Let me explain. My car payment is $406.16, and my car insurance is $236. I’m a broke college student, and I can’t afford these payments every month. A family friend offered to pay both under my name. I wouldn’t give him the car title; I would just trust that he’ll make the payments.
My main question is: Does he need to get his own car insurance? If he does, do I need to tell the bank that I don’t have insurance under my name? What happens if the bank has my name but the insurance has his? Can it work this way?
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It doesn’t work that way. If this person wants to assist with your payments, they should give you the money directly so you can make the payments yourself. Otherwise, you could be violating your loan agreement and insurance policy.
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So, a friend is either giving or loaning you money to cover the car loan and insurance? Will they ever drive the vehicle?
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He can’t insure your car because he doesn’t have an insurable interest in it.
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This situation seems suspicious. It’s unlikely that a family friend would agree to cover both your car loan and insurance. It would be wiser to trade in your car for a more affordable and reliable option. This could potentially lead to serious problems.