Car insurance

[WaylonS]

There have been a few threads on car insurance, but none seemed to be applicable to my situation. I was hoping one of you could help me.

My parents live in a different state from where I go to med school. My parents have the title to the car I drive, and I am on their insurance policy. I understand that as a full-time student, one is able to maintain a drivers licence for the state they are a permanent resident of (i.e. their's parents' state). However, since I start residency in a few months, I am not sure what to do. If the car were in my name, I would simply change the registration/insurance/drivers licence to my new state. But since the car is not in my name, does the registartion/insurance need to change, and do I need to get a new drivers licence?

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[colbgw02]

If your parents remain the owner, then it is ultimately their responsibility to maintain proper coverage. In theory, they should inform their insurance company that the vehicle is being garaged and driven primarily in the state of your residency program. The insurance company should then create a separate policy that fulfills the requirements of that state. This is what's I do for a car that I garage with my parents in another state. It's relatively straight forward. It's not like I have a separate bill or anything, so it's functionally the same as adding an additional vehicle to the pre-existing policy. I suppose you could run into an issue if their insurance happens not to insure vehicles in your state, but as long as it's a national carrier everything should be fine.

 

[Chip N Sawbones]

If the car were in my name, I would simply change the registration/insurance/drivers licence to my new state.

I know this doesn't apply to your current car, but for anyone else reading this thread, depending on what state you're changing from and what state you're changing to, it might be best to stick with your old state. Check the cost of registration and insurance before you switch state residencies. For example, cars cost four times as much to register and twice as much to insure in Louisiana as they do in Alaska. It is possible to remain an Alaska resident if you leave the state for educational reasons including medical residencies, so I'm going to remain an Alaskan. When I bought a car in Louisiana I had to mail the title to the DMV in Alaska to have it registered there, but it was still worth it. I really should tell my insurance company that the car is being kept in Louisiana, and I will, the day I want my premiums to double and my insurance coverage to get cut in half.

 

[gutonc]

Just to be clear, that up there is what the lawyers and courts like to call "insurance fraud".

The likelihood of you getting caught is pretty low. The likelihood of getting your ass handed to you if you do get caught is pretty high.

 

[colbgw02]

Yeah, and to add to what gutonc said, it doesn't really matter whether or not if Alaska considers you to be its resident. What matters is what Louisiana thinks. And if this ever becomes an issue, then there is very little chance you will convince Louisiana that you aren't their resident, considering that you are living and working there full-time. I get why people choose not to switch their registration, insurance, etc., because the risk/reward ratio is pretty darn good, but let's not pretend that this sidestepping is legally above board.

 

[calvnandhobbs68]

Just to be clear, that up there is what the lawyers and courts like to call "insurance fraud".

The likelihood of you getting caught is pretty low. The likelihood of getting your ass handed to you if you do get caught is pretty high.

Yeah, the insurance application actually specifically says (at least all the ones I've ever seen) "what is the address where this car is parked at night". Pretty straightforward and it'd be hard to argue when the insurance company denies your claim that you didn't know what that meant.

Your problem is not necessarily that the insurance company is going to take you to court over it though (as the actual damages they'd be able to claim are probably almost non-existent unless they fill a claim and find out about it later) but that they'll just deny your claim if you get in an accident or a tree falls on your car in the state you're living in. When the insurance adjuster comes out and asks why you were driving to a hospital in some other state, it'll be pretty hard to come up with a believable story.

 

[shojimoji]

Yeah, and to add to what gutonc said, it doesn't really matter whether or not if Alaska considers you to be its resident. What matters is what Louisiana thinks. And if this ever becomes an issue, then there is very little chance you will convince Louisiana that you aren't their resident, considering that you are living and working there full-time. I get why people choose not to switch their registration, insurance, etc., because the risk/reward ratio is pretty darn good, but let's not pretend that this sidestepping is legally above board.

i actually called louisiana as i matched there and the lady at the dmv said its ok to keep registration there if you will stay under a year. i know that i will be getting 3 weeks of leave and my contract is for 12 months, so it is technically possible for me to fall under this category.

but insurance is something else and i would not take risk with that as what if someone hit you then, how will u be able to get repair done through your insurance company? louisiana is very poor state as well, so i would not count on the chance that somone will provide reimbursement for the damages that have been acquired by you.

 

[colbgw02]

i actually called louisiana as i matched there and the lady at the dmv said its ok to keep registration there if you will stay under a year. i know that i will be getting 3 weeks of leave and my contract is for 12 months, so it is technically possible for me to fall under this category.

but insurance is something else and i would not take risk with that as what if someone hit you then, how will u be able to get repair done through your insurance company? louisiana is very poor state as well, so i would not count on the chance that somone will provide reimbursement for the damages that have been acquired by you.

You've used the pronoun 'there' quite a bit. I can't tell if you're moving to LA or if you already live there.

In any case, the point is not to focus on the specifics of a single state, but rather to recognize that each state has its own set of rules about how domicile is determined. If you're coming from state A, then those rules mean precisely squadoosh if you're moving to state B.

 

[Raryn]

When I was in medical school, driving a car still titled to and insured by my parents, they simply called their insurance company to let them know that their car was being domiciled in <other state 2000 miles away>. Insurance company got a little pissy because their division only covered CA/NV/UT or something, but after talking with a couple people, it was all sorted out and the car stayed on the same policy for those 4 years.

I don't think you need to worry about changing registration if you don't actually own the car, but you should make sure that the insurance company has an up-to-date address. No need to give them any additional reason to deny claims.

 

[gutonc]

When I was in medical school, driving a car still titled to and insured by my parents, they simply called their insurance company to let them know that their car was being domiciled in <other state 2000 miles away>. Insurance company got a little pissy because their division only covered CA/NV/UT or something, but after talking with a couple people, it was all sorted out and the car stayed on the same policy for those 4 years.

I don't think you need to worry about changing registration if you don't actually own the car, but you should make sure that the insurance company has an up-to-date address. No need to give them any additional reason to deny claims.

Insurance companies often have waivers for STUDENTS. The OP won't be a STUDENT and also owns the car himself. Therefore this is irrelevant to the topic at hand.

 

[Raryn]

Insurance companies often have waivers for STUDENTS. The OP won't be a STUDENT and also owns the car himself. Therefore this is irrelevant to the topic at hand.

As far as I know, if his parents in state X own the car, they should be able to keep it on their insurance policy. That policy cost may go up and the parameters might need to be adjusted, but most insurance companies have the capability to do such a thing. No reason the OP would need to get insurance on a car that he doesn't own. Mind you, I'm definitely not an insurance expert.

 

[gutonc]

As far as I know, if his parents in state X own the car, they should be able to keep it on their insurance policy. That policy cost may go up and the parameters might need to be adjusted, but most insurance companies have the capability to do such a thing. No reason the OP would need to get insurance on a car that he doesn't own. Mind you, I'm definitely not an insurance expert.

Dude...read the post.

When I bought a car in Louisiana I had to mail the title to the DMV in Alaska to have it registered there, but it was still worth it. I really should tell my insurance company that the car is being kept in Louisiana, and I will, the day I want my premiums to double and my insurance coverage to get cut in half.

He owns the car, bought in LA, domiciled in LA with an LA title, registered and insured in a state it's never been within 4000 miles of. At that point, why even bother having insurance? It's not going to cover you if/when something happens.

 

[gutonc]

Why not have them transfer over the title to you?

AKA...be an adult.

 

[Raryn]

Dude...read the post.

He owns the car, bought in LA, domiciled in LA with an LA title, registered and insured in a state it's never been within 4000 miles of. At that point, why even bother having insurance? It's not going to cover you if/when something happens.

I was responding to the OP, not that poster from LA/AK.

 

[colbgw02]

As far as I know, if his parents in state X own the car, they should be able to keep it on their insurance policy. That policy cost may go up and the parameters might need to be adjusted, but most insurance companies have the capability to do such a thing. No reason the OP would need to get insurance on a car that he doesn't own. Mind you, I'm definitely not an insurance expert.

I was responding to the OP, not that poster from LA/AK.

I covered this in my first post. Yes, the car's owners are responsible for insuring it. Yes, they are supposed to inform the insurance company that the vehicle is being garaged and driven in a new state. And yes, the insurance company will then draft a new policy that meets the owners' needs as well as fulfills the new state's requirements.

 

[gutonc]

I was responding to the OP, not that poster from LA/AK.

Oh. Yeah...his question was answered in post 2. The rest of the thread has been about insurance fraud guy.

 

[shojimoji]

You've used the pronoun 'there' quite a bit. I can't tell if you're moving to LA or if you already live there.

In any case, the point is not to focus on the specifics of a single state, but rather to recognize that each state has its own set of rules about how domicile is determined. If you're coming from state A, then those rules mean precisely squadoosh if you're moving to state B.

no i will be moving to louisiana after i give my step 3

 

[calvnandhobbs68]

AKA...be an adult.

It'd probably be less "adult-like" to have them give you a car for free (transfer the title to you) rather than them keeping the title, able to take back the car whenever they want and resell it/trade it in. Just sayin'.