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Q

Can I add my dad's vehicle (which is still financed in his name) to my current auto policy? He is 79 and no longer driving. I currently have possession on the vehicle.


A

When a vehicle is financed in someone else's name, it can be difficult to place that car on your own car insurance policy.

The problem you run into is that the finance company wants to have evidence of car insurance in the name of the person responsible for the loan (your father) and not in your name, even if you are in possession of the car.

You or your father will need to contact his lienholder and find out if they will allow you to carry the insurance, with you as the named insured instead of him.

If the lienholder allows you to be the named insured, you would still have to get over another hurdle with your car insurance company by finding out if they will allow you to insure a car you don't own.

Most auto insurance providers require that you own a car to place it on your policy and insure it. This is called having insurable interest in the vehicle.

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There are some auto insurers, such as Esurance, which allow you to take a policy out on a car you do not own. If your car insurance company allows this, then you would still have to list your dad as the car owner on the policy.

If neither the finance company nor your own insurance company will allow the plan of letting you place the car on your auto insurance policy, then your father may need to see about having you added to his policy since you have possession of it and are driving it.

Your father could see about listing you as the primary driver, and if he isn't driving at all, he may even see about excluding himself from the policy, which may help lower the car insurance rates.

For this arraignment to work, the car insurance company would have to agree to it, and you would need to inform them that the car was in your possession at your address.

If the car were not financed and your father could simply place the car in your name, it would make it much easier to insure the vehicle.

It may be that if you can't get the financing company to agree to let you insure the car, or you can't get an insurance company to insure it since you don't own it, you may need to see about refinancing the car in your name.


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