You are correct that this is a bad idea for many reasons. If the insurance company is not informed of who the real car owner and main driver is, presumably the friend, then your boyfriend getting an insurance policy in this manner could in fact be illegal. Without your boyfriend having insurable interest in the vehicle it may difficult for him to insure the friend's car anyway.

In most states putting a car on your policy in order to save money in this manner could be considered insurance fraud. It would be misrepresenting the facts to say that the car was his and residing at his household if it really is his friends and is garaged at his friend's residence. His friend's driving record should be part of the rating process since he is the owner and driver.

For example, in Florida any person who knowingly and with intent to injure, defraud, or deceive any insurer, files a statement of claim or an application containing false, incomplete or misleading information, is guilty of a felony of the third degree.

To find out what your state insurance laws say about this type of situation, contact your state's insurance regulator.

If the friend of your boyfriend is paying too much for insurance he should try shopping around for better insurance rates. He can start by getting an auto insurance quote here with us.