Hi guys, quick question about car insurance and registration for a friend. My friends dad bought a car, but due to financial reasons my friend will register the car under his name and put his dad under his insurance policy. My question is since the car is registered under his name and under his insurance policy, if his dad for some reason gets into an accident can the other party go after my friend for any reason since the car will be registered under him?

 

I think yes. My gf's parents kicked her off their plan once she turned 18 and my parents did the same to me.

I think because all of that stuff is under your friend's name, he's partially liable even if he's not driving.

 

Also, if his dad gets a camera-speeding or camera-red-light ticket where no driver-points are given, junior, as the registered owner of the car, may have to pay the ticket (or work out some kind of deal with his dad).....the fine will be addressed to him.

 

in CA, in that case, all he needs to do is just to bring the photo to court and they will throw that case out. registered owner is not responsible for tickets he's not part of

but back to OP, yes, your friend will likely be "liable". dangerous idea in general

 

Depending on who is his insurance company, the policy protects the listed drivers and the primary policy holder. For example, if his dad gets into an accident and he causes property damage and bodily injury, the policy will protect him up to their policy limits. The only time the other party can go after the registered owner or primary policy holder is if the limits of their liability is exhausted.

So lets say they have a liability policy of 15/30k and the damages and injuries are 100k. Insurance will cover him to the their policy max, anything beyond that, the other party can take sue and take them to the cleaners (property, assets, etc).

I cannot emphasize enough to my own friends and family to carry good coverage. You can never have too much coverage...especially in this day and age where many cars can cost 50k or more.

 

Yes--but that's what he has insurance for. If someone "goes after" your friend, his insurance company should be taking care of the suit. If he's really worried, he can bump up his coverages.

Edit--yeah--exactly what flipside909 said.

 

In VA, if your name is on the registration , an attorney can go after you !! Your the owner of the car, that's why most parents want their names off the registration as soon as possible, lawyers go after the deepest pockets !!

 

So here is the latest. My friend registered the car under his name and his dad will find his own insurance to drive the car so they won't share the same policy. Is my friend still liable for anything? I understand he wants to help his dad, but his dad is a high risk driver (old and uses hand controls for gas and brake). He doesn't believe me that he is liable for damages his dad could cause. I'm trying to find a reputable website that might explain it to him but i can't find home. You guys have any ideas?

 

Sounds to me like you're getting into a pretty complex situation there....more, at the moment, than may be feasible. Since your dad is partially motion-impared (you didn't mention that earler) maybe the best thing is either for him to have his own car with the special controls he needs, and his own insurance policy, or for you to simply take him, in your car, where he needs to go, as long as it doesn't get out of hand.

 

It's not that complicated in CA.

1. The registered owner of the car is exposed to liability, can't escape that.
2, As to the Dad getting insurance for a car that is not even registered to him, not happening.

 

Since your friend is the owner of the car (by registration), only he can carry a comprehensive policy on the vehicle. His dad can carry his own liability.

What this means is that if his dad wrecks the car, his dad's insurance WILL NOT cover any repairs - only repairs and medical bills for the non-fault party(ies). Your friend's insurance might cover it or might not, depending on the situation, and is something your friend needs to talk to his insurance agent and get information on.

A good insurance company will cover it. A bad, cut-rate company that advertises based on "how little you will pay" most likely will "say" they cover it, but most likely do everything possible to avoid paying.

Either way, your friend is in a bad position, because he is liable for what happens to the car - not his dad. Also, he can be sued should his dad injure anyone, as he is the registered owner of the vehicle.

 

Thanks for the answers guys. Yeah I'm worried his dad will get into an accident and the other party going after my friends assets when he wasn't even driving. So my suggestion to him is since he is registered owner he should transfer the car to his dad as a gift so my friend doesn't have to be registered owner.

Does anybody know how a car as a gift works? will his dad need to pay any taxes on it?

 

In CA you can transfer car to family member without paying sales tax and without getting a smog certificate. I did one transaction like that in late 2008.