Car insurance, how does it work?

[etopetrovich]

I'm want to buy my first car soon and I'm trying to avoid getting a policy in my name because that would cost at least 6-7k/year. Lettuce be reality that's ridiculous and unaffordable. My mom keeps failing the driving test, so I'm not sure if I can get the policy under her because she only has a permit. Another option I have is get it covered under her friend's insurance, but I don't know if that's allowed/legal because the car would be registered under my name. Obviously my knowledge in field this is ****ty and much help/advice is appreciated.

[jak3e1992]

[rnacdaley]

You are gonna need your own. If you get a car that is of low value you can most likely avoid needing 'collision.' Old car, no collision (only liability) = best option to keep cost down. Also, get a high deductible ($500) this will also lower the cost. Finally, there are typically discounts if you allow the insurance company to automatically draft the payment monthly from a checking / savings account.

[joelash302]

I'm want to buy my first car soon and I'm trying to avoid getting a policy in my name because that would cost at least 6-7k/year. Lettuce be reality that's ridiculous and unaffordable. My mom keeps failing the driving test, so I'm not sure if I can get the policy under her because she only has a permit. Another option I have is get it covered under her friend's insurance, but I don't know if that's allowed/legal because the car would be registered under my name. Obviously my knowledge in field this is ****ty and much help/advice is appreciated.

Very briefly - Insurance follows the vehicle, not the driver (this is why the VIN is required on a policy). If you are driving your buddy's car and plow into someone, his insurance will activate to pay the damages (as you are a permitted driver which is a clause in most, if not all, policies). At which point, his rates get hit hard as to insurance companies, it appears that your buddy is a moron who loans his car to bad drivers.

From that point, having your own policy means your policy will reimburse his policy instead of you potentially paying it out of pocket.

[MarkVI]

Your insurance will not be 7k ....I have everything on mine and a low deductible and I pay 90 a month....

you live in NY, why drive? there's too much traffic. get a bus pass

[etopetrovich]

You are gonna need your own. If you get a car that is of low value you can most likely avoid needing 'collision.' Old car, no collision (only liability) = best option to keep cost down. Also, get a high deductible ($500) this will also lower the cost. Finally, there are typically discounts if you allow the insurance company to automatically draft the payment monthly from a checking / savings account.

I looked at online quotes and called couple of agents, as agents explained it's expensive because of my age and lack of driver experience, the car doesn't change the price significantly

Very briefly - Insurance follows the vehicle, not the driver (this is why the VIN is required on a policy). If you are driving your buddy's car and plow into someone, his insurance will activate to pay the damages (as you are a permitted driver which is a clause in most, if not all, policies). At which point, his rates get hit hard as to insurance companies, it appears that your buddy is a moron who loans his car to bad drivers.

From that point, having your own policy means your policy will reimburse his policy instead of you potentially paying it out of pocket.

The friend is aware of that and would still do it, but can a car registered in my name be under his insurance?

Your insurance will not be 7k ....I have everything on mine and a low deductible and I pay 90 a month....

you live in NY, why drive? there's too much traffic. get a bus pass

An unlimited bus/train pass is around 100$ a month and if you took the bus here you would not say that. Trains are decent, but some things you just need a car for and there isn't much traffic in brooklyn.
brb going grocery shopping or stores like home depot
brb going upstate or outta city
brb takes 1 hour get to college and on car 15mins
brb helping my mom driving her to work and saving her 3-4 of travel a day

[otterakl]

Your insurance will not be 7k ....I have everything on mine and a low deductible and I pay 90 a month....

THIS. I had an SUV with 4x4 when I was 16 and my insurance was only ~$1k every 6 months. If someone is offering you $6-7k, look somewhere else. No major company (Progressive, Geico etc.) will charge you ANYWHERE near that much.

[joelash302]

The friend is aware of that and would still do it, but can a car registered in my name be under his insurance?

You can't obtain insurance on someone else's item without establishing proof of a direct financial interest in the item. I think what you are suggesting is possible to execute but would likely result in a denied claim if something big happened (coverage was originally not valid due to fradulent reporting to the insurance company). In which case you would be hella f'ed financially. It would be possible for your friend to own 2 cars, get a multi-car discount, and then you pay him directly for the increased rates. However, having a policy for a while gives you better points so over time it would be beneficial to get your own policy started.

I'm curious if you are looking into a car that will have a loan on the title or not. If you can buy a car outright, you don't need comprehensive coverage by law and can get away with only collision which would reduce your rates.