Posted: 2/9/2009 9:22:29 AM EDT
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I have a beater 1995 Honda Civic registered and insured in my name. My little sister has been driving the car practically full time, and is not named on my policy. It costs me $48 a month for full coverage on the car, but if I add her onto the policy it would raise the rate by %400. She has a good driving record, but is just a young driver.
My insurance covers myself, as well as any driver who uses the car with my permission, so she is effective insured on my policy. If she were to get into an at fault accident, I would have to pay the deductible, and insurance would cover both ends without adding a point to my driving record or increasing my rates. I guess the question is, is this legal? Should I add her to the policy for any kind of liability issues? Maybe if she got sued for an accident, they could come after me as the registered owner....? |
| Right now, no you are not commiting fraud. You can let anyone you want drive your car. However, if she has an accident and you lie to the insurance company about the details of her driving the car, that would be insurance fraud. They could decide she was not an insured under the policy and then you and/or your sister would be on the hook for any damage she caused. |
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It depends on who your company is and in what state your reside. If you were insured with the company I work for then if she is under 21 she needs to either be named or excluded from the policy. Otherwise, you are cheating the company. And yes, it is expensive to insure young drivers because they present a large risk.
ETA: To answer your question, without knowing all of the information it sounds like you might have a liability exposure that is not covered by insurance. Anyone injured by her using your car can come after you for damages. |
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Quoted:
It depends on who your company is and in what state your reside. If you were insured with the company I work for then if she is under 21 she needs to either be named or excluded from the policy. Otherwise, you are cheating the company. And yes, it is expensive to insure young drivers because they present a large risk. ETA: To answer your question, without knowing all of the information it sounds like you might have a liability exposure that is not covered by insurance. Anyone injured by her using your car can come after you for damages. SO do women drivers in general but they get cheaper rates then men. Go figure. |
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Your policy covers anybody driving with your permission...I'd assume she is, so no, you are not committing fraud... Just seems like there would be something in place that would prevent this from happening. What if I had a friend with a horrible driving record (DUI's, speeding tickets, etc) and his rates were through the roof? Could he just insure the car in someone else's name and "borrow" it frequently? Seems like a huge loop hole, but it makes sense I guess. |
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SO do women drivers in general but they get cheaper rates then men. Go figure. Accident rates tell a different story about men and women. Men (especially teenagers) are more likely to speed, drive recklessly, drive under the influence and hence get into more accidents and receive more tickets. Testosterone apparently causes worse driving judgment than estrogen. I was in 7 car accidents (4 where my car was demolished/not drivable) before I turned 21. Fortunately I walked away from them all without a scratch. I'm sure I caused most of the gray hairs on my parents' heads. |
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Here in Michigan, the principle driver that has the vehicle registered in their name is liable for damages the vehicle causes.
If your sister gets in a wreck that causes bodily injury to someone, you can be sued by the injured party for damages that insurance does not cover. For instance, if she wrecks the vehicle and someone requires lifetime health care, you as the registered owner of the vehicle are liable for these costs above the maximum liability your insurance policy provides. Don't put yourself at risk. |
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If she was involved in an accident, they will ask you AND her how often she drives.
my gf got into a fender bender with my truck, and after they questioned us, they added her to my policy WITHOUT ASKING. she may have drove it once every two weeks. we both had to sign an affidavit stating she would not drive my truck underANY circumstances. if i am bleeding do death and she rushes me to the er, any damages to my or any other vehicle would not be covered. |
| Most the time it come down to does she live with you, if she does and drives the car any, then yes fruad. If she doesn't live with you then she can drive it as much as you let her. Here they ask if there are any other drivers that live with you that will be driving the car. |