Buying Car-non Relative Driving

Chico898

New Member
4
For Economic reasons, a friend wants me to purchase their car, but allow them to remain the primary driver.

Can someone help me with the insurance/liability issues this may cause?

I can put the car under my policy, no problem. But what liability does that NOT cover for this other person not driving?

Does auto insurance cover the liability for anything the car is responsible for, or does the insurance cover the Person?

Right now, they have insurance, but also for economic reasons, they want to cancel that.

Example
My car, with insurance. The driver is a friend without insurance. Friend is driving and gets into an accident. What am I, as the car owner liable for? (just assume normal collision, deductible and uninsured motorist on my policy)


And...what is this person does have some sort of policy that covers them driving, just not a specific vehicle?

Thoughts?

Thanks for the help!
 
There are specific reasons I don't want to talk to my agent about this, that is why I came here. You are just going to have to trust me.

Anyone?
 
I would have them purchase a policy and have them exclude you from it.

The reason that I would not recommend you use you policy is that unless he is part of your policy he will not be covered or coverages will be reduced when he is driving.
 
You really need to talk to an attorney. They can give you several reasons not to do it. For example they hit and kill someone. You owned the car and will be involved in the lawsuit.

Can you do it yes. Buy the car, Title and Register it and list him/her as a driver. You may also go as far as listeing them as a named additional insured. Warning it is just like a marriege now they have all rights as you do on the policy, so in six months you want to remove them they have to sign off to be deleted.

Again there are so many reasons not to do this. Heck if you want to help them out just give them the money up front at least it is a known how much you are going to lose.
 
What state are you in? The state insurance regulations are more likely to determine it than anything else, an attorney might not be much help. Why do they need to be the primary driver? You should just by your friends car and put them on the policy if you're going to be living together (which you may or may not). Usually whoever is driving the car will be at fault for the accident but if they don't have any insurance then whoever has the car insured will be the one who will have their insurance pay for it. If your friend was in an accident the policy should cover them, but they might get upset if the friend wasn't listed on the policy. In that scenario it would probably raise your insurance rates too even though you weren't the one driving.
 
You really need to talk to an attorney. They can give you several reasons not to do it. For example they hit and kill someone. You owned the car and will be involved in the lawsuit.

Can you do it yes. Buy the car, Title and Register it and list him/her as a driver. You may also go as far as listeing them as a named additional insured. Warning it is just like a marriege now they have all rights as you do on the policy, so in six months you want to remove them they have to sign off to be deleted.

Again there are so many reasons not to do this. Heck if you want to help them out just give them the money up front at least it is a known how much you are going to lose.

I'd listen to this guy. Especially the third paragraph.

You want to risk your entire financial future on your friend who seemingly can't afford to own a car? Car insurance rates are based on credit scores now as people with poor credit tend to be poor risks. I don't know if your friend is a poor credit risk but if he needs you to buy him a car that might be a clue he has trouble managing credit.

I doesn't matter what the insurance laws say, if your friend has an accident in the car titled in your name you will be brought into the lawsuit. Give your friend the cash if you must.
 
Thanks everyone for the replies. It is an unusual situation and its for a friend of my wife, so I gotta ask the questions! My own opinion is not always good enough!! ;)
 
I'm not sure there's liability on your end if he gets into an accident just because you own the car as long as he's an eligible driver on your policy.

If my wife downs a six pack and runs over nuns crossing the street that's on her. No one can come after me just because I own the car.

Here's the risk; if you find a way to get him onto your policy and he gets into an accident your rates could go up or your policy could get canceled. That's more risk than I'm willing to take for a friend.
 
If my wife downs a six pack and runs over nuns crossing the street that's on her. No one can come after me just because I own the car.

We even have attorneys on this board. I didn't know. And our attorneys better have massive amounts of E&O insurance if they are giving really bad advice.


:swoon:
 
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