Is it possible to have a car financed and registered in my name while having the insurance in my daughter’s name?
(Edited to add: This is in NY.)
I work from home and hardly ever drive, so I’m stuck with very high insurance rates due to a recent lapse and previous accidents (I pay over $400 a month for my Subaru Outback). My daughter, however, is a 19-year-old college student who drives frequently.
I own a car that’s currently being financed and registered in my name, but my daughter is the one who uses it exclusively. Although her license lists her mother’s address, she actually spends most of her time at my place.
Can she take out insurance on the car in her name while I drop my coverage? Or would we need to change the financing and registration as if the car was sold to her?
I’m not trying to pull any fast ones—she really is the sole driver of the vehicle.
Yes, it is possible for your daughter to insure the car in her name while it is financed and registered in your name, but there are a few important considerations:
Insurance Requirements: Most insurance companies allow the primary driver of a vehicle to have the insurance in their name, even if the registered owner of the car is someone else. Since your daughter is the one using the car exclusively, she can typically be listed as the primary driver on the insurance policy.
Financing and Registration: You can keep the car financed and registered in your name while your daughter insures it. However, some lenders may require that the insurable interest (i.e., the person who is primarily using the vehicle) be the same as the person who holds the financing. It’s a good idea to check with your financing company to verify if they have any specific requirements regarding insurance.
Address Considerations: Since your daughter’s license lists her mother’s address, it should not be an issue as long as she primarily resides with you and the car is registered at your address. However, it’s best to ensure that her information on the insurance policy is accurate.
Cost Benefits: By having your daughter insure the vehicle, she may benefit from lower insurance rates due to her age and driving record, which could provide some financial relief compared to your current rates.
Communication with Insurer: When switching the insurance to your daughter’s name, it’s essential to communicate clearly with the insurer about the car’s ownership and usage to avoid any potential claims issues down the line.
Before proceeding, you may want to contact your insurance provider to discuss your specific situation and get advice tailored to your circumstances.