Do both the buyer and co-buyer have to be on same insurance policy even if one never drives the car?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

As the cosigner has a financial interest in the property, meaning if something happens to the vehicle he can be made to pay "All" the bills, Then he should certainly be insured on the policy for any loss regardless of whether he is driving it.

A cosigner is jointly and severally liable to the lien-holder for the full amount of the note and is probably required to be insured under the finance contract anyway. The cosigner if unlicensed and does not drive should at the very least be listed as a holder of interest in the lien-holder section so that they will receive notification from the insurer should the primary have any lapse in coverage.

The primary driver should also pay any additional premium required to insure the cosigners interest. After all, he was kind enough to co-sign so you could buy the car, the least you can do is make sure he doesn't wind up in the poor house should something happen to it.

Should the primary Driver / borrower refuse to insure the cosigners interest, it would probably be prudent for the co-signer to take legal recourse against the primary borrower before a loss occurs.
49 people found this useful
Ω

Is the co-signer the same as the co-buyer?

Answer . No. A co-signer is a person who guarantees the loan and a co-buyer is a person who has equal ownership and liability. An example is when a young married couple wants to buy a car but does not have good or sufficient credit or enough collateral for the loan. They might get one of their parents to guarantee payment of the loan by becoming a co-signer. If the couple defaults on the loan, the co-signer becomes liable. In this same case, the couple as husband and wife, sign the loan (co-borrowers) and the purchase document for the car as co-buyers, sharing equally ownership and primary liability..

Why do you have to add your child to your car insurance policy if they never drive your car?

\n. \nIf the child is a lisenced driver living in your household, the insurance company assumes that he will drive the car. It is possible to have an exclusion added to the policy (more likely to be the company's decision after the minor has had 3 or 4 claims) that states the child will not drive it. If you have this exclusion, there is NO COVERAGE IF THE KID IS DRIVING, so don't even let him back it out of the garage.\n. \n Answer \n. \nIn a nut shell, because they do not believe that the child won't ever drive the car, and actuarial experience bears out that they are right. Odds are that sooner or later most parents will let the child drive the car "just this one time...". As mentioned above, most states allow insurers to exclude an operator from coverage and thereby reduce the premium accordingly, but be aware that if the child is the operator in an accident of significant proportions, your financial life could be profoundly effected. In other words, if he/she seriously injures or kills someone, and you are found liable, well.... let's just say it won't be pretty. Think VERY carefully before selecting this option. If he/she is not living in your household (and has a legal address elsewhere but the car is NOT pricipally kept there), none of the above applies. As long as they are licensed and operating the vehicle with your permission (and do NOT do so on a regular and frequent basis), there would be coverage. \n. \n. \n Answer \n. \nYou are required to add a child to the policy because almost every policy is a family policy, in that every resident relative is covered to drive your vehicles contractually whether or not they are listed as an operator on the policy. See your Definitions section of the contract for 'insured driver'. What that means is that the company is legally on the hook for paying if they drive or not, so they are deffinitely going to collect the premium for it. A NDE (Named Driver Exclusion) is a possibility, but be warned: these are usually underwriting decisions by the company (We'll nonrenew you unless you sign this NDE for your son who has had 4 accidents in the past 3 years.) so if you ASK for an NDE and one is applied, it will still be considered generally as though the company asked you to have one when you want it to come off. In that the company may NOT WANT to take it off, may have some guidelines (no accidents/tickets in past 3 years for example) for when one can come off.

What happens if two people get in an accident and both people were driving borrowed insured cars but neither person was on the insurance policy?

%REPLIES%. Answer . Well in this situation, lets hope that both parties were licensed drivers, and they were not excluded from the policies of the vehicles in which they were driving. In most situations an insured can allow a driver to drive there vehicle, under the permissive use section of there policy. Permissive use simply states that a person can drive your vehicle on an occasion if they are not a family member from within your same household. 99% of insurance companies offer permissive use, so in most cases the drivers or the insureds have little to worry about.. Answer . Thank you for answering my question. ^_^\nUnfortunately, I know for sure that I was excluded from my boyfriend's policy but I'm not sure about the other person and the other car. It's been three weeks since my accident and no one from her side has contacted me in the last week and a half so I have no idea what's going on with her side. They sent me a claim form but I'm not filing a claim on them...does anyone know what happens next? I'm really confused. This is the first time I've gotten in an accident and no one's been very helpful so far (except you guys). Hopefully I can get some guidance...I'm not a very wealthy person and I don't want to end up paying more than I can for her car repairs. So if ya got any info I'd really appreciate it. ^_^\nThanks again!.

Can anyone drive your car without their name on the insurance policy?

Sure...BUT if they have a wreck while driving, YOU are stillresponsible for your end AND if they (your friend) sustain injuriesin the wreck they had in your car, YOU are responsible for that aswell. If they want to drive your car, it is best that they havetheir OWN insurance policy so if they do have a wreck, you arecovered from all ends. (not in all states and/or insurancepolicies) Rental companies do the same thing--they make sure youhave some kind of insurance--theirs or your own.

Can your friend drive your car if you are both insured?

\n. \n Cars are insured, not people \n. \nPeople are not insured. Vehicles are. \n. \nIn other words, it's not necessary for a vehicle owner to determine whether a potential driver is insured. The owner knows whether his car is insured. It is necessary, however, for a person who wishes to drive a vehicle to ensure that it is properly insured. I would not operate a vehicle unless I saw a valid insurance card for it.

If a full coverage policy is on both your vehicles and one car hits the other how does the insurance work?

\n. \n Answer 1, Insurance \n. \nIt can work out several ways. Most probable cause of action is for you to file a claim with your insurance, and then your insurance contacts the at-fault party's insurance for payment of damages. There are some companies that won't contact the at-fault party's insurance in which case you have to deal with the at-fault insurance company at all times. With that said, full coverage means your car is covered in case of anything. Collision covers your car whether it was your fault or not. If the crash was NOT your fault then the public liability part of the at-fault's insurance company will pay for the damages, not to exceed the property damage cap for the at-fault party's insurance. However, full coverage does include underinsured motorist coverage. What this means is if someone hits your car and causes $15,000 in damages, but the insurance caps out at $10,000, then the not-at-fault insurance can sue the at-fault driver for the additional $5,000, so make sure you have the proper limits and most important, BE CAREFUL OUT THERE!!!\n. \n Answer 2, The first answer missed one point \nBoth vehicles are on the same policy. There may be an exclusionary clause on the policy, but even if there isn't you can expect the insurance company to be VERY suspicious. If one car has been spending a lot of time in the shop with no improvement, one could easily back into it with another in such a way that it would be totaled and the good car would have only a few scratches on the bumper.\n. \n. \n Answer 3, Additional Info \n. \nAnswer 1 totally missed the question. Answer 2 appears to assume only that the struck vehicle was parked, and that the incident was not an accident, but may be fraudulent. Both assumptions are possible, but not exclusive. There are such incidents which are legitimately accidental, and insurance carriers prepare for this in their corporate policy. \n. \nWhen I was an auto property Claim Adjuster for a major insurer, many years ago, we investigated ALL claims, including consideration and elimination of the possibility of fraud. Where fraud was clearly involved, the policy contract was VOID, and the claim denied.\n. \nWhere two vehicles insured on the same policy were involved, the company policy was if the struck vehicle was covered for collision, the repair was paid for under it's own collison coverage, with the deductible waived \n. \nBy the way, this policy was also true for collision of two of our insured vehicles, owned and insured by different insureds and policys. This saved us the time and expense of investigating fault and laying blame on one or the other policy holder/customer. I suspect, that the company figured that since we were going to have to pay regardless of who was at fault, we could avoid alienating a paying customer due to determining him to be "at fault." \n. \nI worked many claims involving a single owner, with both vehicles insured on the same policy. All involved the struck vehicle being parked, mostly in a driveway, but a few were parked in the street adjacent to the driveway. \n. \nWe did have a few collision claims involving both of the "same policy" vehicles moving, but I never got one of those assignments. \n. \nIf the struck vehicle was insured by us, but did not carry collision coverage, we then paid the claim under the liability portion of the striking vehicle's coverage. And again, as a public relations gesture to the insured, we did not assign fault, or surcharge his future premiums.\n. \nThat has been a long time ago, and company policy may have changed. Also, insurance company policy did, and does, vary from state to state, depending on each state's insurance regulations.

If you sold your car but the buyer never registered it are you still responsible?

Answer . Most states require that the seller notify the DMV within a specified period of time that the car has been sold. If you do that, you should be relieved of all responsibility for whatever happens after the car is sold, whether or not the buyer registers it. If you haven't done that, you should do so without further delay.

Who has to have insurance on the car the cosigner or the buyer?

\n. \n Answer \n. \nYou insure a vehicle.\n. \n Answer \n. \nThe buyer. The only thing the cosigner is responsible for is paying the bank back the money it loaned if the buyer doesn't.\n. \n obvious \n. \nThe principal driver of the vehicle who should also be the buyer.

If you are the co-buyer cosigner on a car loan and not the registered owner can the lender come after you if the registered owner let the insurance lapse and totaled the car?

Answer . Yes, they can make you pay for the vehicile, When you signed the finance note you promissed to pay for it if the other buyer did not. You are both equally and severally liable for the promise note you signed.. Answer . Absolutely. As addressed in many other questions here concerning co-signing.. The very next thing you should do is take that paperwork, you know the ones with your signatures and initials all over it, and read it. See what you agreed to and what the responsibilities of the signers are. . The essence of which is, co-signing is virtually the same as signing for the loan. You have all the responsibilities of the primary signer (without the need for being on the title to the property) and stand in their place if they don't perform. What exactly did you think the meaning and need for you signing was for?

If you sold a car and they buyer never registers it are you liable?

Do you have any proof of sale? Did you turn in your registration?. Yup... you're still the registered owner.... But, . most states have something that a used-to-be registered owner can send in to a state's motor vehicle department to get off the hook. It is something like a "report of sale" or the like. Look in your state's department of motor vehicles (DMV) for particulars. All states have a DMV web site.. You probably surrendered your title to the vehicle when you sold it and got the cash. If you've filled out the proper DMV form correctly and been honest, you have a good defense. The new owner "failed to register" the vehicle, and liability can be shifted to him.. As always, consult a legal eagle if you get in a jam. They're usually pretty cheap, at least for an initial consultation. And they are the experts.

What if you are the buyer of someone elses car but you are not the driver of the car Do you have to be on their insurance even if you have your own insurance in your own car?

The most important thing is that the primary operator of the vehicle have insurance on the car. Do keep in mind that as the owner of the car you could be found liable for damage caused by your car, with that in mind you should request to be listed as an additional interest on the driver's insurance. This will allow you to be notified about changes/cancellations in the policy.

If my boyfriend bought a car and placed me as the buyer and he the cosigner. He is the primary driver and makes t payments. Do I have to be under that car's insurance even if I have my own insured car?

Yes you do, because the vehicle actually belongs to you. Your boyfriend shouldn't be able to get insurance on it without you being on the policy since you are the primary owner of the vehicle. Please know also that whatever happens with that vehicle while your bf is driving still makes you as the owner liable for any accidents or other harm that may come to someone else or their property. If you have speeding tickets or accidents that will cause the insurance premium to go upand have a policy with a different company, you need to show the insurance company that you have another policy and are already being charged for them. They can't charge you again for the same offenses that the other insurance company is charging you for.

Can you drive your parent's insured car with your parent sitting next to you even though you are not in their insurance policy?

Additional information is needed:. 1. Are you a licensed driver?. 2. Do you live in the same household as the parent 'sitting next to you'?. 3. Do you have any insurance coverage of your own, on a vehicle that you own?. and finally. 4. In what state?. But first of all, bear in mind, different companies write different policies; some may have legal specific exclusions that others don't.

Can the co-buyer insure a car?

Yes the co-buyer can insure the car because basically its sayingthat the co-buyer has ownership in the automobile as well as thebuyer.

I live in California i am 17 about to get my license. Car insurance for me is to much if i drive my parents car it has insurance am i covered even though i am not listed on their policy?

You cannot legally drive the car without having an insurance policy.. Car insurance market is very competitive nowadays. So if you are ready to spend about half a day on computer and telephone, finally you'll be able to find an appropriate rate.. Here is what you suppose to do:. 1. You should obtain multiple car insurance quotes online. Here are just some of these sites, I'm sure there are many more:. http://www.autoinsurance.24by7info.com . http://www.wisepages.com/money/insurance/index.html . http://www.autoinsurance.wisepages.com . 2. Even if you'll find some attractive rates online, do not rush to sing in. Keep these numbers in mind and call your local insurance broker. Describe your situation to him and wait for his numbers.. 3. Compare all quotes you'll get online and from your broker and make your mind. However still do not rush to sing in.. 4. You have to know that company, which is offering you a good rate is indeed a reputable company. www.AMbest is an independent rater of all insurance companies. If company, which is offering you good quotation is rated A or higher by AM best it is a good company. If it's rated below A, I'd think twice before signing with them.

If you have your own auto insurance policy for a different car will you be covered if you drive a car not on your policy?

If the vehicle not listed on the policy is a new car that you have recently purchased, you generally have 30 to notify your insurance company of the change. If the vehicle you are driving is just a friends car then, no. Insurance is primary to the vehicle and it is important that the owner of the car have insurance on it and that any drivers of the car be listed as covered on their policy. There are exceptions to everything and these rules will vary by company. It's best to check directly with your insurance company for questions like this.

Does your insurance policy follow you if driving someone elses car?

No, in the state of Mass where i am from, the insurance is covered for your car only. It will not follow you if you choose to drive another vehicle. You may want to check the state your are in if this is different, as they may have a different type of policy you can purchase that will cover you. With my experience, the only insurance you have is your health insurance if you are driving another persons vehicle.

Can a buyer take a co buyer off a car loan?

Only the lender can take a party off a loan. Generally, a loan must be paid off and refinanced to convert it to one person's name. If both parties are on the certificate of title, one party must voluntarily give up their title to the car by signing the title over to the other party.

If you sell a car and agree to maintain the car insurance for the buyer and the buyer pays the premium and then the buyer is in a car accident does the seller's insurance cover the damage?

At the time of the loss the named insured on the policy and the title holder has to be the same (or family) for the insurance to be proper. If a 40 year old male sold his vehicle to a 18 year male, and the insurance was kept in the name of the 40 year old person, there might be a problem paying for a claim, especially in situation where there was an accident involving the 18 year old, regardless who paid for insurance.

Who owns the car the buyer or co-buyer?

Whoever is listed on the Certificate of Title is the owner of the car. Whoever is listed on the Certificate of Title is the owner of the car. Whoever is listed on the Certificate of Title is the owner of the car. Whoever is listed on the Certificate of Title is the owner of the car.

Can you get a policy of car insurance to drive your sons car?

The owner of the vehicle must have the insurance in their name. You cannot legally insure something that you do not own. You can be listed as a driver on the policy and therefore can drive the car with no problem. You never want to insure something that you do not own because any benefits cannot be paid to you because you don't own the vehicle and they cannot pay the owner because he doesn't have a contract with the insurance company. I have, under special circumstances made exceptions with permission from the insurance company. If you son was in Iraq for military service for example, I have gotten the insurance company to allow the son to give the father power of attorney over the vehicle by signed and notarized documents. The policy is still written in the son's name as it should be but it allows the father to sign the insurance application and handle the insurance.

Is the co signer the same as the co buyer?

No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay. No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay. No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay. No. The co-buyer has an ownership interest in the property. The co-signer does not and only guarantees the loan will be paid. The co-signer is equally responsible for paying off the loan if the primary borrower fails to pay.

Can a boyfriend and girl friend each have a car registered to them one his and one hers on the same insurance policy as long as they live in the same house?

Some companies are fine with it so long as you have declare yourself common law married and other companies will not accept it. If you insist your single like by filing separate tax returns and such then it would be fraud to try and insure together as married, you would have to get you own policies. It would be illegal to declare yourselves common law married with the insurance company to get a better rate and then declare yourself single with the I.R.S. or some other government agency such as your State Taxing authority, State financial aid services, the social security admin, AFDC, welfare and others. You can't say that your married in order to entice an insurance company to give you a lower rate and then turn around and tell Social services or Tax people hey, Today I'm single because that gets me more money here. That would be fraud. Also it depends on your state laws regarding Common law marriage or if they even have that where you live. So it really just depends on the insurance companies underwriting guidelines, Your state laws and your own declarations as to the nature of your relationship. Bare in mind that if you obtain insurance under fraudulent pretense and then have an accident. If the insurance company finds out they would not have to pay for anything to anybody. The law does not require an insurer to pay claims from policies that are the result of Fraud. In such a case it would be just as bad as if you had no insurance at all. Your insurance policy will be considered "Null and Void" You would both be sitting high and dry owing money and fines to everyone involved and no insurance company to pay the bills for you.

How do you remove spouse from auto insurance Husband is disabled living permanently in a long term care facility does not drive or even own a car Insurance won't remove him from the policy?

The first thing you need to determine is if having your husband named on the policy is causing your premium to be higher than if his name wasn't on there? If the answer is NO, there is no valid reason to pursue having him removed. Drop the issue. If including his name is causing higher premiums, that is why the insurance company won't remove him. They'll lose money if the do so and, as much as it sucks, they can legally do so because he is your spouse, regardless of anything else. They love to do this in situations where husbands get a few DUIs and end up losing their license for 5-10 years or even for life. He still has access to your keys and might possibly drive it without a license and cause a very expensive accident that they would have to pay for! If your hubby has a clean driving record for the last 3-years or no license for that time period, it's unlikely that having him on the policy is working against you. If you removed him, they could choose to change your marital status from Married to Single or Divorced, which would increase your premium by 10-30% instantly! If you were paying $1500/year as married and were reclassified to single, it could cost you up to $600/year or even more and they DO NOT 'undo' it once they do it! If you are determined to have his name off of your auto policy, your only realistic option is to switch insurance companies! You have the right to cancel your existing policy at any time, regardless of when it expires or renews. But if you go this route, be certain that you don't have even one day without coverage. A 1-day coverage lapse (or any lapse longer than that) can cost you THOUSANDS over the five year period following the lapse.

Where can one get a Car Buyers Guide?

If you are looking for a car buyers guide you can pick one up at most car dealerships. You can also view or print this off online if you are looking for an electronic version.