How to Put Car Insurance in Your Parent’s Name

Getting a car insured under your parent’s name can save you a lot of money. The premium is usually low for people in their mid-forties and fifties. They are considered safer drivers because studies show they take fewer risks on the road. Although their insurance rate may go up, the additional cost will be cheaper than the cost of getting insurance in your own name (especially if you are under twenty).

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Quotes from your parent's insurance company and other insurance companies

Getting Insurance on an Existing Car

1. Ask your parents to call their insurance company and get a personal quote for adding a household member to their existing policy.

2. Ask them to call various insurance companies to compare rates. Often, other companies may offer a lower rate and it may be worthwhile to switch insurance companies.

3. Get quotes on insurance rates if you were to take the policy in your name and compare this with the above rates--even if you just to appreciate the difference.

Getting Insurance on a New Car

4. Register the new car in your parent’s name if you are above the age limit required by your parent's insuanrce company. You can register a new car in your name and obtain coverage through your parent's company if you meet the company's age limit standards.

5. Ask your parents to call their insurance company and get a personal quote for adding a household member to their existing policy.

6. Ask them to call various insurance companies to compare rates. Often, other companies may offer a lower rate, and it may be worthwhile to switch.

7. Call to find out insurance rates if you were to take the policy in your name and compare this with the above rates--even if you just wanted to see the difference.

Tips & Warnings

• Take advantage of this, even if you are not a minor or under 18 years of age. Any adult family member can be added to an existing insurance policy of another family member.
• Avoid buying a sports car. This can really raise your parent's overall insurance rates.

[Redbella]

on 2/24/2008 This practice is illegal and is known as 'fronting'. It is a form of fraud, as the policyholder should be the main user of the vehicle, and named drivers only occasional users. If you are the main user and you have taken out a policy in your parent's name, in the event that you make a claim, once your deception is discovered (and it most likely will be), the entire policy may be treated as void, and not only will you not be able to recover your losses, but you will effectively have been driving with no valid insurance for the entire period. Doesn't take a genius to see all sorts of negative outcomes to that scenario. Also, you will have great difficulty and expense in insuring in your own name in the future. Many people are unaware that this practice is illegal, and publishing an article like this on the web encourages fraud and may mislead people into believing that this is a legal prac