Car Insurance question

[johndoe1983]

hey guys, question for you all.

Friend of mine has his dad taking out car finance for him.

Can he (my friend) sign up for the insurance himself under his own name? His dad stated that he should take care of the insurance under his own name.

I'm not sure what the law is in South Africa, but i wonder if you can take out car insurance for yourself on a car he doesn't have under his own name?

I believe there is something called 'non-owner car insurance', but wanted to get your input on this.

This became a 'over dinner' discussion, so wanted to give him some feedback as to what you guys know about this.

 

[Hemi300c]

FTRR&I

 

[deweyzeph]

Insurance will always ask who the regular driver is of the car regardless of whose name the insurance policy is in. They don't care who pays for the insurance or whose name the insurance policy is in as long as you have truthfully stated who the regular driver is of the car. So yes, it's very common to insure a car that doesn't belong to you. For example, I insure my wife's car. The car is registered in her name, but it's insured under my insurance policy, with her as the stated regular driver.

 

[Venomous]

yes, you can insure the vehicle under your name while it is another person's. Just be honest, and know that any payouts will go the the registered owner of said vehicle, AFTER the vehicle finance is/was settled.

 

[ReggaeBoyz]

Beneficial interest

You can only insure something if you have beneficial interest in that thing. Therefore you can insure your wife's/fathers/mother's etc. Car if it would affect you if something happened to it such as you having to provide transport if the vehicle is stolen etc. You would not be able to insure a unrelated thing (or person) and collect the insurance if a claim arises. If I remember correctly you can also not insure minor children.

 

[Venomous]

You can only insure something if you have beneficial interest in that thing. Therefore you can insure your wife's/fathers/mother's etc. Car if it would affect you if something happened to it such as you having to provide transport if the vehicle is stolen etc. You would not be able to insure a unrelated thing (or person) and collect the insurance if a claim arises. If I remember correctly you can also not insure minor children.

he bought the car in his dad's name, OP is THE main driver and wishes to take financial ownership of the insurance.