Question: My niece is 20 years old and she just got her first car. My sisters wanted to put her in their existing policy. But they are told that my niece must buy a policy on her own because the title deed is on her name. They live in New York. According to this agent they have been the vehicle title and auto insurance documents must match. The policy on parents name with her being the listed driver will not do (according to the agent).
She is working and living with her parents. Is there any discounts available to her because she was driving her parents car for couple of years as a listed driver. And is there any way around to allow her parents insure the car under their name?
Answer: To answer your last question; if the state require the car to be insured by the owner and she still want to use parents’ good driving records she could buy a joint policy with one of the parents. I don’t know if DMV would accept such arrangement or insist on the named insured to be on the vehicle registration as well. If that is the case they may need to change the ownership arrangements to include one of the parent as well. I don’t know the exact position but they would probably find a solution if they really want the arrangement.
However, this arrangement of buying a joint policy with an older and more experienced driver may be frowned upon, especially if only the younger driver is likely to drive the vehicle insured. You don’t want any artificial arrangement questions by the insurer. This could create headaches you don’t want especially after you have submitted a claim. Instead, it may be better to just add the older person on the policy as a listed driver and see if this will reduce the premiums. You can get car insurance quotes for various arrangements and see which one is best.
Alternatively, they could talk to current insurer of the parents and ask if they would offer some discounts for the daughter. Companies do offer multi-car (or additional car) discounts to family members. She is family and she still lives with parents. It is important to stress here that a little discount offered by the parents’ insurer may not be enough.
There may be other automobile insurance carriers who are happy to offer much better deal. Therefore, you should always get alternative quotes before making your mind. She is likely to get a little discount from a new insurer since she isn’t a new driver anymore and have already been driving parents’ car under their policies. Generally, you are asked about the policies you have had in the past and checked if you currently have a policy under your name. But you should mention that you have been driving your parents car. This should get you discounts and size of that discount will depend on the company that is giving the quote.
Another way of saving money is to drop the daughter from parents policy since she has own auto and insurance. There is no point keep paying for her when she wouldn’t be driving parents’ automobiles.