Ownership Concerns
A few years ago, I had a $407 bill that I couldn’t pay, so I ended up buying one of my parents’ cars. It remained in their name, and they never questioned anything about the ownership. I simply told them I wanted to switch cars on my insurance, and I’ve been driving it that way for six years. Now that I’m looking for a new place, I’ve been informed that the car needs to be in my name for it to be insured.
Was it ever permissible to drive someone else’s car under my insurance, or was this just a misunderstanding? Additionally, I’m trying to set up a different car under my name, but when they request details about my previous car, could this cause complications for me? If so, how can I address these issues?
It sounds like you’re navigating a complicated situation with the car ownership and insurance. Here’s a breakdown that might help clarify things for you:
Driving Someone Else’s Car: Generally, you can drive someone else’s car under your own insurance policy, but it’s important that you have permission from the car’s owner. Since the car was technically still in your parents’ name, any issues related to the insurance could arise if an accident occurred or if the insurer needed to verify ownership.
Ownership Documentation: Since you’ve been driving the car for six years, it might not have been an issue until now, but it seems that your insurance needs to reflect the actual ownership. If you were to get pulled over or in an accident, having your name on the title could simplify matters significantly.
Getting a New Car: When you apply for a new car under your name, you’ll need to provide accurate information about your previous vehicle. If there is any discrepancy (like not being listed as the owner), it may raise questions but shouldn’t necessarily cause serious problems.
Solving the Issue: To resolve this situation, you might consider taking the following steps:
In doing this, you will likely avoid issues when setting up insurance for your new car and ensure everything is properly documented going forward. Good luck!