DUI? Yeah, no. You do not need to do this for him, his insurance is expensive for a reason. What's he going to want you to do next? Get him a spare copy of your license so he doesn't have to pay for his SR-22?

emmaaa · October 2014

levioosa said:

jenna8984 said:

@abbyj700 He is a car salesman so I meant he would be buying the car from his own dealership for a good, cheap deal. He would drive it in the summers here, not the snow in the winters. He has a daily driver but I'm not entirely sure if it's insured under his name or his wife's. His wife may not have a good record either if he's asking me.

Thanks everyone, really great advice. I will back away from this situation, as I really don't want anything messing up my record or insurance or possible liability. @levioosa 's story is really scary and I wouldn't want my name anywhere involved if he were to get another DUI or god forbid hurt anybody.

Jesus. If he already has a DUI don't just back away, run away fucking screaming. He has to put his big boy pants on and accept responsibility for his actions, not pawn it off on you.

YEP! My dad got a DUI about 5 years ago and paid his high insurance rates for at least 2 years like a big boy.

jenna8984 · October 2014

Yea, the DUI was a few years ago and his lawyer faught it and got it taken off his record or something. Which I don't agree with- if you were driving drunk, you were fucking driving drunk. you shouldn't be able to pay someone $5,000 and make it go away. It was a few years ago before he was married/ had kids so I'm confident he won't get another at this stage in his life, but I still want no part of anything to do with his driving as you all have expertly recommended!

Liatris2010 · October 2014

I just renewed (and thus reread) our car insurance policy and it states very clearly that any drivers in the household must be listed, and that the drivers listed are the primary drivers of the vehicles insured. Since you would not be the primary driver of your brother's car, you'd have to a) find a policy that didn't say that b) lie or c) have your brother listed. And anytime I've shopped around for car insurance, they always ask who the primary driver of each vehicle is. I would not be comfortable lying on an insurance policy. It means they could decline to pay out and drop you. Not worth the trouble, sorry bro.

jenna8984 · October 2014

So when I told him the reasons I wasn't going to do it, instead of saying "wow you're right, that's understandable" he argued with me then said "fine, whatever!"

Proves yet again that he only cares about himself.

levioosa · October 2014

jenna8984 said:

So when I told him the reasons I wasn't going to do it, instead of saying "wow you're right, that's understandable" he argued with me then said "fine, whatever!"
Proves yet again that he only cares about himself.

Ugh, I'm sorry. I totally know how that goes. At least you can sleep easy knowing you won't be reamed for his stupid mistakes!

Insuring someone else's car?

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