Chitah831

I have a quick question about insurance for my girlfriend. She is planning on purchasing a new car and having it registered under her name, but both her and her mother would be insured on the vehicle. If my girlfriend were to be at fault in an accident, and the other party decided to sue beyond the coverage on the insurance, would they be able to sue her mother also? Or would it be strictly between my girlfriend and the other party?

Reason I ask is because her mother doesn't want to be responsible in case something happened. And since my girlfriend is fairly young and doesn't have much assets to lose, it would be better if it was just her involved.

I'm just taking a guess that they could only sue the registered owner if they're driving. But we'll double check with a local agent tomorrow since they're already closed.

pjkwong

If the policy is in her name then she would be the only person responsible.
If her parents have their own auto insurance then it shouldn't be a problem for sure.

under-rated

[QUOTE=Chitah831,Dec 23 2004, 05:22 PM] I have a quick question about insurance for my girlfriend. She is planning on purchasing a

under-rated

How old is your girlfriend bro.

If she isn't to the age of majority, chances of her getting insured would be slim to none. She'd need someone to co-sign for her. Contract will be void and it's a pretty common to not engage into contracts with minors.

Lastly age = liability, it's a bigger risk that the agency will be taking.

Bottom line, it's easy to complicate a simple matter. But, she really needs someone to co sign. The co signer will remain secondarily liable on the contract... Which means it could potentially =F up whoevers credit. Hope I helped, those are some of the scenarios.

Chitah831

She is 18. Her mom is going to co-sign for her since she has really good credit, but the car will be mainly registered under my girlfriend.

The reason why her mom is going to be insured also is just to keep rates down and probably since she can't be insured alone to begin with.

I know that if my gf doesn't pay then her mom will be liable to pay and may screw up her credit, but we aren't worried as we're certain she can take care of the payments.

I'll check some more into it.

Slithr

I believe the primary issue in determining liability for mom would be whether her name appears on the title. If not, then she should be in the clear. I can't see how just being insured on the vehicle would create any liability on her part.

under-rated

[QUOTE=Slithr,Dec 23 2004, 08:26 PM] I believe the primary issue in determining liability for mom would be whether her name appears on the title.

Chitah831

Alright. I really appreciate the information guys. I always figured her mom couldn't be held liable if the car wasn't in her name or if she wasn't driving.

Another question though.. my gf is still under her parents' policy on their other two cars. The 6 month policy ends in April I believe. Would they receive any credit if they were to drop my gf off the policy right now? Or is it pretty much no credit/nonrefundable? I suppose it depends on the company.

under-rated

Your gf's main concern was liability...

Again, regardless of who's on the policy, insurance will cover it.

If the coverage is limited to 250k in liability, that should be sufficient enough, and sometimes mandatory when financing. Unless someone tries pursuing something, which will be handled in litigation... so don't worry about the liability.

As far as your question on dropping coverage, they prorate what has been paid as of the date of cancellation to the date paid in arrears. She will be compensated that excess amount.

I really don't know why she's shopping around if she's on a policy w / multiple vehicles, multiple people w / seniority, and clear driving records ? Scan her policy. Let us take a look.