Can the car insurance be in your parents' name?

Answer :
Whether you live in the same residence as your mother or not, you bring up an important issue when you say "we're thinking this will be the most inexpensive way for me to drive."

Most carriers will allow your mother to carry insurance on both the vehicles, though there could be a problem if you live in a separate residence and keep the old car there. However, all carriers would require that you be listed as an insured driver, particularly if you're the main driver of your mom's old car.

Not adding you to the policy, and then admitting that you thought it would be the most inexpensive way to drive, is essentially material misrepresentation. Your mother pays for herself as a driver, but her rates wouldn't have you factored in. Most insurance carriers would promptly deny coverage in such a scenario if you were to have an accident. Of course, most people wouldn't admit that they were just trying to save money, which of course is insurance fraud (difficult to prove, but a mess when it is).

So, have your mom add you to her policy. Her rates may go up, but in the end, it probably is cheaper than you buying your own policy. It would be best for her to maintain ownership of her old car, as well, to avoid confusion about what a covered vehicle is.


Answer :

Insurance companies now use the term "household". As long as the child (married or unmarried of driving age) lives in the same house as the parent, he or she is considered a household member, therefore needing to be in the policy. The only way to exclude a household member (of driving age) from an auto policy would be for the following reasons:

1. That person has his/her own insurance policy. 2. Never been licensed

Insurance companies usually deny excluding a spouse from a policy, unless a divorce decree has been issued.