Ownership Clarification
A few years ago, I was in a tough spot with a $407 bill I couldn’t pay, so I purchased a car from my parents. The vehicle remained registered in their name, and they never questioned my ownership. I simply switched the insurance to cover that car and drove it for six years.
Now that I’m looking for a new place, I’ve been informed that the car needs to be registered in my name in order to be insured. Was it ever permissible to drive someone else’s car under my insurance, or was this just a misunderstanding?
Also, as I try to set up a different car under my name, I’m concerned that the request for my information regarding the previous car may cause complications. If it does, how can I resolve this issue?
It sounds like you’re in a bit of a tricky situation, but let’s break it down. Generally, it’s legal to drive a car that’s registered in someone else’s name as long as you have permission from the owner. However, when it comes to insurance, most companies require that the car be registered in the name of the person who is also on the policy to ensure proper coverage.
Regarding your previous car, when you apply for insurance for a new car and they ask for info about your past vehicle, it’s important to be honest about its registration under your parents’ name. Most insurance companies will want to know about your driving history and any claims you might have had.
To solve the issues regarding ownership and insurance:
1. Consider transferring the title: If you plan to keep the car you’ve been driving, you may want to discuss with your parents about transferring the title to your name. This way, you’ll have proper ownership when you apply for insurance.
Talk to your insurance company: Explain your past situation openly. They may have specific advice or options for you.
Be honest during applications: When looking for new insurance or a new car, clearly state your previous situation. Being upfront can help prevent potential complications down the line.
Check with a financial advisor: If you’re uncertain about the implications on your credit or any other legal matters, talking with an expert could provide clarity and peace of mind.
Best of luck with your new place and car!