Insurance, having it under your parent's name?
 

So I'm in the market for a 350z...I have never owned an expensive car...and my next car will have to be paid for by me (insurance, car payment)

So I was talking to a few people about how much they pay for their insurance...and some of them threw me some cheap numbers (despite them being young)...I asked them what the deal was? And they told me their is insurance under their parent's name...then they just paid their parent's cash, under the table...

Does anyone else on this board use this method? I'm only 20 and plan to get a Z by the time I'm 21...my record is clean...but I'm DAMN sure the insurance will be as high as a sky scraper...will this method be my best bet? in terms of keeping my overall payments on the car down, and more money for mods? :icon44:.... I'm sure my dad can score a good deal for full coverage brand new 350z insurance...since hes old as heck...and has a clean record, married...etc..all the good stuff to keep the payments low

I was listed under my parents insurance for a while. I was listed as a driver for all of the cars, including my car. It was alot cheaper than doing it on my own. When I turned 25 I got my own policy. Still not cheap, but alot cheaper than it would have been before the age of 25. Do you still live at home? It should be ok.

It will work. There's a few catches though...I believe you have to be in college and (or) under 25 to remain on your parent's insurance policy. That will probably vary from company to company a little. While your insurance may be cheaper your parents as a whole will increase. Granted you're paying the difference but, it's still an increase for your parents policy. If you were to get in a wreck their policy will skyrocket.

I was on my parent's insurance policy until I was 22 and out of school. They were glad to get rid of me as was I glad to get off their policy. The whole responsibility thing.

My opinion...it's a good idea for you, bad idea for your parents.

When I had insurance on my own= $250.00
Now I have insurance under my dad's name=$103.00

Yeah I still live at home...and yes I currently attend community college...so I should be able to qualify...thats assuming if the parent's say yes?

Heres another thing worth mentioning...our whole family is under a family plan (4 cars and 4 drivers all insured)...but we only have liability...is it possible to add my 350z onto the list...but make that one FULL coverage? I certainly don't want to have libaility with my first "real" car...and I'm willing to pay the premium....but will that mean my dad has to convert all other cars to full coverage as well? I hope its not much of a hassle...I mean, I just want my dad to get the insurance under his name...and I pay him every month...and just call it a day

Generally if you live at home, and the car is registered to a parent, you can get on the policy as a part time driver. It is a money saver, but has a potential drawback.

If you have a serious accident, the first thing an insurance investigator will do is determine if the policy is valid. If the investigator finds that you are the primary driver, the claim may be denied. Say you have a two car accident. Your $30,000 car is totaled. The other $30,000 car is totaled. Someone is injured and medical costs are $100,000. The other party sues your parents for $130,000. And have no car. Is it worth it?

so this whole "insurance under parent's name" will not qualify me for "FULL" policy coverage?

You misunderstand.

Liability and comprehensive coverage has nothing to do with who is the primary and who is the secondary driver. Generally the dollar savings comes because a minor is the secondary driver of one or more of the vehicles. If you are driving car #4 to and from school 5 days/week, then you are the primary driver. There is no significant savings.

well, what i meant was...if I end up getting insurance for my 350z under my dad's name...then I won't get the full benefits of the insurance only becuz I'm not the primary driver? (since i'm assuming the primary will be listed as my dad, even though he won't be driving it)...

i still don't fully understand your made up story that you posted earlier...i mean, isn't paying for insurance the whole purpose of paying for the accidents if it ever does happen?

im in family plan insurance and its really cheaper. its the car that has to be insured not the person.

So is the CAR under your name?

Because the Z is owned by me, but I'm planning on putting it under my "parent's insurance" tomorrow morning.

If worse comes to worse, hell I'd give the pink slips to mother (she will understand) to drop the insurance substantially.

Well the plan is...I go out and buy a 350z....they say my parents need to be there since they have to co-sign? I'm not sure...but I do have two credit cards fully paid for every month...ever since I first turned 18...but regardless...I'm planning to get the car...and having it under my dad's insurance...

ORIGINALLY, I was going to pay everything for myself...car payment, insurance etc...ALL under my name...but then talking to a few friends about my future plans, they say I should get my insurance under my parent's name...as it will save me a bundle...I NEVER KNEW about this...thats why I posted this thread, to ask if anyone else is doing this....and if there are any catches

Here's a really great idea!

Call your (your parents) insurance company/agent, and get some CORRECT answers.

bill

Also keep one thing in mind. If you get the insurance under your parents to save money. They becme liable for any accidentyou have. If you kill someone and they sue you and your parents your parents can lose everything if a jury awards more than your insurance coverage. Yes this means house, cars, bank accounts...ect. This is something to keep in mind.

Sorry If I missed something...as I am a newbie at this whole insurance thing...

but, what difference would it make if the insurance was under my name? Won't I be screwed either way, if I accidently kill someone in a car crash?

Absolutely, totally FALSE.

Like I said, if you want some CORRECT info, talk to your insurance provider.

Do NOT rely on "message board gossip" for legal, insurance, etc. info.

bill

LOL, well thanks for letting me know...I'll just go straight to my parents and ask them if they know anything about it...I just wanted to ask the boards first...hoping that alot of kids my age are doing the same...and gettin advice from them

Don't take this the wrong way...but, if you're having doubts of being able to afford the car. And by affording the car I mean ALL the costs, not just your monthly payment on the loan. If you're having doubts, then don't buy it. If you're relying on your parents for insurance help the next step is payment help...maintenance help...and on.

Again...not trying to flame.

Unfortunately, you will be getting advice from people who know no more than you do...but they like to give advice anyway.

Your parents will not be responisble for accidents you have...they go on your record and your record alone.

having your parents as the primary and youreself as the secondary will lower your rates by a good amount

having two cars helps too, having three or more usually raises the rates

when i bough my Z my payments would of been 350 a month(the irony ha!) anyways with my mom as the primary i only pay 197 for two cars.....not bad at all.