Buying a car and insuring on parents name

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Avikage

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Hi,

Is is possible to a buy a car which is financed on my name and insuring the car on my parents name where i am the secondary driver?
 
What you can do, if your parents are amenable to the idea...

Get them to finance the car with you as surity, and you sign a contract that you will pay them the installments every month, or that you specify your bank account for the installments to come off of.
 
Avikage said:
Hi,

Is is possible to a buy a car which is financed on my name and insuring the car on my parents name where i am the secondary driver?
Click to expand...
If you have to claim at some stage and it transpires that you are the primary and not secondary driver, your claim could be invalidated.
 
Errr...

I bought a car and insured it under my dad's Santam portfolio. I was also registered as the principal driver. When I had an accident, they had zero issue paying out. My dad had to register the claim, but the money was paid into my account.

It was very chilled and it cost me R630 p/m VS R1350 p/m if I insured it myself at the same place.
 
Voicy said:
Errr...

I bought a car and insured it under my dad's Santam portfolio. I was also registered as the principal driver. When I had an accident, they had zero issue paying out. My dad had to register the claim, but the money was paid into my account.

It was very chilled and it cost me R630 p/m VS R1350 p/m if I insured it myself at the same place.
Click to expand...
That's the key part.
 
If you can show that you are partially dependent on your parents, and that damage to or loss of the vehicle would result in your parents having to provide additional support (still at varsity or just started working) then your parents have an insurable interest in the car and can in fact insure it. If they do not have an insurable interest you run the risk of the claim being repudiated.
 
TonyA said:
Provided you live at the same address.
Click to expand...

I bought my first car 5 years ago and stay on the other side of the country. I'm in Cape Town and my dad is in Durban. It was financed and insured on his name. I just made the monthly payments to his account and I was also registered as the principle driver. The insurer (Outsurance) never had a problem with me staying in Cape Town as I did give them my Cape Town address. Never had to claim though.

The only schlep was when I sold the car last year. All the documentation had to be signed off by him. Also the logbook etc all goes to him. So had to wait a few days to get the sale sorted due to postage times etc.
 
MickeyD said:
If you have to claim at some stage and it transpires that you are the primary and not secondary driver, your claim could be invalidated.
Click to expand...

Agree. Insurance companies constantly remind people about it. This is one of the biggest reasons why they either do not pay at all or the excess is very high.
 
Voicy said:
Errr...

I bought a car and insured it under my dad's Santam portfolio. I was also registered as the principal driver. When I had an accident, they had zero issue paying out. My dad had to register the claim, but the money was paid into my account.

It was very chilled and it cost me R630 p/m VS R1350 p/m if I insured it myself at the same place.
Click to expand...

This is the exact same thing i did. Dropped the costs from R1300 p/m to R780 p/m.
 
BUMP.

I have am in a similar situation. I am a <25 year old male and have my license for 4 years this year. I want to buy a car and have it put it on my name, can I have my mom insure the car as myself as the primary driver?
 
Beware of insurable interest and dependency. There are laws about this and I suggest you work through a brokers who will advise you correctly get it in writing and if their advice is wrong their PI insurance will pay. Every situation is different but The policy holder must suffer a direct financial loss. If you still live with parents this would be possible but if you don't more difficult (ie student living at campus)
Please work through a broker and even if direct get confirmation in writing or endorsed on policy.
 
Hemi300c said:
Beware of insurable interest and dependency. There are laws about this and I suggest you work through a brokers who will advise you correctly get it in writing and if their advice is wrong their PI insurance will pay. Every situation is different but The policy holder must suffer a direct financial loss. If you still live with parents this would be possible but if you don't more difficult (ie student living at campus)
Please work through a broker and even if direct get confirmation in writing or endorsed on policy.
Click to expand...

I still live at home yes. - I do pay "rent" to my mom though.
What do you mean by "suffer a direct financial loss" ?
 
That's what the law state's. That's why you need to discuss and agree with your broker. I find sometimes it's best to have the policy holder or insured as Piet Pompie, Sarie Pompie and Traiq Pompie FTRR&I.
 
my car is under my name , and insurance under my mom's name.

Was no hassle to set it up at santam , will move it to my name next year when im 25 :)

Im registered as the only driver for my car .
 
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