Transferring My 70-Year-Old Mother’s Car Insurance: Seeking Advice
My husband and I have been discussing the best way to handle my 70-year-old mother’s car insurance situation.
She has been widowed for a while, relies on Social Security disability, and has several chronic health conditions, although they haven’t yet affected her driving ability. She still drives around her small hometown, which is about eight hours from where we live. Since I’ve started managing her finances as her power of attorney, my goals are to help her pay off her small amount of credit card debt and to have a clear understanding of her finances in case she faces any medical emergencies.
My mother owns a 2013 Ford Fusion that is paid off and still runs well, though its value has likely decreased over time. We’ve talked about me “purchasing” the car, so the title would be in my name, but she would continue to keep it at her home.
My main concern is car insurance. My husband and I have excellent rates with our Progressive policy, thanks to our clean driving records and good credit. My mother, on the other hand, has a mostly clean record but recently had a minor accident on her property that required some repairs. She paid her deductible, and while she said her rates didn’t increase much, she still pays about $100 a month for coverage with State Farm.
When I checked, adding the Fusion to my Progressive policy would only cost about $15 a month (this quote doesn’t include her being added as a driver). My husband is worried that adding her to our insurance could lead to rate increases due to her driving history or any future accidents.
For those who have navigated similar situations with elderly parents, what has worked best for you? Should we keep the car title and insurance policy under her name, or is it beneficial to transfer everything to ours? My goal is to save her money each month to help with her debt and medical co-pays, but I’m leaning toward keeping her as her own policyholder for her peace of mind and safety.
Another option is to send her a monthly “stipend” instead. Ultimately, I want to make the most cost-effective choice for the long term.
Also, I’d like to mention that my plan to purchase the vehicle now is to keep it in the family without needing to go through probate in case she passes away sooner rather than later.
I intend to speak with Progressive about rates soon, but I’m seeking any insights you may have.
Thank you!
It’s great that you’re looking out for your mother’s finances and well-being while navigating these complex decisions. Here’s a breakdown of some considerations that may help you make an informed choice:
Insurance Rates: Since you’re concerned about your current insurance rates potentially increasing if your mother is added, it would be wise to gather detailed information from Progressive about how adding her as a driver would affect your rates, especially given her accident history. Some insurance companies consider the driver’s record heavily, so it’s important to get clarity on that.
Keeping the Policy Under Your Mother’s Name: Keeping her policy under her name could provide peace of mind, as it allows her to retain her independence and the insurance company would not directly associate her with your policy. Additionally, if you do face any claims or issues, it limits the risk to your own policy’s premium. This route may also be beneficial if any claims arise since the accident history would remain on her policy.
Transferring the Title: Transferring the vehicle title to you could simplify the situation, especially in the event of her passing. However, if you do this, it would be prudent to discuss the insurance implications of having the title in your name with Progressive.
Stipend Option: If purchasing the vehicle or changing the title and insurance seems too risky or complicated, sending her a monthly stipend to help cover her insurance costs and any other expenses could be a good middle ground. This way, she maintains her policy while you can help her manage costs.
Cost Savings: If adding the vehicle to your policy is significantly cheaper and maintains her driving ability, it might make financial sense. However, ensure that you factor in the possibility of rate increases down the line.
Long-Term Considerations: Evaluate the long-term implications of each choice, especially concerning your mother’s health and driving capability. It’s worth discussing these scenarios with her to understand her preferences and comfort level as well.
Consult an Agent: Before making any decisions, consider consulting with an insurance agent. They can provide detailed insights specific to your situation and help you understand the best path forward.
Ultimately, the choice hinges on balancing your mother’s independence, financial benefits, and potential risks. It’s commendable that you’re putting so much thought into what’s best for her. Whatever decision you make, ensure that it aligns with her wishes and needs.