This is in MO U.S.A. I am paying for a car but my mother is paying for the insurance. She claims the title must be in her name to pay for the insurance. I think that's correct but she is not a very trustworthy person (or a good mother) I know a sibling of mine did something similar and at some point had some scandal with our mother that I can't remember. I just wanted a second opinion or some reaffirmation. Thank you!
Edit: Additional info: I'm 20M and have not purchased a car before. It's being paid in cash from a close friend. I'm unfamiliar with all of this (clearly).
Can you pay for insurance on a car if you are not on the title?
byu/Yahga2 inInsurance
Posted by Yahga2
5 Comments
she is wrong
Most companies will require it to be this way. It’s all about insurable interest. If she does not own the car then she does not have interest in the car and the risks for a loss can be greater. However there are companies that will still do it or agents that will not tell their company and if an accident occurs there can be issues.
My daughter’s car is in her name but I have the insurance policy in my name. But I’m in the South so not sure if it varies by state. If you have to add her to the title make sure it says “your name” and “hers”. That way she can’t sale or trade without your permission.
She’s wrong (or I suspect willfully lying to you).
Insurance is paid for by people not on the title all of the time. I understand where she is coming from as a person needs to have a “financial” interest in the vehicle in order to insure it. But that really just means the person needs to have a financial interest. If she’s going to pay the insurance, what would she do for you if the vehicle was a total loss? Would she perhaps offer some financial assistance? A parent paying insurance for a son/daughter happens all of the time. What a carrier should not allow is someone who does not have any ties to the vehicle at all getting insurance on it. That would really amount to gambling.