Mom financed a car in her name but I’ll be the main driver… how do I handle insurance?

Questions
1

I’m in a situation where I need to move quickly, so my mom financed a car under her name for me. I’m not listed on the loan. She’s the owner, and only her name is on the paperwork. I want to make sure it’s insured properly and avoid any insurance problems, especially in case of an accident. I’ll be parking it at my place (we live about 30 minutes apart). Should my mom set up the policy and add me as a driver, or should I create the policy myself and add her? Any advice would be appreciated. (I’m in Colorado).

2

You’ll probably need to work with an independent insurance agent who can look into options for you. Where you live and the company’s rules may change things a bit.

3

Kai said:
You’ll probably need to work with an independent insurance agent who can look into options for you. Where you live and the company’s rules may change things a bit.

Thanks, I’m in Colorado. I’ll get in touch with an agent to see what they say.

4

Most likely your mom would need to be the one to insure the car and just list you as the driver. Also, make sure the address for where the car will be kept is updated.

5

Rory said:
Most likely your mom would need to be the one to insure the car and just list you as the driver. Also, make sure the address for where the car will be kept is updated.

I wasn’t sure how it works with different addresses but this is helpful. Thanks, I’ll look into this more.

6

  1. Your mom would need to be the primary on the insurance since she’s the legal owner and the financing company will require it.

  2. Make sure she tells them the car will be kept at your address so it’s properly rated. That way, if something happens there’s no confusion if your zip code is different.

  3. She should add you as a named insured on the policy.

7

@Tan
This really clears it up, thanks a lot.

8

Your mom’s insurance policy with you listed as a driver would work best.

9

Haven said:
Your mom’s insurance policy with you listed as a driver would work best.

Makes sense, thank you.

10

Just make sure you add comprehensive and collision on the policy. List the finance company and your mom as additional interests for extra protection.

Wishing you the best; things will get better soon.

11

Monroe said:
Just make sure you add comprehensive and collision on the policy. List the finance company and your mom as additional interests for extra protection.

Wishing you the best; things will get better soon.

Thank you for the kind words and advice.

12

You might also want to check with your state’s insurance department or DMV.

The domestic violence part caught my eye. Some insurance companies have programs to help protect people in these situations, though they can vary by state.

Best of luck to you. Call your state to get more info on this.

13

@Kei
Wow, I had no idea. I’ll definitely look into that. Thank you so much for letting me know.